Dhaka to press for DFQF access, GSP restoration

Bangladesh will press for duty-free and quota-free (DFQF) access to the US market and the restoration of GSP (generalised system of preferences) facility at the first TICFA (Trade and Investment Cooperation Forum Agreement) meeting to be held in the capital today (Monday), officials said.
"We will raise duty-free, quota-free access to the US market and restoration of GSP facility at the TICFA meeting," Commerce Minister Tofail Ahmed told the media after meeting with the team of United States Trade Representative (USTR) team at his secretariat office Sunday.
Assistant USTR for South Asia Michael J Delaney led the team.
Senior Secretary of the ministry of commerce (MoC) Mahbub Ahmed and Assistant USTR for South Asia Michael J Delaney will co-chair the inaugural TICFA meeting at the Pan Pacific Sonargaon Hotel.
Earlier, Bangladesh and the USA signed the TICFA on November 25, 2013 in Washington. The TICFA meeting was scheduled for April 7-8 last but it was postponed as both the countries were engaged in other business.
Until the suspension of the duty-free access facility under GSP in June last, about 97 per cent of the products originating from Bangladesh used to enjoy duty-free entry into the US market.
The agenda for the meeting will be the current status on the commitment made by the developed nations in extending waiver in trade in services to the least developed countries (LDCs) like Bangladesh at the ninth ministerial meet of the World Trade Organisation (WTO) in Bali in December 2013.
The current US investment position in Bangladesh and how it can be enhanced will also be discussed. The US will raise the issues that include the review of bilateral trade, progress made with the GSP action plan and US investment in Bangladesh.
The US also plans to discuss market access for goods and services, tariff structure of fire, electrical and structural equipment, as Bangladesh will have to import them to ensure workplace safety.
The matters pertaining to public tender specification, insurance of labour, cotton, diabetic drugs, currency exchange and delayed payment and intellectual property rights might come up for discussion at the meeting.
TICFA will also protect and promote our interests in areas of transfer of technology, compulsory licensing including in sectors like pharmaceutical ingredients, biotechnology, energy-related technology transfer and technical assistance for capacity building under the terms of the Intellectual Property Agreement, according experts.
"Bangladesh has to pay nearly 15.62 per cent duty on ready made garment (RMG) items to the US market," the commerce minister said.
Vietnam pays 8.38 per cent duty on export of their products to the US market while Turkey pays 3.57 per cent, Germany 1.16 per cent, Hong Kong 1.25 per cent and India 2.29 per cent.
The US suspended GSP facility to Bangladesh following the Rana Plaza building collapse that had claimed over 1,130 garment workers' lives in April 2013.   
The commerce minister said garment factory disasters in Bangladesh were negatively projected in the world.
"We have fulfilled most of the conditions out of 16 of the USTR for getting back GSP," he said.
About the comment of US Senator Robert Menendez that Western consumers would not buy clothes that are stained with the blood of Bangladesh's workers the commerce minister said: "It is a matter of regret… unexpected. We are astonished. Mr Menendez did not visit Bangladesh… he does not know the real progress we have made in the RMG sector over the last one year".   
Asked whether the finance minister's comment could cast any impact on today's (Monday) TICFA meeting, he said, "Bangladesh has earned its independence at the cost of blood. We will become a middle-income country within the next four years."    
The finance minister told Saturday last the media that the US is not allowing DFQF access possibly on political grounds.
"We had a fruitful meeting. We have the opportunities to increase our bilateral trade and investment through TICFA for our mutual benefits," Assistant USTR for South Asia Michael J Delaney said.  
Bangladesh pays around $ 800 million each year as export duty for its products to the US market.