A two-member United States Trade Representative (USTR) team is now in the capital to review progress made so far in implementing Trade and Investment Cooperation Facilitation Agreement. TICFA aims at making business between the two countries easier.
Deputy Assistant US Trade Representative for South and Central Asia Mara M Burr is leading the team which is scheduled to hold the formal meeting with senior commerce ministry officials today (Tuesday) in the city.
Commerce Secretary Hedayetullah confirmed the FE about today's meeting but refrained from detailing the agenda of discussion. He said media will be briefed only after the meeting.
"TICFA must deliver tangible benefits to Bangladesh. We are paying over $800 million duty to the US on RMG exports annually at the rate of 16 per cent. Contrary to it, Vietnam is paying at the rate of 8.0 per cent," BGMEA Vice President Shahidullah Azim said demanding that Bangladesh must get duty free market access now under TICFA framework.
Informed sources said the TICFA meeting is scheduled to review progress in implementing the deal. Both sides would try to identify the obstacles and the possible means to remove those.
The commerce secretary said representatives of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Export Promotion Bureau (BEPB), Bangladesh Export Processing Zones Authority (BEPZA), Board of Investment (BOI) and other relevant agencies will take part in the meeting.
The meeting is taking place in the backdrop of the first TICFA meeting held in April this year in Dhaka following the signing of the deal in November last year.
BGMEA sources indicated that restoration of GSP facility may also figure prominently at the meeting. Md Shahidullah Azim told the FE Monday that he had briefed the delegation at an informal meeting two days back about progress on safety measures in garment factories.
Commerce secretary Hedayetullah, US Ambassador Dan W Mozena, Political officer at US embassy Joshua Hatch, BEPZA Executive Vice Chairman Maj. Gen. Habibur Rahman, ILO Representative Tumo Poutianer were, among others, present.
Azim said he felt that the USTR team is also taking stock of field level progress on safety issues at garment factories. The US government agency is scheduled to prepare a report on compliance of the safety issues this month.
He said the next GSP review by the US administration is scheduled for December and Bangladesh is already way ahead in fulfilling compliance measures relating to fire and building safety.
He said workplace inspections carried out by the Accord and the Alliance so far found only around 2.0 per cent factories to be accident prone. Factory owners are taking corrective measures to run those units.
He said the Alliance had already completed inspection of 600 factories in July while the Accord is expected to complete inspection of 900 factories by September this year. The ILO-run National Action Plan is inspecting another 300 factories and is scheduled to complete the work by December this year.
The government has already reformed the labour law which led to the registration of 186 trade union bodies in garment factories in 2013 while registration of another 90 trade unions is in the pipeline. Workers at any factory can now make registration of their trade union bodies with signatures of 30 per cent of workers.
The government and the industry are working hard to convince the US authorities to restore the GSP while demanding duty free market access of RMG products to the US. This is time TICFA must deliver, Azim said.
