China plans to increase duty benefits to Bangladesh, allowing free access to one percentage point more Bangladeshi products to its market in order to reduce the trade imbalance between the two countries.

As per a Daily Star report, around 97 per cent of goods produced in Bangladesh were granted duty-free access in July 2020. The package covers nearly 9,000 Bangladeshi goods.

The proposed 98 per cent will cover more than 9,000 locally produced goods. However, the duty benefit will cease to exist once Bangladesh makes the status graduation from a least developed country to a developing one in 2026. However, it could be retained through a trade deal.

The tariff free quota will be expanded by 1 percentage point as soon as possible, said Li Jiming, Chinese ambassador to Bangladesh.