import bangladesh
TRANSCRIPT
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Presentation on
International Trade ofBangladesh
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International Trade
• International trade is theexchange of goods and servicesbetween countries. It gives rise
to world economy in whichprices, supply, demand- all ofthese aect each other and areaected by global events.
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Features of International Trade
• Includes Two or more sovereign countries
• xposes goods and services to foreign countries
• Includes !uying and "elling- Import # xportrespectively
• $lmost every %inds of products are found ininternational mar%et
• Increases e&ciency through "peciali'ation
• ncourages Foreign (irect Investment
• )eads growth of *ross (omestic +roduct
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• Imports are the goods and services thatare bought by residents, governments orbusinesses of a country, but made outsideof the country. They can be shipped, sent
by email, or even hand-carried in personalluggage on a plane.
ost countries would prefer to import less, and
export more
ountries that rely on imports for important
commodities
ountries with higher import levels then need to
also increase their currency reserves to pay for the
IMPORT
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• Imports in !angladesh decreased to /0.12 !(T !illion in"eptember from 20./3 !(T !illion in $ugust of 145.Imports in !angladesh averaged 50.24 !(T !illion from4637 until 145, reaching an all time high of 02.4/ !(T!illion in arch of 142 and a record low of 1.53 !(T!illion in 8ovember of 4637
IMPORT TREND OF BANGLADESH AT AGLANCE
Source: Tradeeconomics.com
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INTERNATIONAL TRADE HISTOR OFBANGLADESH
• Sin!e "#$" Bangladesh has e%&erien!ed a
dra'ati! gro(th)
• "#$"*"##+ , I'&ort (as do-.led !o'&ared to
E%&ort
• Fro' "##"/ E%&ort started to gro(
• Trade .alan!e started i'&ro0ing .-t still
negati0e
•
At &resent/ 12
th
largest E%&ort E!ono'3• Still s-4ers in the area of foreign trade in
So-th Asian region
• Di5!-lties arose .3 o&&osition fro' the
.-rea-!ra!3/ &-.li! se!tor -nions/ and other
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earTotal E%&ort7in .illion 89
Total I'&ort7in .illion 89
De:!it7in .illion89
;++$<;++=
942.44 95.48"")"+
;++=<;++# 945.57 9.11 81)>>;++#<;+"+
947.31 928$)?+
;+"+<;+""
9.6/ 9/8#)+$
;+""<;+";
8;>)?+ 8?2)#;8"")1;
INTERNATIONAL TRADE TREND OFBANGLADESH
Source: Tradeeconomics.com
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941.11
945.11
91.11
95.11
9/1.11
9/5.11
921.11
95.4
9.1192.11
9/.11
9/5.6
942.44945.57 947.31
9.6/92./1
I'&ort*E%&ort Co'&arison7;++$*;+";9
TotalImport:inbillion;
Totalxport:inbillion;
INTERNATIONAL TRADE TREND OFBANGLADESH
Source: Tradeeconomics.com
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7Million @S89
Maor Co''odities
;+"?*;+"> ;+";*;+"?
A'o-nt A'o-nt
@SD7Million @S89
ofTotal
@SD7Million @S89
ofTotal
" Cotton/7all t3&es9 2>;?);
;?
>$?2)"
;1; Mineral f-el/ 'ineral oils ?#2$)2 "$ ;21$)> ">
? N-!lear rea!tors/Boilers/'e!hani!al a&&lian!es
?+$#)#"?
;2++)#">
> Iron and steel "#"2)$ = "12;)= #2 Ele!tri!al 'a!hiner3 and
e-i&'ent"=1=)2
="?+#)>
$1 Ani'al or 0egeta.le fats and
oils"$=")2
=">"=
=
$ Cereals "12;); $ $#?)$ >= Plasti!s and arti!les thereof "2"#)? $ ""1+)# 1# Shi&s/ .oats and oating
str-!t-res"+?+)2
>"++#)?
1"+ Fertilier "+;1); > ""==)? 1
Total ;?;2>)2 "++ "=??2)= "++
COMMODIT ISE IMPORT*BANGLADESH
Source: Bangladesh bank
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+
;+++
>+++
1+++
=+++
"++++
";+++
2>;?);
?#2$)2
?+$#)#
"#"2)$ "=1=)2 "$=")2 "12;); "2"#)?
