trade blocks between

8/4/2019 Trade Blocks Between

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TRADE BLOCKS BETWEEN:TRADE BLOCKS BETWEEN:

BangladeshBangladesh

ChinaChina

AustraliaAustralia


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BangladeshBangladesh

Initially known as East Pakistan,Initially known as East Pakistan,Bangladesh is a poor countryBangladesh is a poor country

featuring negative trade balancefeaturing negative trade balancesince its independence in 1971. Thesince its independence in 1971. Thecountrys economy experienced vastcountrys economy experienced vastimprovement in the 1990s.improvement in the 1990s.


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IMPORTS AND EXPORTSIMPORTS AND EXPORTS

Primary exports: Garments (totalingPrimary exports: Garments (totaling $12.3 billion$12.3 billion in FY09)in FY09)

Frozen fish and seafoodFrozen fish and seafood

Jute and jute goodsJute and jute goods

LeatherLeather

Primary imports: Machinery and equipmentPrimary imports: Machinery and equipment

ChemicalsChemicals

Iron and steelIron and steel

TextilesTextiles FoodstuffsFoodstuffs

Petroleum productsPetroleum products

CementCement


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AUSTRALIAAUSTRALIA

Australia was ranked 19th for both importsAustralia was ranked 19th for both imports

and exports in the world in 2010. As aand exports in the world in 2010. As a

member of numerous organizations such asmember of numerous organizations such as

APEC, the G20, WTO and OECD, Australia hasAPEC, the G20, WTO and OECD, Australia has

multiple free trade agreements withmultiple free trade agreements with

numerous countries such as the US,numerous countries such as the US,

Singapore, Chile and Thailand.Singapore, Chile and Thailand.


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Primary exportsPrimary exports -- commodities:commodities: coal, iron ore, gold, meat,coal, iron ore, gold, meat,

wool, alumina, wheat, machinery and transport equipmentwool, alumina, wheat, machinery and transport equipment

Primary importsPrimary imports -- commodities:commodities: machinery, computers andmachinery, computers and

office machines, telecommunication equipment and parts;office machines, telecommunication equipment and parts;crude oil and petroleum productscrude oil and petroleum products

The total market for apparel is estimated at US$1.869 million

with

expected annual growth for the sector estimated at 1.5

percent for the period 2005 2006.


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CHINACHINA

As part of China's continuing effort toAs part of China's continuing effort tobecome competitive in the globalbecome competitive in the globalmarketplace, China joined the World Trademarketplace, China joined the World Trade

Organization in 2001. China's entry intoOrganization in 2001. China's entry intothethe WTOWTO has benefited coastal cities,has benefited coastal cities,especially in the southeast. Although aespecially in the southeast. Although aBritish crown colony until its return toBritish crown colony until its return to

Chinese control in 1997, Hong Kong hasChinese control in 1997, Hong Kong haslong been a major maritime outlet oflong been a major maritime outlet ofSouth ChinaSouth China


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Primary Export commodities: electrical goods and otherPrimary Export commodities: electrical goods and other

machinery electrical goods and other machinery, includingmachinery electrical goods and other machinery, including

data processing equipment, apparel, textiles, iron and steel,data processing equipment, apparel, textiles, iron and steel,

optical and medical equipment.optical and medical equipment.

Primary import commodities: oil, optical and medicalPrimary import commodities: oil, optical and medical

equipment, metal ores, plastics and organic chemicals.equipment, metal ores, plastics and organic chemicals.

In 2010, China imports totaled $921.5 billion, down fromIn 2010, China imports totaled $921.5 billion, down from

$1.131 trillion in 2008$1.131 trillion in 2008

In 2010, Exports totaled $1.194 trillion, down from $1.429In 2010, Exports totaled $1.194 trillion, down from $1.429

trillion in 2008trillion in 2008


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FREE TRADE AGREEMENTFREE TRADE AGREEMENT

The FTA Designed for the three countries will focus on theThe FTA Designed for the three countries will focus on the

Apparel and textile industry.Apparel and textile industry.

