Cuba Interested in Strengthening Bilateral Trade with Bangladesh

The Bangladesh Bank has granted permission to Sonali Bank and Eastern Bank Limited (EBL) to open nostro accounts in rupee with the State Bank of India and ICICI Bank. This move aims to settle a portion of bilateral trade transactions between Bangladesh and India in rupees, instead of relying on the taka-rupee swap that has been under discussion for months. Under the arrangement, income earned in rupee from exports can be deposited into these accounts and used exclusively for importing goods and services from India.

There is a big difference in Bangladesh's trade statistics with China. The integrated data analysis of the relevant authorities shows that the gap between the two countries' official data on the size of bilateral trade in 2021 was 568 crore 1 lakh dollars. In last year's statistics, this gap increased to 752 crore 87 lakh dollars. Accordingly, in the last two years, the amount of discrepancy in the trade data of the two countries has exceeded 1 thousand 300 crore (13 billion) dollars.

The bilateral trade relationship between Bangladesh and Japan has flourished over the last five decades, benefiting both countries. Japan has become one of Bangladesh's primary trading partners, particularly in the apparel and ready-made garment (RMG) sector, accounting for approximately 83% of Bangladesh's exports to Japan. While there is untapped trade potential, the Comprehensive Economic Partnership and General System of Preference have facilitated trade growth.

Cuba has shown keen interest in enhancing bilateral trade with Bangladesh, building on the existing political relations between the two nations. The Cuban Deputy Minister for Foreign Trade and Investment has requested Bangladesh to send a high-powered trade delegation to initiate this process. With major economic reforms underway in Cuba, including allowing private businesses to operate in most sectors, there are new opportunities for Bangladeshi businesses to explore.

In a remarkable milestone for bilateral trade, the United Kingdom (UK) and Bangladesh have experienced a significant surge, reaching a record trade volume of £4.7 billion ($5.83 billion) in 2022. The Department for Business and Trade in the UK reported a substantial increase of 50.4% compared to the previous year. Bangladesh's thriving readymade garments (RMG) sector played a crucial role, accounting for the majority of the trade.

In a recent workshop, experts emphasized the importance of the Bangladesh government holding "technical negotiations" with the European Union (EU) regarding upcoming Generalized System of Preferences (GSP) regulations. They warned that if the new GSP regulations are implemented in the EU market from next year, Bangladesh's ready-made garment (RMG) sector will lose its tariff facility.