Trade Scenario Between Bangladesh and Australia

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Trade Scenario Between Bangladesh and Australia

Australia is one of the important business partners of Bangladesh. Both Bangladesh and Australia maintain a good bilateral trade relation and have been doing business for their mutual benefit. During 2019-2020 Bangladesh export to Australia was US$ 678.19 million.

2. 0 The balance of trade between Bangladesh and Australia is given below (Value in Million US$)

Fiscal Year	Export	Import	Balance
2017-2018	712.92	843.70	(-) 130.78
2018-2019	804.63	596.70	(+) 207.93
2019-2020	678.19	649.30	(+) 28.89
2020-2021	834.05	750.30	(+) 83.75
2021-2022	916.24	1239.00	(-) 322.76
2022-2023	1259.15

3.0 Exports: The main items exported from Bangladesh to Australia include: Woven garments, Knitwear, Footwear (Leather), Leather & leather goods, Cap, Jute goods, Frozen fish, Plastic products, Furniture etc.

Commodity-wise Bangladesh export to Australia in the fiscal year 2020-2021 may kindly be seen at Annexure- ‘A’. It may be mentioned that to boosts up Bangladesh export to Australia Bangladesh is participating in the “Australian International Sourcing fair” since long.

4.0 Imports: The major items imported from Australia into Bangladesh are: Edible vegetables and certain roots and tubers, Iron and steel, Copper and articles, Fertilizers, Paper & Paper board, Vehicles, Dairy products, prepared foodstuffs, Pulp of wood, Edible fruit and nuts etc.

5.0 Duty free market access to Australia :

Under the latest tariff regime introduced by Australian Government since 1^st July, 2003 all the products originating in LDCs have been allowed duty-free market access under GSP scheme. The rules of origin for the LDC requires 50% local contents but the Australian Government has allowed a very broad definition of local content to assist LDCs to meet that target.

6.0 Rules of Origin :

(i) In case of Manufactured goods

(a) the last process in the manufacture of the goods should be performed in an LDC ; and

(b) The allowable factory cost of the goods should not be less than 50 percent of the total factory cost of the goods.

(ii) As regards local content the following situation are mentionable:

Situation A : 50% total from Bangladeshi source
Situation B : 50% - Bangladesh + other LDCs + Forum Island Countries (Cook Islands, Fiji, Kiribati, Nauru, Niue, Papua New Guinea, Samoa, Solomon Islands, Togo, Vanuatu) + Australian source.
Situation C : 25% - Bangladesh + other LDCs + Forum Island Countries + Australian source ; 25% - Developing Country (DC) source.

7.0 Initiative to boost exports:

Efforts are underway to increase the volume of export from Bangladesh to Australia. With this end in view, Bangladesh has been participating in the International Trade Fairs held in Australia regularly.

8.0 Bottlenecks/Constraints to export Australia :

Supply constraint on our part ;
Higher rate of freight;
Small size of the market ;
Small order;
Quarantine Problem;
Local sales tax ;
Chinese dominance Australian market.

9.0 To increase our export to Australia following measures may be taken :

a.	Bangladesh Trade Show may be organized in big cities of Australia like Sydney and Brisbane. Exporting companies from different sectors may participate in those shows for displaying their best quality products;
b.	Business delegation from both private and public sectors may visit Australia frequently in order to find out areas of new business lying still unexplored;
c.	Australia has a lot of raw materials like Wool, Fruits, Diamond, Iron ore etc. If they invest in Sweater, Wine, Diamond Cutting and Polishing, Steel factory in Bangladesh, they will be able to make finished products here using their own raw materials and export the same to Australia as well as European and other Countries taking advantages of duty free - quota free market access accorded in favour of Bangladesh;
d.	Australian investors may be encouraged to invest in textile, power and IT sector in Bangladesh ;
e.	Since Australia has offered us duty free facilities, businessmen and importers of Australia may be requested to import more Bangladeshi products at the competitive prices;
f.	Australian Business delegation may be invited by our different Chambers;
g.	Australian importers/traders/wholesalers/retailers may be warmly invited to participate in different types of international fairs which are held from time to time in Bangladesh ;