"+?+)2 "+;1);
>$?2)"
;21$)>
;2++)#
"12;)="?+#)> ">"=
$#?)$ ""1+)#
"++#)? ""==)?
;+";*
;+"?
COMMODIT ISE IMPORT*BANGLADESH
Source: Bangladesh bank
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Cost of i'&ort!o'&arison7 @S8 &er
!ontainer9
;+"+ 8"/?+2)++
;+"" 8"?$+)++
;+"; 8">?+)++;+"? 8">?$)++
;+"> 8"2"2)++
141 144 14 14/ 142 94,51.11
94,/11.11
94,/51.11
94,211.11
94,251.11
94,511.11
94,551.11
94,/15.11
94,/31.11
94,2/1.118"/>?$)++
94,545.11
!ost of i'&ort !o'&arison
COST TO IMPORT (US$ per container)2010-2014
Source: WORLDBANK.ORG
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Bangladesh I'&orts
of goods and ser0i!es7 of GDP9
;+"+ ;")$=
;+"" ;$)2
;+"; ;$)#2
;+"? ;1)$1
;+"> ;2);?
;+"+ ;+"" ;+"; ;+"? ;+">1
5
41
45
1
5
/1
;")$=
;$)2 ;$)#2
;1)$1 ;2);?
IMPORTS OF GOODS AD S!R"IC!S(# o GDP)2010-2014
Source: WORLDBANK.ORG
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Sl no Maor !o-ntriesIn 'illion @S 8
;+"?*;+"> of Total" China $2>+)= ?"
; India 1+?2)2 ;2
? Singa&ore ;;=#)2 #
> Mala3sia ;+>")$ =
2 a&an ";=?)= 21 orea ""#=)# 2
$ Indonesia ""+>); 2
= Brail ##=)+ >
# Tai(an #"#)? >
"+ -(ait #">)1 > TotalJ ;>?;1)? "++
IMPORTS OF %AG&AD!S' (TOP 10 COUTRI!S)
Source: Bangladesh bank
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SLno)
To& 2 I'&ort ite's fro' China 7Million @S89
Co''odit3 gro-& ;+"?*"> of Total;+";*;+"?
ofTotal
"Cotton 7all t3&es9/ !otton 3arn
thread and !otton fa.ri!s"1"=)= ?1 ">+#)1 ?1
;N-!lear rea!tor/ .oilers/
'a!hiner3""1")> ;2 #>")" ;>
?Ele!tri!al 'a!hiner3 and
e-i&'ent#=1); ;; $2?)2 "#
> Man*'ade sta&le :.res >+")1 # >"$ ""
2 nitted or !ro!heted fa.ri!s ?=#)> # ?$$)" "+
TotalJ >22$)> "++ ?=#=)? "++
IMPORTS IT!MS FROM C'IA
Source: Bangladesh bank
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/11
511
311
611
4411
4/11
4511
4311
">+#)1
#>")"
$2?)2
>"$?$$)"
"1"=)=
""1")>
#=1);
>+")1 ?=#)>
;+ ";*;+" ? ;+" ?*;+" >
IMPORTS IT!MS FROM C'IA
Source: Bangladesh bank
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SLno)
To& 2 I'&ort ite's fro' India 7Million @S89
Co''odit3 gro-& ;+"?*"> ofTotal
;+";*;+"?
