Trade Scenario Between Bangladesh and South Korea

Agreement between the Government of the People’s Republic of Bangladesh and the Government of the Republic of Korea on Trade and Economic Co-operation was signed on 01 July 1973. The main component of this agreement is “The two Contracting Parties shall promote economic co-operation in those fields which will contribute to the development of their economic and shall accord each other, in accordance with the laws and regulations of the Contracting Parties, necessary facilities no less favorable than those accorded to any third country in respect of capital investments including credit, joint ventures and other forms of economic co-operation”. Bangladesh continues to suffer from negative balance of trade with Korea. The Republic of Korea has been one of the most reliable development partners of Bangladesh and has been extending significant cooperation and support to Bangladesh since the early 1970s. It is one of the major trading partners of Bangladesh. There is a steady increase in bilateral trade between the two countries which currently stands at approximately USD 1.68  billion.  However, Bangladesh’s exports to the ROK is only USD 352.82 million and the trade balance is consistently in favor of the Republic of Korea. With its export heavily dependent upon garment and textile, Bangladesh has to import textile and related goods from Korea. Diversification of Bangladesh export item is much needed.  The Republic of Korea has expanded its duty-free, quota free (DFQF ) facilities for Bangladesh. As per the latest expansion, 4802 products have been accorded zero tariff facilities . The expansion of DFQF facility covers a good number of textile and footwear items in which Bangladesh enjoys comparative advantages. Bangladesh’s main exportable item to republic of Korea consists of Leather, Woven garments, Jute manufacturers, Pharmaceutical, Jute yarn and twine, other manufactured goods, Knitwear, Footwear ( leather & sport ), Stainless steel wares, Frozen fish, Cap, Copper wire, Raw jute. Major Imports items from Korea are Vegetable products, Live animals, Mineral products, plastic & Articles thereof, Textiles & Textile articles, Articles of stone, Machinery, & mechanical appliance, Vehicles, aircraft, Optical, Photographic, Footwear, Umbrellas, etc.  The balance of trade position between Bangladesh and Korea from 2009-2010 to 2019-2020  is shown below :       

                                                                                                            (Value in million U.S. $)

Year

Export

Import

Balance

2009-2010

140.28

837.01

(-) 696.73

2010-2011

163.68

1123.60

(-) 959.92

2011-2012

209.71

1550.71

(-)1340.99

2012-2013

250.49

1295.90

(-)1045.41

2013-2014

344.81

1198.90

(-) 854.09

2014-2015

269.03

1214.90

(-) 945.87

2015-16

280.09

1145.00

(-) 864.91

2016-17

238.23

1274.96

(-) 1036.71

2017-18

254.84

1273.80

(-) 1018.96

2018-19

370.65

1315.50

(-)  944.65

2019-20

352.82

1030.30

(-) 677.48

  Source: EPB/ Bangladesh Bank

 

Top 20 Exported Item in South Korea for the year 2020-2021:

Sl HS Code Item Name Amount In USD
1 61091000 61091000: T-Shirts, Singlets And Other Vests, Of Cotton, Knitted Or Crocheted 72,993,835.71
2 61103000 61103000: JERSEYS,PULLOVERS,CARDIGANS,WAISTCOATS.., KNITTED OR CROCHETED OF MAN-MADE FIBRE 34,433,383.76
3 62034200 62034200: Men'S Or Boys' Bib & Brace Trousers, Breeches, Shorts, Of Cotton 29,410,536.38
4 61102000 61102000: JERSEYS, PULLOVERS, CARDIGANS, WAISTCOATS & SIMILAR ART., KNITTED OR CROCHETED OF COT 28,692,938.85
5 62019300 62019300: Men'S Or Boys' Anoraks, Wind Jackets/Cheaters, Etc, Of Man-Made Fibres 23,296,570.64
6 63062200 63062200: Tents Of Synthetic Fibres 21,166,893.47
7 62034300 62034300: Men'S Or Boys' Bib & Brace Trousers, Breeches & Shorts Of Synthetic Fibres 18,370,792.98
8 62046200 62046200: Women'S Or Girls' Trousers, Breeches, Etc, Of Cotton 11,612,916.32
9 62029300 62029300: Woman'S Or Girls' Anoraks, Wind Jackets/Cheaters, Etc, Of Man-Made Fibres 6,675,539.02
10 62113300 62113300: Men's or boys' garments of man-made fibres, nes 6,307,601.90
11 62105000 62105000: Women'S Or Girls' Garments Made Up Of Fabrics Of 59.03, 59.06 Or 59.07 5,847,447.16
12 62052000 62052000: Men'S Or Boys' Shirts Of Cotton 5,544,188.41
13 61109000 61109000: JERSEYS, PULLOVERS, CARDIGANS, WAISTCOATS.. ,KNITTED OR CROCHETED OF OTH. TEXT. MATER 5,503,783.31
14 64041900 64041900: Sports Footwear, With Rubber Or Plastic Soles And Textile Uppers 5,494,670.91
15 62114300 62114300: Women's or girls' garments of man-made fibres, nes 4,883,029.72
16 74040000 74040000: Copper Waste And Scrap 4,736,904.33
17 64029900 64029900: Footwear, Nes, Exl. Covering The Ankle, Of Rubber Or Plastics 4,027,799.58
18 62046300 62046300: Women'S Or Girls' Trousers, Breeches, Etc, Of Synthetic Fibres 3,972,030.72
19 61099000 61099000: T-Shirts, Singlets, Etc, Of Other Textiles, Nes, Knitted Or Crocheted 3,857,176.65
20 64032000 64032000: Footwear With Leather Soles And Straps (Over Instep, Around Big Toe) 3,852,321.51

Total Export Amount: 398,665,717.99 USD 


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