Finance Minister AMA Muhith said Saturday that the United States (US) is perhaps not allowing Bangladesh duty and quota-free access to its market on political grounds.
"They (US) are not allowing duty and quota-free access possibly on political grounds," finance minister AMA Muhith told the reporters at his secretariat office on the day.
Mr. Muhith said: "They never refused to grant duty free and quota free access to for Bangladesh as a least developed country (LDC). All LDCs get the privileges, excepting Bangladesh."
State Minister for Finance and Planning M A Mannan, Economic Relations Division Secretary Mohammad Mejbauddin and Additional Secretary Arastoo Khan were also present at the press briefing.
The finance minister said the US government had never vetoed against the 97 per cent concessions for the LDCs.
"They never vetoed against the 97 per cent duty and quota free access, but they never endorsed it. They think they are yet to reach the stage of offering such trade benefits to [Bangladesh]," Mr. Muhith noted.
Mr. Muhith made this observation after his two week-long visit to the USA and Mexico. He returned to the country April 23.
He said Bangladesh paid nearly one-third of its export value to the USA as duties.
He roughly calculated Bangladesh pays around US$800 million each year as duty for entering its products to the US market.
The finance minister said Bangladesh currently exports readymade garments worth $3.4 billion to the US and duties were being paid for one third of the products.
Mr Muhith said: "As an LDC, refusing duty and quota free by the biggest economy is an unusual matter."
"We've been talking to the US authorities about the issue over the last five years. But they showed no reaction." Mr. Muhith said.
Mr. Muhith said he would prepare a report on the Bangladesh's exports to the US market and its payment in terms of duties.
"We will highlight in the report how much products were exported and how much duties Bangladesh paid over the last 10 years," Mr Muhith said. "Actually the report will be prepared for our own use," he said.
The US suspended the Generalised System of Preferences (GSP) for Bangladesh in June, 2013 after Rana Plaza collapse.
The finance minister said the sanction did not affect Bangladesh's main export, since readymade garments export is done by paying duties.
The finance minister met Charles Rivkin, assistant secretary of state for economic and business affairs to discuss the issue of duty-free access to the US market.
Replying to a question about the Basic Bank, Mr Muhith said he has already received a report prepared by the central bank.
He did not disclose details about the report saying the report indirectly said about the reconstitution of its (Basic Bank) board.
The finance minister, however, said the USA had opposed the emergence of Bangladesh. "Such opposition is rare in the history," he said. The finance minister said relation with the United States is not 'comfortable' politically.
When asked if US-Bangladesh relations were experiencing stress, Muhith said: "It wasn't comfortable."
"They had raised questions about the new Bangladesh government after the January 05 polls."
"They were against Bangladesh from the beginning. "Politically, their (US) pressures are not comfortable, not good either, and beyond norms," he told reporters.
He, however, said the relations between the two countries have always been 'cold' and the government is trying to make it 'soft', at least.
Referring to his talks in the US, the finance minister said he conveyed Bangladesh's position on the January 05 elections.
Muhith said candidates in 153 seats were elected unopposed because BNP was 'foolish enough' not to participate in the polls.
He however said: "The relations in economic fronts with the US are okay."
He said the US State Department is concerned about Professor Yunus.
They wanted to know about the issue of Professor Yunus.
"They claim Mr. Yunus is an honourable man in the USA and they will be pleased if he is given due respect," Mr. Muhith said.
"We told them Professor Yunus is a respected person, we never dishonoured him," he said.
He said the US did not give any money to the Grameen Bank, but always talked about it.
Replying about the Padma Bridge, the finance minister said the work on the Padma Bridge is going on in full swing.
He said work order for the construction of the main part of the Padma Multipurpose Bridge (PMB) would be given in June-July.
About the corruption charges in the Padma Bridge project, Mr. Muhith said after the conclusion of the Canadian case, the Anti-Corruption Commission (ACC) will start the proceedings of the case.
During his visit, Muhith also met officials of the World Bank and the International Monetary Fund (IMF).
The finance minister also met with officials of the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) of the World Bank.
He said the IFC is mobilising nearly US$ 1.0 billion for the country's private sector.
MIGA is guaranteeing $500-$600 million for Ghorashal Power Plant, the minister said.
UNB adds: The finance minister said the government has formulated Grameen Bank rules empowering the central bank to elect nine members of its 12-member board as there had been massive 'undemocratic practices'. "It (election of new directors) will be now conducted by Bangladesh."
He said the Grameen Bank is now a 'well-established' institution and it is promoting microcredit. "We're successfully promoting microcredit."
When asked about allegation of not taking opinion from the directors for the Grameen Bank rules he said, "Why should we take directors' opinion? They're picked up by…they're not really elected."
He also said the cancelled US$ 1.2 billion loan of the World Bank has been 'more or less' restored.
Responding to another question, Muhith said the Bangladesh Bank is a 'fairly independent' institute apparently leaving a question for the governor. "I would ask in which sector the ministry has interfered in? Point it out where and in which case it (ministry) interfered in?