ofTotal
" Cotton 7all t3&es9/ !otton 3arn ">;")> >+";1+)
">$
; Cereals "+=2)# ?+ >=$ "=
? ehi!les other than rail(a3 ortra'(a3 rolling sto!6
>#$)$ "> ?++)> ""
> &re&ared ani'al fodder ;#?)" = ;>>)# #
2 N-!lear rea!tor ;$=)$ = ?$$)" ">
TotalJ ?2$1)= "++;11#)
2
"++
IMPORTS IT!MS FROM IDIA
Source: Bangladesh bank
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1
11
211
711
011
4111
411
4211
4711
">;")>
"+=2)#
>#$)$
;#?)" 30.3
471.4
>=$
?++)>22.6
?$$)"
14/-42 14-14/
Apart ro5
te+e 6ite5+/
%an7,ae+i5porteIron an
+tee,/ !i8,e
9e7eta8,e+/Or7anicce5ica,+/
Minera,*e,+/
P,a+tic+ an+o on
IMPORTS IT!MS FROM IDIA
Source: Bangladesh bank
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IMPORTS C&ASSIFI!D %:%&OC;GROUP;COMMUIT:
• Other Asian Co-ntries to&&ed the list/ selling goods
(orth Ta6a #=;";)2 !rore of the total i'&ort &a3'ents
d-ring the &eriod -nder re0ie( as !o'&ared to Ta6a
=$#2?)" !rore in the &re!eding 3ear)
• The se!ond highest seller (ere the 'e'.er !o-ntries of
Organiation of Isla'i! Conferen!e 7OIC9 (hi!h
a!!o-nted for an
• The third highest seller (ere the 'e'.er !o-ntries of
ASEAN
• The fo-rth highest seller (ere the 'e'.er !o-ntries of
Asian Clearing @nion 7AC@9
• SAARC/ E@/ OPEC/ NAFTA 'e'.er !o-ntries and Other
E-ro&ean !o-ntries follo(ed in des!ending order of
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IMPORTS C&ASSIFI!D %:%&OC;GROUP;COMMUIT:
Source: Bangladesh bank
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• E%&ort &ro!essing one :EP; is a speci>c type of FT?,
set up generally in developing countries by theirgovernments to promote industrial and commercial exports
• The primary ob@ective of an +? is to provide special areaswhere potential investors would >nd a congenialinvestment climate free from cumbersome procedures.
•
BEPA* The !+?$ is the o&cial organ of the !angladeshgovernment to promote, attract and facilitate foreigninvestment in the +?s.
EP
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n order !o
achie"e ra#id
economic gro$!h
o% !he coun!r& b&
increasing !he
in%lo$ o% %oreign
in"es!men!'
#ar!icularl& !hrough
indus!riali(a!ion's#ecial s!e#s ha"e
been !aken since
)*+, b& se!!ing u#
-#or! /rocessing
0one 1-/02 in !he
coun!r&. There are +
-/0
IMPORTS OF EP
Source: Bangladesh bank
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earA'o-nt inMillion @SD
"##2*#1 ;1""##1*#$ >+;
"##$*#= >#?
"##=*## >#1
"###*++ 112
;+++*+" 1=2
;++"*+; 1;$
;++;*+? $;$;++?*+> ==1
;++>*+2 #2;
;++2*+1 "+1;
;++1*+$ "">>
;++$*+= ";#>
;++=*+# "?+;
;++#*"+ ">">;+"+*"" ;">+
;+""*"; ;"">
;+";*"? ;2+2
;+"?*"> ;#$2
1
511
4111
4511111
511
/111
/511
I'&ort of EP
IMPORTS OF EP
ANN@AL GROTH RATE OF
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A"erage
Annual
Gro$!h Ra!e3
((C*rrent
i5port-Pre9io*+
i5port;Pre9io*+
i5port)
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ANN@AL GROTH RATE OFIMPORT
;++"*+; ;++;*+? ;++?*+> ;++>*+2 ;++2*+1 ;++1*+$ ;++=*+# ;++#*"+ ;+"+*"" ;+""*"; ;+";*"? ;+"?*">
-41=
1=
41=
1=
/1=
21=
51=
"? "?
;"
";
"1
;1
>2
>;
1
*>
;+
Ann-al Gro(th Rate
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• The trade .alan!e, also %nown as the !alance oftrade is the calculation of a countryEs exportsminus its imports.
• The trade balance is a component of a countryEscurrent account, which in turn is a component ofthe balance of payments :!D+;.
•hen a country imports more than it exports, theresulting negative number is called a trade de>cit.hen the opposite is true, a country has a tradesurplus.
