BD working for services waiver, zero tariff in US market

Bangladesh is working in line with the guidelines of the World Trade Organisation (WTO) to have services waiver as well as zero tariff in the US market as it is going to provide preferential treatment to services exports from LDCs.
Foreign Minister Abul Hassan Mahmood Ali expressed the optimism while addressing a luncheon meeting, organised by the American Chamber of Commerce in Bangladesh (AmCham) on Thursday.
He urged the developed countries, including the USA to fulfill their Doha commitment.
"We have been playing our part domestically and in multilateral fora to contribute to development of a rule-based multilateral trading system," said the minister. It would help develop the country's business partnership with the USA and sustain in days ahead, he added.
Replying to a query from the Centre for Policy Dialogue's (CPD) Executive Director Mustafizur Rahman regarding services waiver from the LDCs and Vietnam's zero tariff in the
USA market under Trans Pacific Partnership (TPP), the minister said, "We are following the development with the TPP and have shared our views on the non-inclusive nature of the TPP in its current state."
The foreign minister attended the AmCham's luncheon meeting for the first time on Thursday to speak on 'Leveraging Economic Partnership with USA for Development in Bangladesh.'  
AmCham President Aftab Ul Islam moderated the meeting held at Hotel Sonargaon. The meeting was addressed among others by Dr. Ahmed Badruzzaman, Advisor, Centre for Bangladesh Studies, EC Berkeley, USA, A. Gafur, Executive Director of AmCham and businessman Mainuddin Momen.
The post-Rana Plaza situation, the minister said, has helped further deepen the country's business relations with the US, particularly over labour rights and workplace safety issues.  
"Two years after Rana Plaza, we think there are enough reasons to be optimistic.  We have been able to considerably improve on rights and standard issues and as such the future of the business seems upbeat," said the minister. Besides readymade garments (RMG), the foreign minister also expressed his optimism about Bangladesh's pharmaceuticals in the US market.
"We are now waiting for the US Food and Drug Administration's final concurrence to enter the American market with our pharmaceutical goods," said the minister.
At present, Bangladesh's pharmaceutical industries export their products to 79 countries after meeting local demands. About 97 per cent of domestic needs for medicines are now met locally.
Mr Mahmood Ali said, Bangladeshi shipbuilders, capable of making medium and light vessels, have also joined the fray. Bangladesh now enjoys 1 per cent share of this lucrative business of US$ 200 billion in global market, but holds the potential to earn billions more within the next ten years, he added. Among others, he said, the ICT has also great potential.
Historically, US investment in Bangladesh has focused primarily on energy and power sectors covering roughly 80 per cent of its portfolio. US business presence is also prominent in the financial sector such as insurance, banks and allied services, he added.
"But there are other sectors which may work profitably for both the countries," said Mr Mahmood Ali urging the US companies to invest in Bangladesh as the country offers exciting  investment opportunities for US companies.
He said the Public-Private Partnership initiative of the present government opens up a new window of opportunities to invest in various sectors, particularly infrastructure building projects like highways, subways, mono-rail, power stations and so on.
"As the US investments in Bangladesh diversify, we envisage concomitant developments not only in infrastructure and governance, but also in responsible business practices and CSR (Corporate Social Responsibility)," said the minister.
He also appreciated the contribution of over half a million Bangladesh expatriates in the US in bridging economic, cultural and ideational gaps between the two countries. They contributed immensely to our development by sending invaluable remittance inflow, which stands at approximately US$1.5 billion a year now.  
"However, we have not been able to fully leverage our Diaspora strength in promoting trade and investment opportunities between the two countries," he added.
Earlier, welcoming the guests at the meeting AmCham President Aftab Ul Islam said that the US, the country's largest export destination, has a long-standing supportive relation with Bangladesh.
Last year (2014), Bangladesh exported merchandise worth about US$ 5.2 billion to the US as against its imports of US$ 1 billion.
Mr Islam said an accelerating and strengthening economic partnership between the two countries can contribute a lot to increase the trade volume.
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