Dhaka to sign APTA services pact by June
Nazmul Ahsan | Wednesday, 16 March 2011
Nazmul Ahsan
The country will a sign trade in services deal with several Asian and south-east Asian nations by June after the law ministry lifted its reservation about a key content of the proposed pact, officials said Tuesday. Law ministry had in August said the content of the accord to be signed as part of the Asia Pacific Trade Agreement (APTA) violates the country"s Constitution and advised the government not to be a party to the deal. The ministry was particularly worried about a clause of the planned agreement which bars the signatory countries from striking any deal with other countries that contains provisions contrary to the APTA. Officials said an inter-ministerial meeting at the law ministry cleared the treaty last week after an advisor to the prime minister allayed the concern of the law ministry, saying the deal did not go against the Constitution. Law minister Barrister Shafiq Ahmed chaired the meet. Economic affairs advisor to the PM Moshiur Rahman, foreign secretary Mijarul Kayes, commerce secretary Ghulam Hossain and other high officials attended it. "The adviser and other officials told the meeting that the draft agreement contained nothing that breaches the Constitution. They said the clause in question is more of a general statement," a commerce ministry official said. "The deal called APTA Framework Agreement on Trade in Services will now be placed to the Cabinet this week for approval," he said, adding the government plans to sign the accord by June this year. The APTA is a relatively new economic grouping in Asia but has enormous economic muscle. But its members -- Bangladesh, India, China, Sri Lanka, South Korea and Thailand -- make up three-fourths of the Asian population. This would be first trade in services agreement Dhaka has planned to sign with leading Asian nations. Experts say the pact can pave the way for entry of Bangladesh service firms in the five other fast booming economies. But officials said the law ministry"s objection had almost scuttled the agreement and could force the country out of the pact as the governments of five other member nations have already approved the draft treaty. A law ministry official, however, defended his ministry"s stand, stating that the said clause contravenes the article 144 of the Bangladesh Constitution. The article 144 reads: "The executive authority of the Republic shall extend to the acquisition, sale, transfer, mortgage and disposal of property, the carrying on of any trade or business and the making of any contract." Commerce ministry, however, differed with the law ministry"s observations. It held several meeting with law officials to minimize the differences. But all efforts became futile, a top commerce ministry official. Failing to secure vetting from the law ministry, commerce officials sent the draft pact to the Cabinet for approval in January this year. They even included the law ministry"s reservation in the summary placed before a Cabinet meeting. A cabinet meeting led by prime minister Sheikh Hasina, however, refused to approve the draft agreement without receiving a nod from the law ministry. The PM assigned her advisor Moshiur Rahman to find an acceptable solution, officials said. The Standing Committee on Asia Pacific Trade Agreement (APTA) comprising trade officials from six member-nations finalised the draft agreement in February last year. Trade and commerce ministers of the six east and south Asian countries were expected to sign the final agreement in Thai capital of Bangkok in July, 2010. However, the signing was deferred due to Bangladesh"s failure to secure a Cabinet nod. Other members have completed all formalities related to signing of the agreement almost a year ago, the commerce ministry official said. Earlier the APTA members signed two agreements: Framework Agreement on Trade Facilitation and Framework Agreement on the Promotion, Protection and Liberalisation of Investment in December 2009 in Seoul. According to the negotiated draft pact on APTA Framework Agreement on Trade in Services, the member countries will establish and improve infrastructural facilities in their respective countries relating to improving service sector, extend cooperation in joint production, marketing and purchasing arrangements and facilitate research and development on service areas. The deal aims at liberalising intra-member trade in the group and deepening service ties in a bid to boost efficiency and competitiveness, diversify production capacity and supply and distribution of the service firms. "We are now happy as the law ministry is now convinced on the contents of the proposed agreement, thanks to the interference from the Advisor," the official said.
The country will a sign trade in services deal with several Asian and south-east Asian nations by June after the law ministry lifted its reservation about a key content of the proposed pact, officials said Tuesday. Law ministry had in August said the content of the accord to be signed as part of the Asia Pacific Trade Agreement (APTA) violates the country"s Constitution and advised the government not to be a party to the deal. The ministry was particularly worried about a clause of the planned agreement which bars the signatory countries from striking any deal with other countries that contains provisions contrary to the APTA. Officials said an inter-ministerial meeting at the law ministry cleared the treaty last week after an advisor to the prime minister allayed the concern of the law ministry, saying the deal did not go against the Constitution. Law minister Barrister Shafiq Ahmed chaired the meet. Economic affairs advisor to the PM Moshiur Rahman, foreign secretary Mijarul Kayes, commerce secretary Ghulam Hossain and other high officials attended it. "The adviser and other officials told the meeting that the draft agreement contained nothing that breaches the Constitution. They said the clause in question is more of a general statement," a commerce ministry official said. "The deal called APTA Framework Agreement on Trade in Services will now be placed to the Cabinet this week for approval," he said, adding the government plans to sign the accord by June this year. The APTA is a relatively new economic grouping in Asia but has enormous economic muscle. But its members -- Bangladesh, India, China, Sri Lanka, South Korea and Thailand -- make up three-fourths of the Asian population. This would be first trade in services agreement Dhaka has planned to sign with leading Asian nations. Experts say the pact can pave the way for entry of Bangladesh service firms in the five other fast booming economies. But officials said the law ministry"s objection had almost scuttled the agreement and could force the country out of the pact as the governments of five other member nations have already approved the draft treaty. A law ministry official, however, defended his ministry"s stand, stating that the said clause contravenes the article 144 of the Bangladesh Constitution. The article 144 reads: "The executive authority of the Republic shall extend to the acquisition, sale, transfer, mortgage and disposal of property, the carrying on of any trade or business and the making of any contract." Commerce ministry, however, differed with the law ministry"s observations. It held several meeting with law officials to minimize the differences. But all efforts became futile, a top commerce ministry official. Failing to secure vetting from the law ministry, commerce officials sent the draft pact to the Cabinet for approval in January this year. They even included the law ministry"s reservation in the summary placed before a Cabinet meeting. A cabinet meeting led by prime minister Sheikh Hasina, however, refused to approve the draft agreement without receiving a nod from the law ministry. The PM assigned her advisor Moshiur Rahman to find an acceptable solution, officials said. The Standing Committee on Asia Pacific Trade Agreement (APTA) comprising trade officials from six member-nations finalised the draft agreement in February last year. Trade and commerce ministers of the six east and south Asian countries were expected to sign the final agreement in Thai capital of Bangkok in July, 2010. However, the signing was deferred due to Bangladesh"s failure to secure a Cabinet nod. Other members have completed all formalities related to signing of the agreement almost a year ago, the commerce ministry official said. Earlier the APTA members signed two agreements: Framework Agreement on Trade Facilitation and Framework Agreement on the Promotion, Protection and Liberalisation of Investment in December 2009 in Seoul. According to the negotiated draft pact on APTA Framework Agreement on Trade in Services, the member countries will establish and improve infrastructural facilities in their respective countries relating to improving service sector, extend cooperation in joint production, marketing and purchasing arrangements and facilitate research and development on service areas. The deal aims at liberalising intra-member trade in the group and deepening service ties in a bid to boost efficiency and competitiveness, diversify production capacity and supply and distribution of the service firms. "We are now happy as the law ministry is now convinced on the contents of the proposed agreement, thanks to the interference from the Advisor," the official said.