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DAILY NEWS ANALYSIS
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25 June, 2020
2 Min Read
Recently, China has announced tariff exemption for 97% of exports from Bangladesh. Bangladesh had requested China to exempt its export items from tariffs in the background of the economic hardship triggered by the Covid-19 pandemic.
China considered Bangladesh's request and has granted the tariff exemption to Bangladesh on account of its Least Developed Countries (LDCs) status. The move will help Bangladesh to remove the economic impact of the pandemic and also emerge as a possible beneficiary alongside Vietnam and Chile of the U.S.-China trade war.
The supply chain disruption caused by the U.S.-China trade war is likely to be filled by a boost in the export of tariff-exempted goods from Bangladesh. It will also help Bangladesh to reduce its trade deficit with China. As a result of the latest announcement, a total of 8256 goods from Bangladesh will be exempted from Chinese tariffs. Earlier, Bangladesh used to receive tariff exemption for 3095 items under the Asia Pacific Trade Agreement (APTA).
Asia Pacific Trade Agreement
Least Developed Countries
Source: TH
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