Photo: Collected-
Md Mizanur Rahman Himadri-
Bangladesh’s trade relations Mexico—the second largest economy in Latin America and one among the 15 largest economies in the world — are showing robust growth with economies of the both countries clocking positive growths with tremendous resilience, according to business leaders, diplomats and policy-makers
Bangladesh’s export to Mexico recorded at some 200 million US dollars during July-December period of 2022-23 compared 133 million US dollars during the period of July-December of 2021-22, marking 122 per cent growth.
However, Bangladesh’s total export to Mexico during July-June 2021-22 fiscal year recorded at 295 million US dollars, according to the Export Promotion of Bureau (EPB) of Bangladesh.
Meanwhile, Mexico has expressed its reiteration to expand trade relations with Bangladesh as both the countries see great potentials in the automobile, pharmaceuticals, chemical and FinTech sectors.
Federico Salas Lotfe, Ambassador of the Embassy of Mexico in New Delhi, India expressed such interest during a meeting with Mostofa Azad Chowdhury Babu, senior vice president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) this week at its office.
During the meeting, the Mexican ambassador said, “Economic relations between Bangladesh and Mexico are still small. By exploring and diversifying trade, both sides would be benefited. I think the automobile, pharmaceuticals, chemical, and FinTech sectors have huge potentials.”
Federico Salas Lotfe also said Mexico is one of the major suppliers of the global automobile market. “We are interested in exchanging Mexico’s experience and transferring technology to build the capacity of Bangladesh in automobile manufacturing. I think it would be a good initiative. Bangladeshi entrepreneurs can also establish businesses in Mexico,” he added.
Babu informed the Mexican delegation about the Bangladesh Business Summit which is going to be organized in March this year on the occasion of the 50th founding anniversary of the apex trade body FBCCI. He mentioned that the FBCCI is Expecting active participation from the Mexican side, said a press release.
He said several plenary sessions will be held during the upcoming three-day Business Summit in March where trade and investment potentialities in Bangladesh will be discussed.
CEOs from international companies, business leaders, analysts, and top officials of different countries and organizations are going to attend the mega event.
He sought active participation of the Mexican officials and business community in the event.
Babu also said that FBCCI will provide all kinds of support to Mexican businessmen in expanding trade and investment in Bangladesh.
FBCCI Director Syed Sadat Almas Kabir, SM Shafiuzzaman, Abu Hossain Bhuiyan Ranu, secretary general Mohammad Mahfuzul Hoque, and other members of the delegation were also present at the meeting.
Experts and government officials are eying expanded trade relations with Mexico by penetrating into the second largest economy of Latin America next year.
Meanwhile, Bangladesh Ambassador to Mexico Abida Islam while talking to this correspondent said Bangladesh’s trade relations with Mexico will grow substantially in the coming days.
Bangladesh Ambassador to Mexico Abida Islam, a career diplomat of the 15th BCS said .
Bangladesh should diversify its export basket to penetrate into Mexican markets with products like jute and jute goods, leather goods, pharmaceuticals and high-end readymade garments, she also said.
The country is the third largest economy in North America and is swiftly becoming a modernized nation with more industrial and service sectors to maintain and promote economic growth nationwide.
“Considering the size of the population and the buying capacity of Mexico, Bangladesh has high prospect of increasing trade relations with the Latin American market” said the Bangladeshi envoy.
“The trade volume between Bangladesh and Mexico was hovering around $300 million in recent past. Exports to Mexico are over $290 million, while Latin America’s exports to our market are less than $10 million.”
A top exporter of the Bangladesh Garments Manufactures and Exporters Association (BGMEA) while talking to this correspondent said that export to the USA and Latin American markets are going substantially during the current fiscal year.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Director Mohiuddin Rubel said, “Even though the overall export in our major markets has shown a positive growth trend, trade dynamics will see a sharp shift in coming days in the post-Covid world and amid geo-political tension created by the Ukraine conflict.”
“The ongoing recession foreshadows a depressing outlook for the global economy in future which is concerning for us. So, we should not be overwhelmed, rather need to be cautiously optimistic,” he added.
Meanwhile, a special delegation of the high officials of the Mitsubishi UFG Financial Group or MUFG Bank, a popular Japanese bank and one of the largest banks in the world, met with the FBCCI leaders at the FBCCI office this afternoon.
The delegation of MUFG Bank was led by the bank’s managing director and head of FI (South Asia) Gaurav Bhagat. The bank authorities have expressed interest in doing more work in Bangladesh in the coming days.
Besides highlighting the potential sectors of Bangladesh, the FBCCI leaders highlighted the importance of foreign investment for the country. FBCCI leaders also urged the MUFG bank authorities to open up a branch in Dhaka.
FBCCI senior vice president Mostofa Azad Chowdhury Babu, vice president Md Amin Helaly, FBCCI director Syed Moazzem Hossain, Shomi Kaiser, Dr Nadia Binte Amin, Syed Sadat Almas Kabir, Abul Kasem Khan, Abu Hossain Bhuiya Ranu, BARVIDA secretary general Mohammed Shahidul Islam were also present at the meeting.
With a population of almost 130 million, a rich cultural history and diversity, and abundant natural resources, Mexico is among the 15 largest economies in the world and the second largest economy in Latin America. The country has strong macroeconomic institutions, and it is open to trade.
Mexico’s GDP was $2.493 trillion at the end of 2022 in puchasing power partity terms. World Economics has developed a database presenting GDP in Purchasing Power Parity terms with added estimates for the size of the informal economy and adjustments for out-of-date GDP base year data. World Economics estimates Mexico’s GDP to be $3.378 trillion – 36% larger than official estimates, according to the World Economics Research, London.
The International Monetary Fund (IMF) recently raised its output growth estimate on emerging markets for this year, with projections now showing the economic slowdown in the region may have bottomed out in 2022, on the back of China reopening, a resilient India and unexpected growth in Russia.
On its most recent update to the World Economic Outlook, the IMF sees growth in emerging market and developing economies at 4.0% in 2023, 0.3 percentage point higher than its October projection, and 0.1 percentage point higher than the 3.9% estimate for 2022. For 2024, the projection is for a 4.2% expansion.
Brazil and Mexico, Latin America’s largest economies, are both upwardly revised in their 2023 economic growth by 0.2 and 0.5 percentage point, respectively. For Latam and the Caribbean, the overall increase in the growth estimate was just 0.1 percentage point, to 1.8%.
