Mexican companies are increasingly showing keen interest in investing in different sectors of Bangladesh, said Ambassador of Bangladesh to Mexico Abida Islam in an interview with The Bangladesh Post recently.
She said the upward trend in Bangladesh's exports to Mexico is a positive development for both the 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 testament to the quality and competitiveness of Bangladeshi goods”, she added.
Ambassador Abida Islam assumed the charge of the office of the Ambassador of Bangladesh to the United Mexican States on the 29th August, 2021. Prior to her present diplomatic assignment, she served as the Ambassador of Bangladesh to the Republic of Korea since December 2017.
Replying to a set of queries, Ambassador Abida elaborately described the bilateral relationship, trade investment scenario, trade gap between the two countries and also informed about the moves underway to further strengthen the relationship, bilateral trade and investment.
Excerpts for the valued readers of The Bangladesh Post
Bangladesh Post: Bangladesh’s export to Mexico in recent years is showing an upward trend. How do you evaluate this trend?
Abida Islam: The upward trend in Bangladesh's exports to Mexico is a positive development for both the 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.
Bangladesh Post: Some Mexican companies are showing deep interest in investing in Bangladesh. Do you have any developments regarding this?
Abida Islam: 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 team 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.
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 materialise and the impact they will have on the economy of Bangladesh
Bangladesh Post: 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 about the Mexican views about Bangladesh?
Abida Islam: Bangladesh has made significant progress in terms of socio-economic 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.
Bangladesh Post: What is the present trade volume between Bangladesh and Mexico? What is our target to reach bilateral trade within the next five years?
Abida Islam: 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 USD 7.46 million against Bangladesh's export of USD 431.16 million, making the total bilateral trade worth USD 438.62 million. However, in 2022, Mexico's exports to Bangladesh increased to USD 9.56 million against Bangladesh's export of USD 631 million, making the total bilateral trade worth USD 640.56 million.
The main exports from Bangladesh to Mexico in 2022 were ready-made garments (US$ 507 million), footwear (US$ 18.4 million), leather and leather goods (US$ 7.49 million), sporting goods and other products (US$ 6.52 million), and plastic goods (US$ 1.56 million).
A recent map of Mexico's International Trade Center (ITC) has identified a number of 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.
Bangladesh Post: How Russia-Ukraine conflict has hit the economy and Mexico?
Abida Islam: This has created a sense of insecurity in the world leading to price hikes of 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.
Profile:
Ambassador Abida Islam assumed the charge of the office of the Ambassador of Bangladesh to the United Mexican States on 29th August 2021. Prior to her present diplomatic assignment, she served as the Ambassador of Bangladesh to the Republic of Korea since December 2017.
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).