Deal signed to export 8 million pieces of apparels to India
Xinhua | September 17, 2007
Deal signed to export 8 million pieces of apparels to India
Bangladesh signed a deal with India in Dhaka Sunday for exporting 8 million pieces of readymade garments ( RMG) to the neighboring country with zero-tariff access facility, private news agency UNB reported.
The memorandum of understanding (MoU) was signed under the purview of the South Asian Free Trade Area (SAFTA) deal among the South Asian Association for Regional Cooperation (SAARC) member- countries.
As per terms of the MoU, Bangladeshi RMG manufacturers will be allowed to export the volume of apparels in one calendar year " duty-free and without any conditionality of souring of fabric or port restrictions."
Bangladesh Commerce Ministry’s Joint Secretary Abdul Wahab Mian and Indian Deputy High Commissioner Mukta D. Tomar signed the trade deal on behalf of their respective countries.
Officials said the first consignment of RMG exports to India would be sent in January 2008.
The export of 8 million RMG pieces to India are worth 40 million U.S. dollars. And Bangladesh’s annual global RMG exports can fetch 9.2 billion U.S. dollars.
India is the second-largest trade partner of Bangladesh. India annually exports 2 billion U.S. dollars to Bangladesh while Bangladesh exports to India about 300 million dollars.
