Bangladesh has entered into the much-talked about Trade and Investment Co-operation Framework Agreement (TICFA) with the US after more than a decade of wrangling.The signing of the deal in Washington on Monday has raised chances of Bangladesh’s getting back duty-free access to the American market for its products after the suspension of the GSP trade privileges.
The Ministry of Foreign Affairs spokesperson Md Shameem Ahsan confirmed bdnews24.com of the agreement signing
Now a forum will be created which US Ambassador in Dhaka Dan Mozena earlier said would sit at least once a year to identify and purge of the obstacles in the way of increasing trade and investments.
Dhaka was negotiating with Washington to have duty- and quota-free market access to the richest country.
Washington imposed 16 to 32 percent duty on most of the Bangladeshi exportables including readymade garment products.
The US is the single-biggest export destination of Bangladeshi products from where about 30 percent of the total export earnings come.
The cabinet on June 17 cleared the Ticfa draft that Bangladesh felt will reduce chances of unilateralism by the US in areas of trade and investment.
There has been a long-term demand for duty-free access into the US market for Bangladesh’s products, especially readymade garment products.
Bangladesh does not enjoy the privilege despite being an underdeveloped country due to the Ticfa agreement not being signed.
With the treaty signed, American investments in Bangladesh and the export of Bangladeshi products in the US market will be doubled in quantity, according to the US side.
Various leftist groups have claimed if copyright law is implemented, it will turn into an economic and political tool for large companies in the US. The treaty will allow these companies to make unlimited profit.
The US ambassador in Dhaka, however, said it was ‘a very simple’ agreement. “The text will be published today or tomorrow. It does one thing: establishes that forum”.
Acting Deputy US Trade Representative Wendy Cutler and Bangladesh’s Secretary of Commerce Mahbub Ahmed signed the agreement that followed a short meeting, first of the bilateral forum.
The US and Bangladesh had agreed to an action plan in July after the worst-ever factory building collapse that killed more than 1,100 people and witnessed Bangladesh’s GSP privilege suspended.
The ambassador said in the first meeting both sides would identify the issues “they see as obstacles to increased trade”.
According to the Ministry of Commerce, Bangladesh would demand back the earlier GSP privilege for some of its products and the long-standing demand of duty-free market access of its main export item, ready-made garments. – bdnews24.com
