BD, US sign TICFA deal

Bangladesh and the USA signed the much-talked-about Trade and Investment Cooperation Forum Agreement (TICFA) deal in Washington on Monday aiming to bolster bilateral trade and investment, officials said.

Bangladesh's commerce secretary Mahbub Ahmed and United States Deputy Trade Representative Wendy Cutler signed the deal on behalf of their respective governments at US local time 10.00 am.

Mr Mahbub confirmed signing of the deal in a message to the FE from Washington.

"We've just signed the TICFA," he said in the message.

United States Trade Representative Michael Froman made brief remarks and presided over the signing ceremony. US Assistant Secretary of State Nisha Desai Biswal was also present in the event.

The trade and investment agreement is signed after eleven years of negotiation which started in 2002.

The cabinet in June this year gave go ahead and assigned the ministry of commerce (MoC) to handle the affairs relating to signing of the TICFA deal.

The TICFA is considered as a platform for discussing bilateral trade and investment issues. Officials said signing of the deal will help bolster trade and investment cooperation between the two nations.

Various left-leaning political parties, during the last couple of days, have been demonstrating in the capital protesting the government's move to sign the deal.

The US has so far signed such agreements with 92 countries and regional associations. The US has long been pursuing Bangladesh to sign the deal.

Under the deal, a joint forum would be formed which will meet at least once a year. The forum, after signing the deal, is scheduled to hold its first meeting in the same venue.  

Mr Ahmed, before leaving Dhaka for Washington, told the FE that Bangladesh would press for preferential market access of its apparel items and revival of the generalised system of preferences (GSP) in the first meeting of the forum.

"We'll request the US in the first TICFA forum meet to grant preferential market access for our apparel items and revive the GSP facility for our other products in its market as soon as possible," he said.

Mr Ahmed said the US wanted to discuss cooperation under the TICFA in the maiden meeting after the deal.

He was found to be optimistic that the US administration would give a green signal by next month about revival of the GSP facility following signing of the deal.

Executive Director of Centre for Policy Dialogue (CPD) Dr Mustafizur Rahman told the FE Monday that there was pressure from the USA to sign the deal. South Asian countries like Nepal, Sri Lanka and Pakistan have signed the deal much earlier, but India did not.

"The impact of signing the deal will depend on how it is going to be used. Bangladesh will definitely remain under pressure on various issues like labour rights, and intellectual property rights after signing the agreement," he said.

Since the deal is being signed Mustafizur Rahman said Bangladesh will have to check how benefits can be reaped.

"Revival of GSP facility and pursuing the US for duty free market access of Bangladeshi apparel should be our prime agenda after singing the pact," he suggested.

Executive Director of Policy Research Institute of Bangladesh Ahsan H. Mansur told the FE, TICA will be a regular forum to discuss bilateral issues.

"If there is any pressing issue, Bangladesh or US will be able to raise those in the forum meetings," he said adding that now the government gets a platform to discuss the GSP and duty free market access of apparel items.      

Mr Mansur said US has signed TICFA like pacts with many countries. "I am not seeing any negative output for the country from the deal."