Dhaka open to any move 'alternative to TIFA'
Saturday, 13 March 2010
Sheikh Shahariar Zaman
The government would welcome any proposal alternative to the Trade and Investment Framework Agreement (TIFA) as the current administration is not ready to sign TIFA with the US over three thorny issues, sources said.
The US Ambassador to Bangladesh James F Moriarty at a meeting recently said an alternative to TIFA could be a US-Bangladesh Economic and Trade Cooperation Forum.
"We welcome any initiative on an alternative forum and if the government receives any formal proposal, it will look into it with a positive attitude," Commerce Minister M Faruk Khan has told the FE.
The government is not feeling comfortable with some TIFA points including those concerning environment, labour and intel lectual property rights, said the minister, who is responsible for signing and initiating international agreements on trade and commerce.
"Before signing the TIFA, the contentious issues need to be discussed threadbare to protect the interest of the country," he asserted.
The US is the single biggest trading partner of Bangladesh and Dhaka will always maintain good trade relations with Washington, he added.
The government would continue negotiations with its counterparts in the US to get duty-free access of all its products, Mr Faruk said.
Currently, the US administration allows duty-free access of 97 per cent of Bangladeshi items exported to the US market and 3.0 per cent products including RMG come under duty.
On an average, the US importers pay 17 per cent duty on Bangladeshi RMG products.
The Bangladesh-US bilateral trade crossed $4 billion in 2009 against $1 billion in 1992.
A senior commerce ministry official said Bangladesh would have to concede some benefits to the US administration to maintain good relations in the present-day global trade regime.
"Prime Minister Sheikh Hasina has visited India and also signed trade agreements with the country. She will go to China this month and is expected to sign similar deals with that economic powerhouse," he said.
In this backdrop, Dhaka needs to offer something to Washington, so that it does not feel alienated, he explained.
"Possiblely, the Prime Minister could visit Washington this year," he added.
US ambassador Moriarty recently said his country could set up a bilateral US-Bangladesh Economic and Trade Cooperation Forum, which might be an alternative to TIFA.
He outlined a range of areas, including export, import, agricultural development and food security, saying that cooperation in those areas can help strengthen economic relations between the two countries.
He cited great potential for the two countries to partner in initiatives in agriculture and food security to increase productivity, technical innovation, trade, agri-business and value addition.
The government would welcome any proposal alternative to the Trade and Investment Framework Agreement (TIFA) as the current administration is not ready to sign TIFA with the US over three thorny issues, sources said.
The US Ambassador to Bangladesh James F Moriarty at a meeting recently said an alternative to TIFA could be a US-Bangladesh Economic and Trade Cooperation Forum.
"We welcome any initiative on an alternative forum and if the government receives any formal proposal, it will look into it with a positive attitude," Commerce Minister M Faruk Khan has told the FE.
The government is not feeling comfortable with some TIFA points including those concerning environment, labour and intel lectual property rights, said the minister, who is responsible for signing and initiating international agreements on trade and commerce.
"Before signing the TIFA, the contentious issues need to be discussed threadbare to protect the interest of the country," he asserted.
The US is the single biggest trading partner of Bangladesh and Dhaka will always maintain good trade relations with Washington, he added.
The government would continue negotiations with its counterparts in the US to get duty-free access of all its products, Mr Faruk said.
Currently, the US administration allows duty-free access of 97 per cent of Bangladeshi items exported to the US market and 3.0 per cent products including RMG come under duty.
On an average, the US importers pay 17 per cent duty on Bangladeshi RMG products.
The Bangladesh-US bilateral trade crossed $4 billion in 2009 against $1 billion in 1992.
A senior commerce ministry official said Bangladesh would have to concede some benefits to the US administration to maintain good relations in the present-day global trade regime.
"Prime Minister Sheikh Hasina has visited India and also signed trade agreements with the country. She will go to China this month and is expected to sign similar deals with that economic powerhouse," he said.
In this backdrop, Dhaka needs to offer something to Washington, so that it does not feel alienated, he explained.
"Possiblely, the Prime Minister could visit Washington this year," he added.
US ambassador Moriarty recently said his country could set up a bilateral US-Bangladesh Economic and Trade Cooperation Forum, which might be an alternative to TIFA.
He outlined a range of areas, including export, import, agricultural development and food security, saying that cooperation in those areas can help strengthen economic relations between the two countries.
He cited great potential for the two countries to partner in initiatives in agriculture and food security to increase productivity, technical innovation, trade, agri-business and value addition.