Future prospects of trade relations between Bangladesh and Canada

The relationship between two countries has grown steadily over the last 44 years and is projected to grow progressively in the future

Canada, a tested friend of Bangladesh, recognized the nation immediately after independence on 14 February 1972 and is now one of the seven largest export destination countries. Both countries have been experiencing long lasting-bilateral ties since then. Based on core mutual values of democracy and pluralism, bilateral relationships are mainly focused on development cooperation including trade and investment, regional security and people-to-people contacts. The  of government Canada has also been engaged in socio-economic development in Bangladesh through Canadian International Develop­ment Agency (CIDA) in the field of governance, primary education, health, agriculture, water manage­ment and women empowerment. The relationship between two countries has grown steadily over the last forty-four years and is projected to grow progressively in the future.
The trade relationship between Canada and Bangladesh has grown dramatically over the last decade. The value of bilateral trade has become more than eight times from US $ 170.10 million in FY 2002-03 to $1480 million in FY 2014-15.
In the FY 2014-15, Bangladeshi imports to Canada were worth US$ 900.12 million. The statistics point to the fact that the volume of Bangladesh-Canada bilateral trade stood at US $ 2 billion in 2016 at the first time and aims to achieve US $5 billion by 2021.
Major export items from Bangladesh to Canada include apparels, footwear and leather goods, frozen fish, agricultural products, etc. The major import items to Bangladesh include vegetable products, chemical products, machineries and electrical equipment, transport equipment, mineral products, pulp of wood, etc.
At present, Bangladesh export to Canada concentrates approximately 95% in apparels products. The country has many exportable items but only a few items contribute. In order to exploit the full advantage of Canadian GSP, the country must go for product diversification. Hence, it requires the collaboration with Canadian counterparts for diversifying exportable products in favor of sustainable trade and commerce.
Bangladesh has been witnessing over 6% GDP growth rate consistently for almost over the last one decade and estimated to achieve 7.20 percent in FY 2016-17. This presents a considerable opportunity for foreign investment. If Canadian investors are informed about the affable business environment that prevails in Bangladesh and then they would be interested in different profitable sectors in Bangladesh.
Nation branding may be an important tool to attract Canadian FDI in Bangladesh.
Canada may invest here as the government of Bangladesh is setting up 100 special economic zones (SEZs) in different parts of the country by offering a wide range of incentives for foreign investors including 100 percent equity share in particular. Moreover, Bangladesh still enjoys duty-free market access to 52 countries including the European Union. Therefore, there is an enormous prospect for Canadian investors to invest in Bangladesh. The potential investment sectors for Canadian investors can be food and agro processing, petroleum, IT, software, energy and power including renewable energy, light engineering, leather, ocean-based initiatives, shipbuilding, services and tourism sectors. Moreover, Bangladesh would like to concentrate on its ocean-based development initiatives. As Canada has a recognized blue economy, it would be an investment opportunity for them also.
However, to accrue greater benefits of trade for both Bangladesh and Canada, we have to establish common accreditation board for acceptance of standards of Bangladeshi products. For facilitating trade, investment and communication, direct air service from Dhaka to Ottawa need to be launched.   Participating in trade fairs and attending different discourses are also important for enhancing trade and investment. In this case, visa procedure needs to be simplified for business people.
It may be mentioned that the geographic location that Bangladesh holds is perfect for global trade with a very suitable access to the international sea and air routes. Likewise, the competitive advantage of the labour force of Bangladesh in South Asian regional standards may also stimulate the foreign investors. After all, the outstanding friendship that prevails between the two countries helps Canadian inventors to expand their businesses in Bangladesh and Canada may take all these advantages by investing here in a big way.  

The writer is Assistant Secretary (Planning and Research) of the FBCCI and former Assistant Research Economist to Vice Chancellor of Uttara University. He may be contacted at: [email protected]

Future prospects of trade relations between Bangladesh and Canada

The relationship between two countries has grown steadily over the last 44 years and is projected to grow progressively in the future

Canada, a tested friend of Bangladesh, recognized the nation immediately after independence on 14 February 1972 and is now one of the seven largest export destination countries. Both countries have been experiencing long lasting-bilateral ties since then. Based on core mutual values of democracy and pluralism, bilateral relationships are mainly focused on development cooperation including trade and investment, regional security and people-to-people contacts. The of government Canada has also been engaged in socio-economic development in Bangladesh through Canadian International Development Agency (CIDA) in the field of governance, primary education, health, agriculture, water management and women empowerment. The relationship between two countries has grown steadily over the last forty-four years and is projected to grow progressively in the future. The trade relationship between Canada and Bangladesh has grown dramatically over the last decade. The value of bilateral trade has become more than eight times from US $ 170.10 million in FY 2002-03 to $1480 million in FY 2014-15. In the FY 2014-15, Bangladeshi imports to Canada were worth US$ 900.12 million. The statistics point to the fact that the volume of Bangladesh-Canada bilateral trade stood at US $ 2 billion in 2016 at the first time and aims to achieve US $5 billion by 2021. Major export items from Bangladesh to Canada include apparels, footwear and leather goods, frozen fish, agricultural products, etc. The major import items to Bangladesh include vegetable products, chemical products, machineries and electrical equipment, transport equipment, mineral products, pulp of wood, etc. At present, Bangladesh export to Canada concentrates approximately 95% in apparels products. The country has many exportable items but only a few items contribute. In order to exploit the full advantage of Canadian GSP, the country must go for product diversification. Hence, it requires the collaboration with Canadian counterparts for diversifying exportable products in favor of sustainable trade and commerce. Bangladesh has been witnessing over 6% GDP growth rate consistently for almost over the last one decade and estimated to achieve 7.20 percent in FY 2016-17. This presents a considerable opportunity for foreign investment. If Canadian investors are informed about the affable business environment that prevails in Bangladesh and then they would be interested in different profitable sectors in Bangladesh. Nation branding may be an important tool to attract Canadian FDI in Bangladesh. Canada may invest here as the government of Bangladesh is setting up 100 special economic zones (SEZs) in different parts of the country by offering a wide range of incentives for foreign investors including 100 percent equity share in particular. Moreover, Bangladesh still enjoys duty-free market access to 52 countries including the European Union. Therefore, there is an enormous prospect for Canadian investors to invest in Bangladesh. The potential investment sectors for Canadian investors can be food and agro processing, petroleum, IT, software, energy and power including renewable energy, light engineering, leather, ocean-based initiatives, shipbuilding, services and tourism sectors. Moreover, Bangladesh would like to concentrate on its ocean-based development initiatives. As Canada has a recognized blue economy, it would be an investment opportunity for them also. However, to accrue greater benefits of trade for both Bangladesh and Canada, we have to establish common accreditation board for acceptance of standards of Bangladeshi products. For facilitating trade, investment and communication, direct air service from Dhaka to Ottawa need to be launched. Participating in trade fairs and attending different discourses are also important for enhancing trade and investment. In this case, visa procedure needs to be simplified for business people. It may be mentioned that the geographic location that Bangladesh holds is perfect for global trade with a very suitable access to the international sea and air routes. Likewise, the competitive advantage of the labour force of Bangladesh in South Asian regional standards may also stimulate the foreign investors. After all, the outstanding friendship that prevails between the two countries helps Canadian inventors to expand their businesses in Bangladesh and Canada may take all these advantages by investing here in a big way. The writer is Assistant Secretary (Planning and Research) of the FBCCI and former Assistant Research Economist to Vice Chancellor of Uttara University. He may be contacted at: [email protected]