Bangladesh seeks duty-free export to Nepal

In an attempt to boost bilateral trade, the Bangladeshi government is discussing the possibility of duty-free export of cement and other commodities with the Nepalese government.

In total, Bangladesh has demanded duty-free access of 56 items and commodities to Nepal, including cement, construction materials, plastic goods and certain food items. In return Nepal demanded duty-free import of machine-processed writing paper, according to the Ministry of Commerce.

According to official Nepalese documents, a total of 13 cement plants with a combined 8450tpd capacity have been established in the country, with a further 10 plants under construction. These established plants operate using domestically-sourced limestone. The document also states that the country’s balance of payment is expected to experience a negative effect in the coming years, as a result of increased imports compared to low export volumes.

However, the construction of roads and electrical transmission lines leading up to mining areas has resulted in a rise in cement production volume, with domestic cement production now reaching 4Mta (80 per cent of annual demand). This rise in production is in turn causing a decline in cement imports.