BALANCE OF TRADE
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:942.11;
:94.11;
:941.11;
:90.11;
:97.11;
:92.11;
:9.11;
91.11
:944.41;
:97.22;:93./1;
:96.13;
:944.7;
BALANCE OF TRADE
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IMPORT POLIC OF BANGLADESH
Bangladesh i'&ort &oli!3 &la!es r-les/reg-lations and !ontrols on the i'&ort of&rod-!ts)
So'e &rod-!t restri!tions are a&&lied .3go0ern'ent organiations/ (hi!h in!l-de,
•Prohi.ited list
• Restri!ted list
• Freel3 i'&orta.le ite's
All i'&orts '-st .e s-&&orted .3 a letter of
!redit/ e%!e&t for the i'&ort of !a&ital'a!hiner3 and ra( 'aterials for ind-strial-se)
Certi:!ation re-ire'ents for all food&rod-!ts)
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IMPORT POLIC OF BANGLADESH
• Allo(ing registered !o''er!ial i'&orters to
i'&ort (itho-t the need of an i'&ort li!ense• I'&orters '-st lodge a "+ to "++ &er !ent !ash'argin against !o0ering letters of !redit
• I'&ort transa!tions are go0erned .3 reg-lationss&e!i:ed on the I'&ort Poli!3 Order 7IPO9 iss-ed.3 the Chief Controller of I'&orts and E%&orts/
Ministr3 of Co''er!e)• Foreign e%!hange is !ontrolled .3 the
Bangladeshi Ban6 in a!!ordan!e (ith ForeignE%!hange Control &oli!3 allo!ation isad'inistered thro-gh a-thoried :nan!ialinstit-tions
• There is a short list of &rohi.ited goods in!l-ding/'ost se!ond*hand goods)
• Penalties for the s'-ggling of illegal nar!oti!sare se0ere)
• So'e engineering &rod-!ts '-st !o'&l3 (ith
esta.lished te!hni!al standards and re-ire anins e!tion !erti:!ate iss-ed . a re!o nied
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IMPORT POLIC OF BANGLADESH
The 0al-ation 'ethod for i'&ort d-t3 and ta% is CIF
7Cost/ Ins-ran!e and Freight9 I'&ort is also s-.e!t to AT/ S-&&le'entar3 D-t3/
Reg-lator3 D-t3/ Ad0an!e Trade AT/ and Ad0an!eIn!o'e Ta%
Prod-!ts ha0ing net !ost .elo( "+++BDT is not s-.e!tto !-sto' d-t3
Free I'&ort ,
*;++ !igarettes or 2+ !igars or ;;2g of to.a!!oK
*T(o .ottles of al!oholi! .e0erages or " .ottle if nottra0elling for to-risti! &-r&oses 7a&&li!a.le to nonM-sli' tra0elers9
* ;2+'l of &erf-'eK*Gifts -& to the 0al-e of BDT2++*Residents !an i'&ort an -nli'ited a'o-nt of foreign'one3) Non residents !an i'&ort -& to "+++ @SD
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IMPORT POLIC OF BANGLADESH
C-sto's d-t3 D-t3 ranges fro' +* ;2
ad0an!e in!o'e ta%, :0e &er !ent
0al-e*added ta%, :0e to "2 &er !ent
s-&&le'entar3 d-t3, "+ to "2 &er !ent/ also
a&&li!a.le on l-%-r3 ite's)C-sto's d-ties are le0ied on all i'&orts e%!e&t,
• generators
• IT e-i&'ent
• ra( !otton
• te%tile 'a!hiner3• !ertain t3&es of 'a!hiner3 -sed in irrigation and
agri!-lt-re
• ani'al feed -sed .3 the &o-ltr3 ind-str3
• !ertain dr-gs and 'edi!al e-i&'ent)
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IMPORT POLIC OF BANGLADESH
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E FINDINGS
Bangladesh is largel3 de&ending -&on
i'&orts
Sho-ld .e alert to 'ini'ie the trade de:!it
Sho-ld .roaden the e!ono'i! a!ti0it3/ li6e
di0ersif3ing e%&orts
O0erall i'&ort &oli!3 is not so &rote!tionist
Sho-ld .e stri!t to i'&ort &oli!ies in order to
&rote!t the do'esti! ind-stries The go0ern'ent sho-ld !ontin-e to s-&&ort
the gro(th of do'esti! de'and and &ri0ate*
se!tor led in0est'ent