Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 1023 Wed. April 18, 2007  
   
Business


Complying with WTO Rules
Import restrictions on salt to go in 2009
Local producers fear adverse impact


The government will lift import restrictions on salt in January 2009 to comply with World Trade Organisation rules, despite opposition from domestic salt producers who fear the impact on the local industry.

"The government has to comply with the WTO provisions," a high official of the Ministry of Commerce said yesterday.

"We have prepared a phase-out plan of lifting import restrictions and some other regulatory restrictions on imports by December 2008," he added.

The decision was taken in an inter-ministerial meeting held at the commerce ministry recently with the additional secretary, Golam Mostakim, in the chair.

Bangladesh has maintained import restriction on 17 products especially salt and poultry products. Although the import restrictions on salt will now be removed, salt imports will be subject to taxes and duties.

Domestic salt producers oppose the removal of the restrictions. "If the import restrictions on salt are lifted, the local industry will face a serious challenge from neighbouring countries," Md. Mijanur Rahman, president, Bangladesh Salt Industries Owners Association, argued.

Before opening up the industry to international competition, the government should have a strategy to protect the local salt producers with more than 1 million people directly involved in the industry, Mijanur Rahman added.

Currently, 90 percent edible salt demand and 70 percent of commercial salt demand are fulfilled by local production.

Neighbouring countries have a strong base of salt production and most of them are more competitive than Bangladesh, Mijanur Rahman said.

During the meeting, a representative from the National Board of Revenue said the local salt industry can be protected by imposing the highest ceiling of import duty, supplementary duty, value added tax and advance income tax on foreign salt.

In contrast the government decided to maintain restrictions on the import of day-old chickens and eggs under a provision of the GATT treaty that allows protection of human life. Restrictions on the import of poultry products were introduced following the discovery of avian influenza. Chickens and eggs are carriers of the influenza. In March, the virus was detected in Bangladesh.