Prickly labour issue in Ticfa softened in latest draft deal
Tuesday, 10 April 2012
Nazmul Ahsan
The Ministry of Commerce (MoC) has submitted the final draft of the proposed Trade and Investment Cooperation Framework Agreement (Ticfa) between Bangladesh and the USA to Prime Minister Sheikh Hasina for approval after a cabinet committee on the much-talked-about deal had okayed it.
The contentious labour issues included in the original draft of Ticfa have been softened in the latest draft agreement giving way to a win-win situation for both the parties, a top trade official said.
The MoC submitted the proposal to the Prime Minister's Office (PMO) on Wednesday last, two days after getting the go-ahead from the cabinet committee on Ticfa, headed by Finance Minister AMA Muhith, sources said.
"We have submitted the new draft of the Ticfa deal to the PMO to get approval of Prime Minister Sheikh Hasina. The MoC is expecting directives from the Prime Minister soon on the long-standing issue," Commerce Secretary Md Ghulam Hossain told the FE on Monday.
"The country's trade and investment issues with the US will get special attention from the US administration if the proposed deal is signed between the two countries," he added.
It is learnt that the conditions set by the US on the labour issue to be included in the Ticfa deal have been softened to avoid criticism from the private sector, particularly from the readymade garments exporters of the country.
The US has agreed on the latest stance of Bangladesh on this particular issue, a senior trade official said.
Earlier, the United States Trade Representative (USTR) Office sought to include words like "freedom of association of workers, effective recognition of workers' right to engage in collective bargaining, elimination of child labour and elimination of discrimination in respect of employment and occupation" in the Ticfa deal.
The final draft agreement, which the US has agreed upon, as claimed by senior commerce ministry officials, has included words such as "to protect the fundamental labour rights, adherence to ILO (International Labor Organisation) conventions and internationally recognised practices on labour issues".
"We have succeeded in excluding words like "freedom of association of workers, collective bargaining and elimination of discrimination in respect of employment" in the final draft agreement," a high official at the MoC told the FE.
"The US administration has agreed upon the latest restructure of words on labour issues as we also respect and are committed to implementing the labour rights in the country as practised internationally," he added.
Once the Ticfa is signed, a Joint Economic Commission between Bangladesh and the US will be formed to hold bilateral discussion on trade and investment issues, sources said.
Ghulam Hossain said currently no appropriate forum existed between the two countries for discussing bilateral issues resulting in no tangible progress in the long-standing demand of Bangladesh for getting duty-free market access of its products to the US market.
"We will have a target for pursuing our agenda through Ticfa," Ghulam Hossain told the FE.
"Bilateral meetings, be they yearly or biennial, will be held between the two governments under the platform of Ticfa to tap unexplored potential and benefits," he added.
Officials concerned said, the draft Ticfa agreement would be placed to the Ministry of Law for vetting after approval came from the Prime Minister. With the agreement vetted, the Ticfa would then be placed to the cabinet division for approval.
The United States is the single-largest export destination of Bangladesh with an annual export earning of over $6.0 billion or about 40 per cent of Bangladesh's total annual export.
The Ministry of Commerce (MoC) has submitted the final draft of the proposed Trade and Investment Cooperation Framework Agreement (Ticfa) between Bangladesh and the USA to Prime Minister Sheikh Hasina for approval after a cabinet committee on the much-talked-about deal had okayed it.
The contentious labour issues included in the original draft of Ticfa have been softened in the latest draft agreement giving way to a win-win situation for both the parties, a top trade official said.
The MoC submitted the proposal to the Prime Minister's Office (PMO) on Wednesday last, two days after getting the go-ahead from the cabinet committee on Ticfa, headed by Finance Minister AMA Muhith, sources said.
"We have submitted the new draft of the Ticfa deal to the PMO to get approval of Prime Minister Sheikh Hasina. The MoC is expecting directives from the Prime Minister soon on the long-standing issue," Commerce Secretary Md Ghulam Hossain told the FE on Monday.
"The country's trade and investment issues with the US will get special attention from the US administration if the proposed deal is signed between the two countries," he added.
It is learnt that the conditions set by the US on the labour issue to be included in the Ticfa deal have been softened to avoid criticism from the private sector, particularly from the readymade garments exporters of the country.
The US has agreed on the latest stance of Bangladesh on this particular issue, a senior trade official said.
Earlier, the United States Trade Representative (USTR) Office sought to include words like "freedom of association of workers, effective recognition of workers' right to engage in collective bargaining, elimination of child labour and elimination of discrimination in respect of employment and occupation" in the Ticfa deal.
The final draft agreement, which the US has agreed upon, as claimed by senior commerce ministry officials, has included words such as "to protect the fundamental labour rights, adherence to ILO (International Labor Organisation) conventions and internationally recognised practices on labour issues".
"We have succeeded in excluding words like "freedom of association of workers, collective bargaining and elimination of discrimination in respect of employment" in the final draft agreement," a high official at the MoC told the FE.
"The US administration has agreed upon the latest restructure of words on labour issues as we also respect and are committed to implementing the labour rights in the country as practised internationally," he added.
Once the Ticfa is signed, a Joint Economic Commission between Bangladesh and the US will be formed to hold bilateral discussion on trade and investment issues, sources said.
Ghulam Hossain said currently no appropriate forum existed between the two countries for discussing bilateral issues resulting in no tangible progress in the long-standing demand of Bangladesh for getting duty-free market access of its products to the US market.
"We will have a target for pursuing our agenda through Ticfa," Ghulam Hossain told the FE.
"Bilateral meetings, be they yearly or biennial, will be held between the two governments under the platform of Ticfa to tap unexplored potential and benefits," he added.
Officials concerned said, the draft Ticfa agreement would be placed to the Ministry of Law for vetting after approval came from the Prime Minister. With the agreement vetted, the Ticfa would then be placed to the cabinet division for approval.
The United States is the single-largest export destination of Bangladesh with an annual export earning of over $6.0 billion or about 40 per cent of Bangladesh's total annual export.