Analysis of Agri-Food Trade Structures
To Promote Agri-Food Trade Networks
In the Islamic Countries
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health, and the environment. However, exporters’ consulted often identified non-tariff market
access barriers as one of the major obstacles that hindering expected export growth of
Bangladesh’s agricultural exports and request for more active government initiatives to ensure
market access for agri-food export items. Government policymakers mainly highlighted
liberalization of agricultural trade policy regime which has been reflected in the gradual
reduction of the number of products in the sensitive list (presently 21 HS-4 digit products face
import bans based on social, moral, security, religious and environmental grounds and only 9
products are subject to conditional exports), However, agri-food importers pointed that the
applied para-tariffs in the form of Supplementary Duty and Regulatory Duty on many import
items are on the rise and impeding the realization of full benefit from the liberalized agri-food
trade regime.
Lack of Harmonization and Mutual Recognition of Standards with other OIC Members
Exporters and importers face challenges with regards to products’ quality and standards since
Bangladesh does not have any mutual recognition agreements for the acceptance of its product
standards, testing, and certification with any it’s trading partners, which hampers bilateral
trade, especially agricultural trade with the OIC members. (Only India recently signaled possible
acceptance of Bangladesh’s testing certification of 21 food items.)
Capacity Constraints in Conformity Assessment and Standards Agencies
Stakeholders identified capacity constraints, for example, lack of adequate testing facility
including required equipment, accessories and chemicals, as well as the shortage of qualified
manpower in BSTI offices and in Plant Quarantine Wings of the Department of Agricultural
Extension (DAE) are negatively affecting both the exports and imports of agricultural products.
The Plant Quarantine offices in many land ports suffer from capacity constraints to conduct
some tests, such as the organochlorine, organophosphate tests, and maximum residue limit
(MRL) tests. Import permits of agricultural products are only issued from the DAE Dhaka office,
resulting additional costs and delays for imports of agricultural products.
Poor Infrastructure and Inadequate Facilities at Major Ports and Connecting Highways
Infrastructural deficiency is one of the main obstacles affecting agricultural trade reported by
the agri-food exporters and importers. Lack of adequate infrastructure and inefficient
operational procedures followed at the country’s main port (Chittagong Port, though which
more than 90% of country’s trade takes place) have often resulted in severe congestion of cargo
vessels and containers at the outer anchorage of Chittagong Port. The port also lacks necessary
container handling equipment which often causes undesirable delays in cargo handling and
transshipment. Dhaka International Airport also suffers from inadequate cold storage, cool-
chain facilities, and loose container loading sheds which severely affect exports and imports of
vegetables and other agro-processed products and foods through air cargo.
Barriers to border clearance of traded goods
Agri-food traders reported that the processing of import and export consignments clearance at
the point of entry and exit by Customs and other government agencies is often affected primarily
due to: lack of reliable, fast and uninterrupted internet connectivity causing frequent
interruptions with the Automated System for Customs Data (ASYCUDA) World server; lack of