The history of friendship between Bangladesh and USA has a glorious past and a positive future as well. Following the independence of the country, Bangladesh has always been getting cooperation from the USA in different aspects starting from foreign aid, investment, international business, higher education, infrastructure development, health sector and so on.
Both the countries are working together to curb terrorism around the world. Bangladesh has shown zero tolerance against terrorism in national and global arena. As a development partner, USA was always with us.
U.S. Secretary of State Hillary Rodham Clinton is due here in Bangladesh from May 5 to 6 as a part of her official visit in China and India. This visit will bring forth the opportunity to further strengthen the existing relationship with USA.
Bangladesh has a long trading relationship with USA. Though export has been gradually declining but still has a future in bilateral trade.
A comparative study of export, import and balance of trade position for January and February, 2011 and 2012 and a total trade position for the year 2011 is given below:
Period Export(Million USD) Import(Million USD) Balance of Trade Deficit (Million USD)
January2011----------------------59.3---------------428.7---------------------------(369.4)
January 2012---------------------35.9---------------483.2---------------------------(447.3)
February 2011--------------------80.5---------------391.4---------------------------(310.9)
February 2012--------------------35-----------------441.6---------------------------(406.6)
Total 2011------------------------1145.6------------4876---------------------------(3730.4)
From the aforesaid table it is observed that in relation to January 2011, in January 2012 export to USA from Bangladesh has declined for 39.46% while import has increased for 12.71% and balance of trade deficit between two countries have raised by 21.08%. Similarly in relation to February 2011, in February 2012 export to USA from Bangladesh has declined for 56.52% while import has increased for 12.82% and balance of trade deficit between two countries have raised by 30.78%.
Earlier Trade and investment framework agreement (TIFA) was supposed to be signed between two countries. But it was not happened due to some issues which were not favorable to Bangladesh. Now Bangladesh is considering signing Trade and Investment Cooperation Framework Agreement (TICFA) with the US. Recently foreign minister of Bangladesh commented that TICFA agreement between both the countries will be signed.
Under the umbrella of WTO, Bangladesh is facing problems with regard to trade related aspects of intellectual property rights.
Third generation entrepreneurship is developing here where professionalism would be restored resulting positive impact on international trade and investment for the days to come.
Environmental issues are another concern for Bangladesh where bilateral negotiation can be placed under the scope of international environmental negotiations.
Bangladesh is enjoying GSP (Generalized System of Preferences) facilities up to 31st July, 2013. This helps to access to the USA market for certain products with a low or no duties. Dhaka Chamber of Commerce and Industries on 31st December 2011 informed that 71% of USA GSP facilities were utilized for Bangladesh’s export in 2010, with the GSP covered export valuing about USD 19 million which was less than 1% of Bangladesh’s total export to USA. Moreover, due to ignorance exporters, many products could not enjoy GSP facilities. Export Promotion Bureau, Bangladesh Embassy in USA and non-resident Bangladeshis can help exporters to promote export in USA market.
Moreover, on the basis of the need of USA market, Bangladeshi entrepreneurs can produce the products. Understanding the market in international trade should be the prime focus of an exporting country.
USA firms can invest in Bangladesh in various sectors like transportation, energy and power, health, educational, deep sea port and so on.
USA’s third largest energy company ConocoPhillips wants to operate more blocks in the Bay of Bengal after getting the ruling of International Tribunal for the Law of the Sea. ConocoPhillips can explore more offshore oil and gas exploration. But all those negotiations should be made upholding the interest of the country atop.
Good medical and general educational institutes of USA can explore the cross border educational system in Bangladesh through establishing directly controlled branch of institutions. This will create an immense help for getting world-class higher education which will open the new horizon of knowledge base.
USA companies which are now trying to leave China and set up their plant in different countries; Bangladesh may be one of the alternative for those companies. For this reason govt. may take initiatives to have more infrastructural facilities to attract those international investors.
Grameen Bank is one of the pioneering institutes of microcredit. Dr. Muhammad Yunus contributed the downtrodden rural people especially the women folk for their empowerment. The step down of Dr. Yunus, as it happened, was not appreciating to the US, let alone to the people of Bangladesh. There may have argument on his real contribution, but poor people at least got a better social services otherwise they would have suffered the capital market scam. His step down has put a negative impact on the existing bilateral relations between these countries.
The scope of multilateral trade is wide having new avenues for the development of the country.
Both the countries can work together for protection and promotion of human rights.
USA can contribute for institutional reforms in foreign trade, business, investments, and create a business-friendly environment between these two nations. This can be achieved by strengthening legal, administrative, and regulatory systems and reducing bureaucracy, among others. Investing and improving physical (roads and highways), educational (medical colleges, institutes and universities), and technological infrastructures (telecommunications, broadband, and information technology) will increase the possibility of future trade, investment and development at large.
This is critical in attracting foreign investments. This will encourage the strategic alliances and partnerships with USA.
The way we can utilize our negotiation skills during the visit of Hillary Clinton will have important impact on building a strategic alliance between USA and Bangladesh.
The Write is a Professor and Head, M.H. School of Business and Chairman, Center for breakthrough thinking in Bangladesh.
EAP
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