As an elected government now takes office, a strong plea grows for a review of the trade agreement signed between Bangladesh and the United States during the just-past interim regime.
Economists and businesses suggest the newly elected government to take measures on stakeholder consultation to review what they called one-sided deal imposed on the country.
They have also proposed hiring a relevant US-based lobbyist firm to check and balance the deal's amendment conditions, which are mostly in favour of America, from legal perspective.
Beforehand, they suggest better understanding of the deal by businesses, government and other related stakeholders, saying the deal hardly brings any positive impact for the country and its economy.
They also allege the past interim government signed the deal hurriedly just couple of days before the election without any discussion with businesses and other stakeholders.
The suggestions and observations came at a discussion meeting held Tuesday on 'US-Bangladesh Reciprocal Trade Agreement' organised by Bangladesh Chamber of Industries (BCI) at its auditorium in Dhaka.
Speaking there, Research and Policy Integration for Development (RAPID) chairman Dr MA Razzaque said, "The welfare impact of this agreement on Bangladesh is negative as the country is in a disadvantageous position."
Bangladesh exports about US$8.0 billion to the US and value addition ranges between $4.0 and $4.50 billion and there is no reason to see rise in exports, he said about the trade arithmetic.
Expressing concern over duty free-access for many US items without rules-of-origin provision, he said government will lose revenue.
There are provisions that Bangladesh can't provide subsidy and has to inform the WTO, which, according to him, is contradictory and concerning as it assumes that these are being imposed on Bangladesh.
Tensions with other countries will also increase, he said, suggesting finding ways through discussion like extending the time of implementation of the agreement. The new government needs to ratify the deal in the parliament, minimizing tariffs.
Terming the deal 'politically unproductive', Centre for Policy Dialogue (CPD) executive director Dr Fahmida Khatun said the prerequisite for trade is not maintained, win-win situation doesn't exit rather a developed country imposed many conditions on a least-developed country.
"An unelected, nonpolitical government signed the agreement," she said and termed it 'irresponsible task' by the interim government.
"National interest has not been considered and the deal signing should be done by elected government."
South Asian Network on Economic Modeling (SANEM) executive director Dr Selim Raihan raised question over the interim government signing the deal and why not kept the task for elected one.
He thinks the 32-page agreement is just not an agreement, it goes beyond trade -- geopolitics, geo-strategy and US security.
"Unfortunately, there is nothing over Bangladesh economy and security," he told the meet, adding that Bangladesh is offering special treatment to the US by different ways, which is 'unprecedented'.
He also claims WTO rules have been violated in the agreement and raised concern over many clauses, especially related to textiles.
Bangladesh may face bigger challenges in dealing with other countries as they might seek the same facility as agreed to provide to US firms, he notes.
How the new government considers the deal -- whether it has any scope to review the agreement -- as any deviation from the agreement might go back to previous reciprocal tariffs of 37 per cent announced in April last year, he added.
Dr Mustafa Abid Khan, senior fellow of Policy Research Institute of Bangladesh (PRI), said Bangladesh obligation to the US is much higher than that of Cambodia and Malaysia despite only 18 per cent of its export destined to US against 50 per cent and 16 per cent of Cambodia and Malaysia.
"Cambodia and Malaysia have their own rules of origin whereas Bangladesh does not," he said, suggesting careful understanding of amendment clauses of the agreement.
Comparing the agreements of Cambodia and Malaysia with the US, Leathergoods and Footwear Manufacturers and Exporters Association Bangladesh (LFMEAB) president Syed Nasim Manzur said their deals have flexibility while that of Bangladesh is strict obligatory and highly conditional.
He suggests finding measures as to how Bangladesh could address the concerns over conditions and amendment clauses, saying that elected government can look into the issue of ratification of the deal in parliament, being tactical to deal with a superpower, and discuss review.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) former president Fazlul Hoque said Bangladesh produces volume-based products and the reciprocal duty-free access for using US cotton would not increase consumption of US cotton.
Citing example of a US company that ensures use of US cotton through DNA testing in New Zealand, he said the US will provide formula on the use and proof of US cotton consumption and none might undergo the risk of rejection which would be done after the product is made.
He calls on the new government to rethink the issues and take measures to review after discussion with all related stakeholders.
Presiding over the meeting, BCI president Anwar-ul-Alam Chowdhury stressed internal reforms to sustain local businesses competitiveness, saying that many issues, including ports, cost of doing business, are eroding their competitiveness.
He opines that Bangladesh has to be strategic to bring the agreement's clauses in favour of the country and suggests hiring US professional lobbyist firm.
He also stresses taking LDC graduation, EU-India and EU- Vietnam deals, Bangladesh-Japan latest deal into consideration during the discussion and joint efforts to resolve the issues.
BGMEA director Sheikh Hossain Muhammad Mustafiz, among others, also spoke at the meeting.
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