Trade Scenario Between Bangladesh and United Arab Emirates (UAE)

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Trade Scenario Between Bangladesh and United Arab Emirates (UAE)

Bangladesh and UAE is maintaining cordial diplomatic, economic and business relations since independence. UAE is the first Gulf country which recognized Bangladesh’s independence in 23 March, 1975. More than half a million Bangladeshi expatriates are now living and working in U.A.E which creates a good market for Bangladeshi products. Moreover, both the countries are members of TPS-OIC (Trade Preferential System among the Members States of the OIC). Total trade between two countries in FY 2020-21 was US$ 1809.75 million. But the trade balance between the two countries is heavily in favour of U.A.E. Bangladesh exported goods worth US$ 495.85 mn. to the UAE and imported goods that amounted to US$ 1313.90 million in the FY 2020-2021. The trade balance between the two countries is shown below (Value in Million US$)

Fiscal Year	Export	Import	Balance
2015-16	425.91	583.60	-157.69
2016-17	380.11	818.00	-437.89
2017-18	329.55	897.70	-568.15
2018-19	340.84	1226.20	-885.36
2019-20	294.91	720.00	294.91
2020-2021	495.85	1313.90(P)	-818.05
2021-2022	864.24	1646.80	-782.56
2022-2023	543.71

Major Exportable of Bangladesh to the UAE are:

Woven garments, Knitwear, Vegetables, Jute goods, Jute yarn and twine, Dry food, Frozen fish, Footwear (Leather), Accumulator battery and parts etc. The export statistics of Bangladesh export to the UAE during FY 2020-2021 may kindly be seen at Annexure ‘A’.

Major imports form the UAE into Bangladesh are:

Mineral and Chemical products, prepared food products and Plastic articles thereof, Textile & textile articles etc.

Potential products of Bangladesh for export to the UAE:

1.	Pharmaceuticals;
2.	Sacks & bags;
3.	Ceramic products;
4.	Leather products;
5.	Vegetables;
6.	Goat meat;
7.	Agro processed Foods;
8.	Frozen food;
9.	Spices, etc.

Bangladesh is participating GULFOOD fair and International Apparel & Textile Fair regularly to promote agro-based product to the U.A.E market. Bangladesh is participating in the World Expo Dubai-2020 to project Bangladesh’s development and remarkable achievement and history & culture before the international audience. In order to boost up export from Bangladesh to the UAE, following steps may be taken into consideration:

Recommendations:

(1) Bangladesh may engage with UAE for preferential tariff for Bangladeshi goods to U.A.E market under a Preferential Trade Agreement or signing FTA with GCC;

(2) Bangladesh may consider taking part in trade fairs in U.A.E for the consolidation of existing market and creation of market for new products as there is huge demand of ethnic products because of large presence of Bangladeshi expatriates;

(3) Trade delegations from both the government and private sectors may be exchanged for enhancing the existing trade relations between the two countries;

(4) Initiative may be taken to increase export of the products like Garments, Textile fabrics, Halal food, Leather and Leather goods and Jute goods that have good prospects in U.A.E;

(5) Bangladesh may take initiative to attract UAE entrepreneurs to invest in textile, oil and gas exploration, tourism and infrastructure development sectors in Bangladesh.

(6) Bangladesh may request U.A.E to play proactive role in operationalisation of TPS-OIC, which was signed in 2002, in appropriate forum.

Bangladesh Export to U.A.E

FY 2020-21		Value in US$
AE: United Arab Emirates		495,851,425.8
61: Articles of apparel and clothing accessories, knitted or crocheted	114,470,048.78
62: Articles of apparel and clothing accessories, not knitted or crocheted	111,519,194.62
96: Miscellaneous manufactured articles	56,920,205.36
63: Other made up textile articles; sets; worn clothing and worn textile articles;rags	54,748,645.87
53: Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn	43,522,158.95
07: Edible vegetables and certain root and tubers	28,301,824.75
19: Preparations of cereals, flour, starch or milk; pastrycooks' products	22,301,029.03
12: Oil seeds and oleaginous fruits;	7,778,279.38
64: Footwear, gaiters and the like; parts of such articles	7,429,941.19
09: Coffee, tea, mate and spices	7,306,861.50
85: Electrical machinery and equipment	6,903,799.82
42: Articles of leather; saddlery and harness	4,013,213.23
20: Preparation of vegetables, fruit, nuts or other parts of plants	3,803,975.22
15: Animal or vegetable fats and oils and their cleavage products	3,573,946.07
03: Fish and crustaceans, mollusc and other aquatic invertebrates	2,646,219.84
24: Tobacco and manufactured tobacco substitutes	2,415,942.89
84: Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	2,371,692.70
13: Lac; gums, resins and other vegetable saps and extracts	2,311,422.57
39: Plastics and articles thereof	2,242,701.41
48: Paper or paperboard; articles of paper pulp, of paper or paperboard	1,723,880.53
17: Sugar and sugar confectionery	1,271,669.73
38: Miscellaneous chemical products	1,209,492.23
67: Prepared feathers and down and articles made	951,415.48
46: Manufactures of straw, of esparto or of other plaiting materials;	787,411.23
10: Cereals	761,729.90
30: Pharmaceutical products	698,837.27
82: Tools, implements, cutlery, spoons and forks, of base metal;	663,083.80
69: Ceramic products	397,058.43
90: Optical, photographic, cinematographic,	368,585.51
65: Headgear and parts thereof	367,963.62
94: Furniture;	338,459.53
57: Carpets and other textile floor covering	328,917.38
95: Toys, games and sports requisites; parts and accessories thereof	174,956.92
22: Beverages, spirits and vinegar	174,455.72
52: Cotton	149,613.81
35: Albuminoidal substances; modified starches; glues; enzymes	125,552.78
56: Wadding felts and non wovens; special yarn; twine, cordage, ropes and cables and articles thereof	103,668.00
87: Vehicles others than railway or tramway rolling-stock,	101,572.18
40: Rubber and articles thereof	74,109.22
23: Residues and waste from the food industries; prepared animal fodder.	70,724.89
28: Inorganic chemicals; organic or inorganic compounds	67,658.69
33: Essential oils and resinoid; perfumery, cosmetic or toilet preparations	61,554.34
34: Soap, organic surface active agents, washing and lubricating prep	60,101.88
29: Organic chemicals	57,932.81
72: Iron and steel	47,798.02
74: Copper and articles thereof	43,122.81
32: Tanning or dyeing extracts; tannin and their derivatives;	39,411.81
44: Wood and articles of wood; wood charcoal	28,386.42
70: Glass and glassware	7,648.27
73: Articles of iron or steel	4,245.99
49: Printed books, newspapers,	2,319.59
98: Miscellaneous National Provisions	2,193.72
58: Special woven fabrics; tufted textile fabrics; lace;	1,969.28
41: Raw hides and skins (other then furskins) and leather	1,437.99
21: Miscellaneous edible preparations	1,255.08
60: Knitted or crocheted fabrics	97.16
01: Live animals.	23.58
55: Man-made staple fibres	4.01
06: Live trees and other plants, bulbs, roots, and the like;	1.00
54: Man-made filaments	1.00
81: Other base metals; cements; articles thereof	1.00