This will clearly outline the advantages of the agreement to allThis will clearly outline the advantages of the agreement to all

the three countries.the three countries. Apparel and Textile industries are particularly chosen becauseApparel and Textile industries are particularly chosen because

it can be one of the most beneficial areas to the threeit can be one of the most beneficial areas to the three

countries due to the full exploitation of each otherscountries due to the full exploitation of each others

comparative advantages.comparative advantages.

Also the scheme will suggest other commodities that can beAlso the scheme will suggest other commodities that can be

traded within the countries and can meet the demands of thetraded within the countries and can meet the demands of the

nations uplifting their trade performance.nations uplifting their trade performance.


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AdvantagestoBangladeshAdvantagestoBangladesh

As quoted above Bangladesh is one of the major Exporter ofAs quoted above Bangladesh is one of the major Exporter of

apparel with a total export of 12.3 billion USD.apparel with a total export of 12.3 billion USD.

Can export readymade garments, leather jute and jute relatedCan export readymade garments, leather jute and jute related

products to Australia and Chinaproducts to Australia and China The apparel import market in Australia is a a market that hasThe apparel import market in Australia is a a market that has

seen significant growth the past year and has a growth rate ofseen significant growth the past year and has a growth rate of

1.5% every year.1.5% every year.

China is also one of the major exporters of garments toChina is also one of the major exporters of garments to

various countries.various countries.

China will also benefit from the scheme as the labor rates inChina will also benefit from the scheme as the labor rates in

Bangladesh are relatively cheaperBangladesh are relatively cheaper


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Contd.Contd.

Bangladesh can also benefit from the import of ApparelBangladesh can also benefit from the import of Apparel

production machinery and wool from china and Australiaproduction machinery and wool from china and Australia

which specialize in the respective products.which specialize in the respective products.

Other commodities that can be Imported From China:Other commodities that can be Imported From China:electrical goods and other machinery, textiles, iron and steel.electrical goods and other machinery, textiles, iron and steel.

Other commodities exported to china: Frozen Food Products,Other commodities exported to china: Frozen Food Products,

Fish.Fish.

Other commodities that can be imported from Australia: coal,Other commodities that can be imported from Australia: coal,iron ore, gold.iron ore, gold.

Other commodities that can be exported to Australia: FrozenOther commodities that can be exported to Australia: Frozen

food Products and Fish.food Products and Fish.


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Advantagesto AustraliaAdvantagesto Australia

Can import cheap garments of relatively high quality fromCan import cheap garments of relatively high quality fromBangladesh and china.Bangladesh and china.

The apparel market is a growing market in Australia so retailThe apparel market is a growing market in Australia so retailbenefits will be obvious.benefits will be obvious.

Can export high quality wool to china and Bangladesh whichCan export high quality wool to china and Bangladesh whichwill also improve the quality of woolen clothes in all the threewill also improve the quality of woolen clothes in all the threecountries.countries.

Other commodities that can be imported: iron and steel,Other commodities that can be imported: iron and steel,

optical and medical equipment.optical and medical equipment. Other commodities that can be exported: coal, iron ore, gold,Other commodities that can be exported: coal, iron ore, gold,

meat, wool, alumina, wheat, machinery and transportmeat, wool, alumina, wheat, machinery and transportequipmentequipment


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AdvantagestoChinaAdvantagestoChina

Cost advantage in importing garments from Bangladesh andCost advantage in importing garments from Bangladesh and

exporting it further to other countriesexporting it further to other countries

Best quality wool from AustraliaBest quality wool from Australia

Leather From Bangladesh.Leather From Bangladesh. Exporter of textiles, Garment technology.Exporter of textiles, Garment technology.

Can import coal, iron ore, gold from Australia.Can import coal, iron ore, gold from Australia.


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SourcesSources

www.nytimes.comwww.nytimes.com

www.apparelandfootwear.org/pdf/isa0409www.apparelandfootwear.org/pdf/isa0409australia.pdfaustralia.pdf

www.economywatch.comwww.economywatch.com

Made by: Ansh MadaanMade by: Ansh Madaan

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