Brazil positive on FTA with Bangladesh, mulls investment
Brazilian Ambassador to Bangladesh Joao Tabajara de Oliveira Junior (right) meeting Commerce Minister Tipu Munshi on May 6, 2019. Photo Courtesy: PID
South American nation Brazil is positive towards signing a free trade agreement (FTA) with Bangladesh, which is expected to boost apparel exports to the Latin American country.
Brazilian Ambassador to Bangladesh Joao Tabajara de Oliveira Junior conveyed the positive response while meeting Commerce Minister Tipu Munshi on May 6, 2019, while discussing on the potential impacts of the FTA on bilateral trade, said a ministry release.
The issue of an FTA with Brazil, a promising apparel export destination, came up last October when Bangladesh was looking for options to penetrate into the vastly potential South American apparel market as a diversification of export destination.
Currently, high tariff barriers are curbing export of Bangladesh’s apparel products in Brazil.
On this note Commerce Minister Munshi said that the FTA, if signed, will give a boost to bilateral trade and benefit businessmen of both countries. “There is wide scope to increase Bangladesh’s business with Brazil,” he told reporters at a post-meeting brief.
READ MORE: FTA proposed to MERCOSUR
He said, the government will soon launch efforts to engage into widening business with Brazil after discussing the issue with apparel manufacturers and Federation of Bangladesh Chambers of Commerce and Industries (FBCCI), the apex trade body of Bangaldesh.
“Businessmen of both countries are eager to begin business. Apart from apparel, this FTA will boost exports of Bangladesh’s shoe, fish and some other products,” he said.
Brazilian Ambassador Oliveira Junior reflected on the same and told reporters: “There is wide scope of increasing Bangladesh’s business with Brazil. Bangladesh’s apparel product is in big demand in Brazilian market. There’s tremendous potential here.”
“Our businesses are eager to do business in Bangladesh. If both Bangladesh and Brazil can bring down the tariff rates, there is wide scope for business. Bangladesh is a good place for investment. Brazilian investors are thinking of investing here,” he said.
Among others present during the meeting were commerce ministry’s Additional Secretary (FTA) Md Shafiqul Islam and Additional Secretary (exports) Tapan Kanti Ghosh.
Notably, Bangladesh has already pitched for a free trade agreement (FTA) with Brazil-included South American trade bloc MERCOSUR, placing a formal letter of interest.
The lucrative destination of MERCOSUR, an association of six Latin American countries including Argentina, Brazil, Paraguay and Uruguay, contains a huge market of 300 million consumers – the fifth biggest market in the world – with a combined GDP size of US $4 trillion.
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