BD to sign investment accord to join big Asian economies

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Nazmul Ahsan
Bangladesh is going to join the big Asian economies under a Framework Agreement on Promotion, Protection and Liberalisation of Investment to help boost foreign investment flow to the country and also its external trade in holistic and rule-based ways, trade officials said.
The high performing Asian economic like those of China, Korea and India, along with countries like Sri Lanka, Laos and Bangladesh that are also signatories to the Asia Pacific Trade Agreement (APTA), will sign the historic Investment agreement on December 15 in South Korean capital Seoul. The commerce ministers of member countries will attend the signing ceremony there on behalf their respective countries, sources said.
The officials of the Ministry of Commerce (MoC) said the APTA Standing Committee, comprising trade officials of the member countries in their latest round of negotiations finalised the draft deal in Bangkok.
An inter-ministerial meeting, held recently in the Ministry of Commerce (MoC), approved the draft agreement. This will be placed before the Cabinet Division soon for approval by the cabinet, a high official in the MoC said.
"The agreement will be a major tool to attract foreign direct investment from major Asian countries, particularly from China and Korea as it would provide protection of investment to the investors from APTA member countries," another top official in the MoC told the FE.
"The country's external trade is expected to increase manifold following signing of the groundbreaking agreement," he added.
Commerce Minister Faruk Khan will attend the Ministerial Council
meeting in Seoul as the head of Bangladesh delegation.
The APTA was formerly known as the Bangkok Agreement, with officials holding meetings from time to time to discuss trade and economic ties among the six Asian nations.
According to the agreement, member countries will enact new laws to give full security and protection to investments to be made in the countries that are its members.
The contracting countries under the framework agreement will not practise any unreasonable or discriminatory measures, impairing the operations, management, maintenance, disposition or liquidation of investment to be made by member countries, said the agreement.
The member countries of the agreement will protect and uphold the principles of Intellectual Property Rights, in line with the spirit of the World Trade Organisation (WTO), the agreement said further.
No restriction could be imposed on transfer of capital, profit to be derived from such investment, royalties and other income, said the agreement referring to basic criteria of foreign investment.
All sorts of movable and immovable products, share, debenture and stock will be considered as investment, the agreement said.
The member countries of the Investment Pact will promote free flow of investments and encourage transfer of technology among participating countries, according to the regional investment agreement.
"The least developed countries (LDCs) will be provided flexibility, in terms of observing and maintaining the main features of the agreement," a trade diplomat said.
"Technical cooperation relating to attracting investment and diversifying export-oriented sectors, will be provided by member countries of the big economies to the LDCs and Sri Lanka," he added.