Our engagement will grow over the board
Image: Collected
The US is optimistic about deepening ties with Bangladesh as the country's exports to American markets have taken care of a robust growth while investors want to widen their footprint in the South Asian nation, US Ambassador Earl R Miller said.
"The bilateral relationship between Bangladesh and the US is beyond organization relations due to the country's geopolitical location," he said during an interview with The Daily Star recently.
He said Bangladesh's exports would continue steadily to grow to the US markets regardless of the transition of the federal government due to Washington sees the united states among the major trading partners.
"The changeover in power in the US won't affect bilateral trade and investment. I believe our engagement will grow over the board," Miller said.
The US is the major export destination of Bangladesh, with the world's biggest economy importing more than $6 billion worth of goods each year. Of the things, more than 90 per cent are apparel items.
The shipment to the American industry is a little less this year because of the fallouts of the coronavirus pandemic.
Miller was sworn in as the US ambassador to Bangladesh found in November 2018. He offered as his country's envoy to the Republic of Botswana from 2014 to 2018.
During the interview, he shared the most recent position of the US market segments and the generalised program of preferences (GSP), US investors' benefit in Bangladesh, the growing student enrollment in American universities, Bangladesh's economic growth and private sector development.
"The relationship between your several countries is strengthening because of the interest in what's happening in the country," he said.
The economic growth that's happening in the country, US investors should visit here to see by themselves, he said.
In September, several American investors kept a gathering on investment in Bangladesh with local investors and Salman F Rahman, primary minister's adviser on personal industry and investment.
Some issues on expense and strengthening of bilateral trade and relations were discussed, the envoy said. Because the meeting, some US companies have been contacting the embassy for expenditure.
US companies just like Chevron have already been expanding on Bangladesh. At Chevron, 90 % of staff are Bangladeshis.
Similarly, US company Coca-Cola includes a intend to invest $200 million in Bangladesh over another five years, and Oracle opened its office in Dhaka in March.
"A lot more US companies are coming to invest in agro-processing, details and communications technology, strength and vitality, LNG and even in dredging of rivers," Miller said.
The diplomat said Bangladesh includes a young entrepreneurial workforce, the economy keeps growing, and there is a potential consumer base of 170 million people.
The companies that are already in Bangladesh are enthusiastic about expansion.
The American Chamber of Commerce in Bangladesh (AmCham) is active. "We've regular calls for possible expense from US investors."
The growing interest of the US is also noticed in the enrollment of Bangladeshi students at American universities, he said.
Bangladesh has improved three notches to 17th this season from 20th last year in mailing students to the US. "It really is amazing," he said.
He praised the garment sector as much local factories could actually personal protective products (PPE) in that short time and sent to retailers in the US.
The envoy also touched upon the business enterprise and investment climate in Bangladesh for foreign investors.
"When US companies turn to invest, they are hungry to invest in a country that operates transparently, upholds the guideline of regulation and protects intellectual property rights (IPR)."
Any weakened problem, corruption and poor human being rights conditions are hazards for businesses and deter investment, prompting companies to glance elsewhere, he said.
Level-playing field is vital for a foreign enterprise, and it encourages them to get here, Miller said.
"Bangladesh should improve its ranking in the Simple CONDUCTING BUSINESS Index of the Community Bank to attract extra foreign investment," he said.
Bangladesh ranked 168th out of 190 countries found in the latest edition of the index, up from 176th this past year, the biggest climb recently.
Relating to the reinstatement of the GSP, the ambassador explained the US Congress models the preferential trade privilege eligibility.
"Bangladesh will not meet the criteria now," he explained, adding that the standards apply to IPR and internationally recognised labour rights.
The US government suspended the GSP status for Bangladesh in June 2013 following the Rana Plaza building collapse in April in the same year, citing poor labour rights and workplace safety.
Prior to the suspension of the GSP, Bangladesh used to export goods like dry fish, ceramics and tobacco items well worth $24 million a month under the scheme.
Bangladesh offers taken some measures to regain the GSP, but nonetheless, some personnel face challenges to join found in unions and the unions, the envoy said.
"Even now, there is some kind of unfair labour practices."
The US and Bangladesh met many times to discuss the progress on labour rights, and American trade authorities will be ready to provide guidance on the GSP criteria. "We will continue steadily to do consequently," the envoy said.
He praised Bangladesh's steps towards protecting the labour rights and amendment to the labour laws. However, US laws prohibits GSP to most textile and leather things worldwide.
Bangladesh is an extremely important partner under the US's Free and Open up Indo-Pacific approach, which aims to facilitate the guideline of legislation and peace and develop infrastructure found in Asia and the Pacific, the envoy said.
He said Bangladesh can be an active player in this place and the country needs to play an important role found in international and regional.
Bangladesh may also be greatly benefited from the Indo-Pacific Strategy while the US government has a system to invest billions of US dollars in infrastructure advancement under the initiative.
"The Indo-Pacific Strategy isn't a counter to the Belt and Highway Initiative of China. We can work together. The way we do that is multifaceted," Miller said.
Regarding the opportunity of a duty lowering on the export of Bangladeshi things to the US, the ambassador said the duty is usually reduced beneath the regional agreements like the African Growth and Option Action and the Caribbean Basin Initiative.
Because the duty on exports of goods from Bangladesh to the US is calculated on the most-favoured-nation category, the structure of duty is higher for Bangladesh compared to other countries.
Bangladeshi exports, specifically the garment items, deal with 15.62 per cent duty on shipment to the US. On the other hand, the shipment from the countries like China and Vietnam is normally charged way lower.
For instance, apparel items from China, the most significant garment dealer to the world, deal with about 3 % duty in the US market.
The ambassador praised the growth of start-ups in Bangladesh. Over the last few years, Bangladesh has got a whole lot of young and talented start-ups in a variety of sectors.
The US embassy has programmes to nurture start-ups.
Source: https://www.thedailystar.net
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