Kazi Zahidul Hasan :
The Ministry of Commerce has asked the Tariff Commission to prepare a detail strategy to pursue preliminary discussion on a potential bilateral free-trade agreement (FTA) with the United States, the single largest export destination for Bangladeshi merchandises.
The FTA cell of the ministry in a letter on March 18 asked the Commission to prepare the strategy along with a complete report in this regard.
Officials said the ministry came up with the move following the Trump administration’s continuous denial to reinstate Bangladesh’s GSP facility, which the US suspended on 27 June in 2013, citing poor working condition in the local ready-made garment (RMG) industries.
The Bangladesh Ambassador in Washington, Mohammad Ziauddin, in a recent letter to the Ministry made the US government’s mindset on the GSP issue clear, suggesting it to initiate a Dhaka-Washington bilateral FTA to promote Bangladesh’s export to the US market.
“There is a little possibility to get back the US’s GSP facility. So, Bangladesh should prepare for a FTA negotiation in a move to expand its export market to the country,” said the envoy.
He also suggested for a detailed research on the issue prior to start the FTA negotiation.
“The US mindset on GSP issue has prompted us to lay the groundwork for a future Bangladesh-USA free-trade agreement. So, we have asked the Tariff Commission to prepare for a comprehensive strategy and report prior to launching the FTA negotiation,” a senior Commerce Ministry official told The New Nation yesterday, asking not to be named.
He said the ministry also asked the Commission to assess the possible adverse and favourable impact on local export industries if Dhaka and Washington sign the FTA.
“We have decided to switch over from GSP to FTA
considering interest of the local export industries as well as boosting Bangladesh’s export to the US market. It could also help expand bilateral trade between the two countries,” he added.
The trade official said the US remains the largest trade and investment partner for Bangladesh and the bilateral trade between the countries is growing over the years.
“But Bangladesh’s export to US market suffers setback due to high tariff imposed by the US government. The US customs is charging an average tariff of 15.8 per cent on goods imported from Bangladesh. Such a high duty on Bangladeshi products is affecting a smooth trade and economic cooperation between the two countries,” he said.
So, the issue of duty-free market access or FTA is crucial to garner from the bilateral trade, the official said.
The bilateral trade between Dhaka and Washington stood about US$7.0 billion last year heavily tilting on Bangladesh side.
Bangladesh’s export to the USA totaled $5.84 billion in the fiscal 2016-17 with more than 90 per cent being the garment items.
Commerce Minister Tofael Ahmed has recently said that Bangladesh is likely to sign FTA with the USA to boost exports its largest market, as the country does not enjoy the GSP facility.
“As Bangladesh is graduating from the LDCs status, we won’t get duty-free and quota-free access anymore. So, the country could increase its trade facilities through signing the FTA with the USA,” he said while addressing the opening ceremony of 25th US Trade Show in the city.
The Ministry of Commerce has asked the Tariff Commission to prepare a detail strategy to pursue preliminary discussion on a potential bilateral free-trade agreement (FTA) with the United States, the single largest export destination for Bangladeshi merchandises.
The FTA cell of the ministry in a letter on March 18 asked the Commission to prepare the strategy along with a complete report in this regard.
Officials said the ministry came up with the move following the Trump administration’s continuous denial to reinstate Bangladesh’s GSP facility, which the US suspended on 27 June in 2013, citing poor working condition in the local ready-made garment (RMG) industries.
The Bangladesh Ambassador in Washington, Mohammad Ziauddin, in a recent letter to the Ministry made the US government’s mindset on the GSP issue clear, suggesting it to initiate a Dhaka-Washington bilateral FTA to promote Bangladesh’s export to the US market.
“There is a little possibility to get back the US’s GSP facility. So, Bangladesh should prepare for a FTA negotiation in a move to expand its export market to the country,” said the envoy.
He also suggested for a detailed research on the issue prior to start the FTA negotiation.
“The US mindset on GSP issue has prompted us to lay the groundwork for a future Bangladesh-USA free-trade agreement. So, we have asked the Tariff Commission to prepare for a comprehensive strategy and report prior to launching the FTA negotiation,” a senior Commerce Ministry official told The New Nation yesterday, asking not to be named.
He said the ministry also asked the Commission to assess the possible adverse and favourable impact on local export industries if Dhaka and Washington sign the FTA.
“We have decided to switch over from GSP to FTA
considering interest of the local export industries as well as boosting Bangladesh’s export to the US market. It could also help expand bilateral trade between the two countries,” he added.
The trade official said the US remains the largest trade and investment partner for Bangladesh and the bilateral trade between the countries is growing over the years.
“But Bangladesh’s export to US market suffers setback due to high tariff imposed by the US government. The US customs is charging an average tariff of 15.8 per cent on goods imported from Bangladesh. Such a high duty on Bangladeshi products is affecting a smooth trade and economic cooperation between the two countries,” he said.
So, the issue of duty-free market access or FTA is crucial to garner from the bilateral trade, the official said.
The bilateral trade between Dhaka and Washington stood about US$7.0 billion last year heavily tilting on Bangladesh side.
Bangladesh’s export to the USA totaled $5.84 billion in the fiscal 2016-17 with more than 90 per cent being the garment items.
Commerce Minister Tofael Ahmed has recently said that Bangladesh is likely to sign FTA with the USA to boost exports its largest market, as the country does not enjoy the GSP facility.
“As Bangladesh is graduating from the LDCs status, we won’t get duty-free and quota-free access anymore. So, the country could increase its trade facilities through signing the FTA with the USA,” he said while addressing the opening ceremony of 25th US Trade Show in the city.
