Fearing a setback in Bangladesh’s exports of jute to India, a major destination of the items, it has planned to launch a campaign to explore newer markets for jute products in other countries of the world. Bangladesh may face huge economic loss as India recently imposed an anti-dumping law against import of jute produces from our country. But the government took a series of initiatives to protect Bangladesh’s jute markets that included negotiation with New Delhi to put in our efforts to get India reverse its decision.
Bangladesh decided to lodge an appeal against the enactment of the anti-dumping law as part of legal initiatives alongside negotiation at official and political levels. The country’s Prime Minister’s upcoming New Delhi visit could yield a positive result in reversing Indian decision which has been seen as “protectionist measure” by the next door neighbour to favour their own jute business. However, in an effort to negate the possible impact of Indian decision Bangladesh is looking for newer jute markets in different African countries and Australia. To face the possible export loss, the government already has implemented the mandatory packaging law for marketing of six essential products which have ensured use of huge raw jute internally.
Moreover, the government also earmarked another 11 items which to be brought under the packaging law. Concerned officials said that Bangladesh exports around 100 thousand tons of jute goods annually to India. India imposed the restriction as its jute goods producers alleged that Bangladeshi manufacturers got huge subsidies and dumped jute products in the Indian market.
India has recommended imposition of a wide range of specific anti-dumping duties on three types of Bangladeshi jute products – jute yarn, jute sack and jute bag. For jute yarn, Bangladeshi Exporters are likely to face anti-dumping duties between US $19 and US $162 per ton, while the amount is US $352 for per tone of jute Hessian, and amount between US $125 and US $139 for each tone of jute bags. These three jute items now enjoy duty-free access to India under the South Asia Free Trade Agreement (SAFTA).
As India has now imposed anti-dumping duty on imports of jute and jute products from Bangladesh, the government should immediately hold talks with the neighbouring country on the issue. Bangladesh must lodge an appeal against the enactment of the anti-dumping law as part of legal initiatives alongside negotiation at official and political levels. All concerned welcome the present Bangladesh government’s efforts to diversify destinations of jute exports. In fact, Bangladesh should launch a vigorous campaign to explore newer markets for jute products, to combat a setback in its exports to India, a major destination of the items.
The country is expected to face huge economic loss as India recently imposed an anti-dumping law against import of jute produces from our country. It is encouraging to note here, as mentioned earlier, that to face the possible export loss the government already has implemented the mandatory packaging law for marketing of six essential products which have ensured use of huge raw jute internally. Moreover, the government has also earmarked another 11 items which are to be brought under the packaging law. In addition Bangladesh should immediately take measures to manufacture diverse varieties of jute products to meet and create new markets for jute and jute products at home and abroad. All out efforts has to be made to diversify the use of jute that the country produces in abundance for consuming in the domestic market also.   
In the meanwhile Bangladesh has deplored Indian anti-dumping duty on jute products. The Bangladesh Commerce Minister has deplored the recent Indian imposition of anti-dumping duty on Bangladesh jute products, but hoped that the neighbouring country would soon remove all trade barriers to further existing ties between the two countries. The minister said at a meeting with the newly elected body of Dhaka Chambers of Commerce and Industries (DCCI) at his ministry that “It’s a matter of great regret that India has imposed anti-dumping duty on Bangladesh jute goods which are supposed to enjoy duty and quota frees access to it instead”.
India had provided duty and quota free access of all Bangladeshi products, except wine and tobacco, to its market earlier while it has now been imposing anti-dumping duties and realizing 12.5 percent counter veiling duties from many other products. The issue has been raised before New Delhi for discussions and Dhaka would again put it forward for amicable solutions, the commerce minister added. He also assured the business delegation that the present government would take all out measures to facilitate better business environment at home and abroad and would not take any measures that prevent the sectors persistent growth.  
The government needs to encourage the business people to continue their endeavours to bring fortunes for their families, workers and the country together. The government of India has imposed anti-dumping duty on jute products imported from Bangladesh and Nepal, ranging from US $8 to US $350 per ton on January 5, 2017. India’s finance ministry alleged that imported jute goods were suppressing domestic prices. Bangladesh jute goods marked 133.8 per cent export rise in India in 2015-2016 financial year.
Nevertheless, Bangladesh has to opt for further diversification of jute products and jute export destinations to save and expedite the growth of the country’s vital jute sector in the years to come.

 The writer is a retired Professor of Economics, BCS General
Education Cadre