Ambassador of Bangladesh to Mexico Abida Islam-
Md Mizanur Rahman Himadri-
Mexican companies showing interest to invest in Bangladesh, Ambassador of Bangladesh to Mexico Abida Islam said in an interview with The Metropolis.
Abida Islam expressed this view while talking to this correspondent recently. She assumed the charge of the office of the Ambassador of Bangladesh to the United Mexican States on 29th August 2021. Before her present diplomatic assignment, she served as the Ambassador of Bangladesh to the Republic of Korea since December 2017.
“Yes, there has indeed been recent interest from Mexican companies in investing in Bangladesh. According to the Bangladesh Investment Development Authority (BIDA), Mexican companies have expressed interest in several sectors in Bangladesh, including textile and apparel, information technology, and energy,” she mentioned.
Bangladesh’s economy will be the 28th largest in 2030 and 25th largest in 2035, the UK’s Centre for Economics and Business Research (CEBR) has projected in a recent report.
Austria now enjoys the same ranking, the centre said. It has been said Bangladesh’s economic ranking in 2021 will be identical— 41stout of 193 countries— to that of 2020.
Bangladesh ranked 59thin 2010 and 48thin 2015. The CEBR in its report also said by 2025, Bangladesh’s ranking will improve significantly to 34th, the position currently held by the African country Egypt.
“Bangladesh will be the 25thlargest economy, which is now being ranked by Thailand, one of the Asian giant economies, by 2035 when its economy will cross 1.0 trillion US dollar mark at current prices.”
The interview is given below:
Bangladesh’s export to Mexico in recent years is showing an upward trend. How do you see this trend?
The upward trend in Bangladesh’s exports to Mexico is a positive development for both countries. Mexico is a significant market for Bangladeshi goods, particularly textiles, garments, leather, jute, and other products. The trend indicates that there is a growing demand for Bangladeshi products in the Mexican market, which is a testament to the quality and competitiveness of Bangladeshi goods.
This trend also reflects the success of Bangladesh’s efforts to diversify its export basket and expand its reach in global markets. Bangladesh has been making concerted efforts to move away from its dependence on the textile sector and expand its exports in other areas such as pharmaceuticals, leather, jute, light engineering, and IT. The increasing trend in exports to Mexico is a clear indication that these efforts are bearing positive results.
Moreover, the two countries have been working to increase bilateral trade and investment, which has helped to boost the volume of exports from Bangladesh to Mexico.
As the bilateral trade relationship between the two countries continues to grow, there is significant potential for further expansion and cooperation in the future.
Some Mexican companies are showing deep interest in investing in Bangladesh. Do you have development regarding this?
Yes, there has indeed been recent interest from Mexican companies in investing in Bangladesh. According to the Bangladesh Investment Development Authority (BIDA), Mexican companies have expressed interest in several sectors in Bangladesh, including textile and apparel, information technology, and energy.
In 2022, Mexican retail department store COPPEL visited Bangladesh and expressed interest in importing home appliances from the country. COPPEL has been importing RMG from Bangladesh for over a decade, indicating a positive relationship between the two countries. Additionally, representatives from Mexican textile companies attended the Bangladesh Denim Expo in November 2022, showing interest in importing textiles from the country. This is a positive sign for Bangladesh’s textile industry, which is one of the country’s largest sectors and a significant contributor to its economy.
In the pharmaceutical sector, a Mexican company called Avimex has recently entered the Bangladesh market, highlighting further investment opportunities for Mexican companies in Bangladesh. Furthermore, the Embassy of Bangladesh is actively promoting trade and investment opportunities through seminars, festivals, and exhibitions, indicating the country’s growing attraction to foreign investors.
Overall, the recent interest from Mexican companies in investing in Bangladesh is a positive indication of the country’s growing economy and the potential for future investment opportunities. The development could help Bangladesh expand its trade relations with Mexico and provide opportunities for job creation, economic growth, and technology transfer. However, it remains to be seen how these investments will materialize and the impact they will have on the economy of Bangladesh
Bangladesh became a middle-income country in 2021. The ‘dream Padma Bridge’ was opened in June 2022. The Karnaphuli Tunnel is near completion. The government is improving roads and highways. New hotels and motels have been constructed in Bangladesh in the last 10 years. Can you share the Mexican views about Bangladesh?
Bangladesh has made significant progress in terms of socioeconomic growth and infrastructure development. Its transformation into a middle-income country, the opening of the Padma Bridge in 2022, and the near completion of the Karnaphuli Tunnel are significant achievements that demonstrate the country’s commitment to infrastructure development. The government’s efforts to improve roads and highways and the construction of new hotels and motels also show that Bangladesh is taking steps to promote tourism and attract foreign investment.