Annexure- ‘A’

Bangladesh Export to Australia

FY 2020-21

(Value in US$)

		834050939.8
01.	61: Articles of apparel and clothing accessories, knitted or crocheted	430,381,659.75
02.	62: Articles of apparel and clothing accessories, not knitted or crocheted	300,744,110.71
03.	63: Other made up textile articles; sets; worn clothing and worn textile articles;rags	56,938,293.27
04.	42: Articles of leather; saddlery and harness; travel goods,	6,980,720.87
05.	64: Footwear, gaiters and the like; parts of such articles	5,998,406.36
06.	65: Headgear and parts thereof	4,259,604.94
07.	19: Preparations of cereals, flour, starch or milk; pastrycooks' products	3,794,985.97
08.	53: Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn	3,666,643.63
09.	28: Inorganic chemicals; organic or inorganic compounds	2,681,745.87
10.	20: Preparation of vegetables, fruit, nuts or other parts of plants	2,541,351.03
11.	85: Electrical machinery and equipment	2,336,022.17
12.	17: Sugar and sugar confectionery	2,000,278.30
13.	46: Manufactures of straw, of esparto or of other plaiting materials;	1,736,533.59
14.	03: Fish and crustaceans, mollusc and other aquatic invertebrates	1,714,783.35
15.	39: Plastics and articles thereof	1,369,254.16
16.	30: Pharmaceutical products	1,348,752.17
17.	09: Coffee, tea, mate and spices	888,473.18
18.	10: Cereals	632,411.07
19.	94: Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishing; lamps and lighting fittings, NES or incl.; illuminated signs or name-plates and the like; prefabricated buildings	579,275.05
20.	90: Optical, photographic,	448,076.32
21.	95: Toys, games and sports requisites; parts and accessories thereof	426,123.44
22.	84: Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	326,196.42
23.	07: Edible vegetables and certain root and tubers	302,086.59
24.	56: Wadding felts and non wovens; special yarn;	276,985.05
25.	57: Carpets and other textile floor covering	230,943.59
26.	41: Raw hides and skins (other then furskins) and leather	215,719.77
27.	04: Dairy produce; bird's eggs; natural honey; edible products	169,156.46
28.	48: Paper or paperboard; articles of paper pulp, of paper or paperboard	162,295.45
29.	58: Special woven fabrics; tufted textile fabrics; lace;	154,994.81
30.	69: Ceramic products	145,553.27
31.	74: Copper and articles thereof	102,800.26
32.	96: Miscellaneous manufactured articles	100,175.01
33.	76: Aluminium and articles thereof	69,993.79
34.	15: Animal or vegetable fats and oils and their cleavage products;	68,980.84
35.	22: Beverages, spirits and vinegar	49,527.45
36.	12: Oil seeds and oleaginous fruits;	46,150.23
37.	70: Glass and glassware	43,614.10
38.	08: Edible fruits and nuts; peel of citrus fruit or melon	24,626.29
39.	16: Preparations of meats,	24,603.67
40.	21: Miscellaneous edible preparations	23,977.53
41.	67: Prepared feathers and down	13,649.62
42.	83: Miscellaneous articles of base metal	13,136.68
43.	25: Salt, sulphur; earths and stone; plastering materials, lirne and cement	6,295.97
44.	82: Tools, implements, cutlery, spoons and forks, of base metal;	4,814.86
45.	73: Articles of iron or steel	3,221.01
46.	91: Clocks and watches and parts thereof	2,282.71
47.	98: Miscellaneous National Provisions	707.50
48.	44: Wood and articles of wood; wood charcoal	399.26
49.	49: Printed books, newspapers,	213.37
50.	11: Products of the milling industry; malt; starches; inulin; wheat gluten	124.63
51.	68: Articles of stone, plaster, cement, asbestos, mica or similar materials	108.18
52.	52: Cotton	100.17

Footnote: The General Rate of Duty is estimated at 5% X FOB Value of goods (Value converted to AUD at the exchange rate determined by Australian customs). Customs GST is estimated at 10% x Cost of goods, Insurance, freight + Any Duty Paid