The fact that Mexico’s Foreign Minister announced the opening of an embassy in Bangladesh by the end of 2023 is further evidence of Mexico’s interest in Bangladesh and its growing economy. This move
indicates that Mexico is looking to establish stronger ties with Bangladesh and potentially explore opportunities for bilateral trade and investment. The opening of the embassy in Bangladesh is likely to provide a platform for further dialogue and collaboration between the two nations.
It is also worth noting that Bangladesh and Mexico have historically had relatively limited trade and economic ties, despite both being members of the World Trade Organization. However, the opening of the embassy and other recent developments could signal a new era of cooperation between the two countries.
What is the present trade volume between Bangladesh and Mexico? What is our target to reach bilateral trade within the next five years?
Bangladesh’s exports to Mexico have been steadily increasing since the opening of the diplomatic mission in 2012. In 2021, Mexico’s exports to Bangladesh were 7.46 million US dollars against Bangladesh’s export of 431.16 millionUS dollars, making the total bilateral trade worth 438.62 millionUS dollars. However, in 2022, Mexico’s exports to Bangladesh increased to 9.56 million US dollars against Bangladesh’s export of 631 millionUS dollars, making the total bilateral trade worth 640.56 millionUS dollars.
The main exports from Bangladesh to Mexico in 2022 were ready-made garments (507 millionUS dollars), footwear (18.4 millionUS dollars), leather and leather goods (7.49 millionUS dollars), sporting goods and other products (6.52 millionUS dollars), and plastic goods (1.56 millionUS dollars).
A recent map of Mexico’s International Trade Center (ITC) has identified several Bangladeshi products with export potential from Bangladesh to Mexico, such as cotton t-shirts and vests, knit/crochet, men’s trousers and cotton shorts, women’s trousers, and cotton shorts. In addition, Mexico has a demand for golf equipment from Bangladesh. Also, ceramic and pharmaceutical products, jute products, bicycles, and tricycles for children have export potential to this country.
Mexico is a large and growing market for Bangladeshi products. There is potential to increase the export volume from Bangladesh to Mexico by many folds, which can further boost the bilateral trade relationship between the two countries. Overall, the upward trend in Bangladesh’s exports to Mexico is a positive sign for the Bangladeshi economy and can help establish stronger trade and investment relations between the two countries.
In absence of a commercial wing at the Embassy, no export target has been set by the Bangladesh Ministry of Commerce.
How has the Russia-Ukraine conflicthit the economy and Mexico?
This has created a sense of insecurity in the world leading to price hikes for essential commodities. The ongoing conflict between Russia and Ukraine has had a significant impact on the global economy, including Mexico. The impact on the Mexican economy can be seen in several areas, including commodity prices, trade, and daily life.
One direct impact of the conflict has been a rise in commodity prices, particularly those related to raw materials. Sanctions imposed on the production of raw materials have caused international prices to surge, which has affected Mexico’s economy. Metals such as nickel, aluminum, and gold, as well as grains like wheat and corn, have been particularly affected. Additionally, Mexico could experience a short-term shortage of fertilizers due to Russia’s significant exports of fertilizers and the sanctions imposed on their production, negatively affecting the country’s agriculture industry, which is a significant contributor to Mexico’s economy.
Furthermore, the conflict has also impacted global trade, with some countries imposing sanctions on Russia. This has disrupted trade flows and created uncertainty in the global market. Although Mexico’s exports to Russia are relatively small, the impact on the global trade environment can indirectly affect Mexico’s economy.
The conflict has also impacted oil and gas prices globally, which could indirectly affect Mexico’s economy. Russia is a significant producer of oil and gas, and any disruption to its production can cause prices to rise globally. Mexico is also a significant producer of oil, and any rise in prices could positively impact the country’s economy.
Moreover, the conflict has already impacted the daily lives of people in Mexico. The prices of some products, such as fuel and energy, have risen, leading to inflation and an increase in the cost of living for Mexican people. This could also have a ripple effect on areas such as tourism, which could be negatively affected.
In conclusion, the long-term impact of the conflict on the Mexican economy remains to be seen, and it will depend on how the conflict evolves and the actions taken by global players.
Ambassador Abida Islam is a career diplomat and joined the Bangladesh Foreign Service in November 1995. She has served in different capacities in several wings of the Ministry of Foreign Affairs, Dhaka which includes International Organizations(1995-1996), Far East(1996), South-East Asia(2007), Americas-Pacific & Counterterrorism (2007), and Administration(2000-2001 and 2007-2009).
She has served in various positions in Bangladesh Missions in London (2001-2004), Colombo(2004-2006), and Brussels (2009-2012). She also served as the first female Deputy High Commissioner (Head of Mission) of Bangladesh in Bangladesh Deputy High Commission in Kolkata, West Bengal, India (2012-2014).
Abida Islam has represented Bangladesh at several International Conferences, Seminars, and Summits on a variety of issues. In the capacity of Director-General, she was in charge of the International Organization (2014-2015) as well as the Americas Wing (2015-2017) of the Ministry of Foreign Affairs, Dhaka.
