2ND TICFA MEETING IN WASHINGTON TODAY

GSP high on agenda

Bangladesh will highlight issues related to the restoration of GSP (Generalised System of Preferences) and duty-and quota-free access of its products to the US market in the second meeting of Trade and Investment Cooperation Forum Agreement (TICFA) to be held  in Washington today. Dhaka will also raise issues like review of trade and investment inflow from the United States into Bangladesh, opportunities for investment, trans-pacific partnership and its implications and fair pricing, they said sources with the government.
Commerce Secretary Hedayetullah Al Mamun and Assistant US Trade Representative for South Asia Mike Delaney will co-chair the meeting. Meanwhile, the United States has said that the issues related to GSP will be discussed in the TICFA meeting but the matter regarding the restoration of the trade privilege will be addressed only through the process involving Action Plan and Sustainability Compact. “We have made it clear that GSP would be addressed through a process that started in September with the visit of Assistant US Trade Representative (USTR) and will continue to
the Sustainability Compact meeting anticipated for early next year,” David Meale, Deputy Chief of Mission at the US Embassy, told a small group of journalists at the American Centre recently. “We recognize the progress made by Bangladesh. We will be updated on the progress at TICFA. The US wants GSP restored, but we must verify the issues that led to suspension have been fully addressed,” he said. “It is not the US policy to stop Bangladesh from having GSP privileges; GSP eligibility is purely a legal process,” he added. The US diplomat was asked if the GSP, suspended in June, 2013, would be restored after the TICFA meeting. “With regard to the restoration of GSP, there is an ongoing process involving the Action Plan and the Sustainability Compact,” he told another questioner. “TICFA is much bigger than the GSP issue. GSP does matter to us, but it does not apply to a significant amount of about our $6 billion in trade,” he noted.
Meale, who will represent the US Embassy at the meeting, also said, “I beg to disagree that TICFA is meaningless without GSP as more than 99 percent of trade is out of GSP purview.” “TICFA is something more important than GSP. GSP is important. But, GSP does not apply to infrastructure, RMG.  TICFA focuses on other issues like the investment climate. Many American companies are dying to come to Bangladesh and invest. TICFA is a place where all sorts of issues related bilateral economic relations will be discussed,” he said.  
The US official also disagreed with the notion that Bangladesh’s reputation suffered due to the suspension of GSP, rather Industrial accidents like Tazreen Fashion and Rana Plaza were what affected the reputation of Bangladesh’s RMG sector, he said.
Citing the Bangladesh government’s statistics, he said RMG exports to the US increased after the suspension of GSP by 7 percent in the 2013-14 fiscal and 4 percent in 2014-15 FY.
Asked what areas of the US-provided Action Plan the government needs to address for the GSP suspension withdrawal, Meale mentioned failure to inspect some RMG factories, transparency, public database of trade union registration and making them public, and unfair labour practices.
Asked to name the priority areas to be discussed in TICFA meeting, he mentioned GSP, TPP (Trans-Pacific Partnership), US participation in Bangladesh’s energy sector and infrastructure, information technology, general investment, blue economy and Bangladeshi pharmaceuticals’ entry into US market.
Asked if Bangladesh’s RMG would be affected due to the TPP, the US official said, “There is a deep confidence of the international market in Bangladesh’s RMG.  It’s natural to be scared of competition. No one yet knows what’s going on and how it’s going to play out. If Bangladesh wants to maintain competitiveness of its products, high standards must be ensured.” “This year’s TICFA seeks to further bolster trade between the United States and Bangladesh, which exceeds $6 billion annually,” said a media note issued by the US Embassy in Dhaka yesterday.
“TICFA is about expanding the potential of our two countries’ bilateral trade and investment relationship, which includes promising new areas, from pharmaceuticals to increased investment in infrastructure to information technology.”
 “TICFA is about expanding the potential of our two countries’ bilateral trade and investment relationship, which includes promising new areas, from pharmaceuticals to increased investment in infrastructure to information technology,” it said quoting Deputy Chief of Mission Meale. On November 25, 2013, Bangladesh and the United States signed the Trade and Investment Cooperation Forum Agreement (TICFA) to establish an annual forum to identify and address obstacles to increasing bilateral trade and investment.

2ND TICFA MEETING IN WASHINGTON TODAY

GSP high on agenda

Bangladesh will highlight issues related to the restoration of GSP (Generalised System of Preferences) and duty-and quota-free access of its products to the US market in the second meeting of Trade and Investment Cooperation Forum Agreement (TICFA) to be held in Washington today. Dhaka will also raise issues like review of trade and investment inflow from the United States into Bangladesh, opportunities for investment, trans-pacific partnership and its implications and fair pricing, they said sources with the government. Commerce Secretary Hedayetullah Al Mamun and Assistant US Trade Representative for South Asia Mike Delaney will co-chair the meeting. Meanwhile, the United States has said that the issues related to GSP will be discussed in the TICFA meeting but the matter regarding the restoration of the trade privilege will be addressed only through the process involving Action Plan and Sustainability Compact. We have made it clear that GSP would be addressed through a process that started in September with the visit of Assistant US Trade Representative (USTR) and will continue to the Sustainability Compact meeting anticipated for early next year, David Meale, Deputy Chief of Mission at the US Embassy, told a small group of journalists at the American Centre recently. We recognize the progress made by Bangladesh. We will be updated on the progress at TICFA. The US wants GSP restored, but we must verify the issues that led to suspension have been fully addressed, he said. It is not the US policy to stop Bangladesh from having GSP privileges; GSP eligibility is purely a legal process, he added. The US diplomat was asked if the GSP, suspended in June, 2013, would be restored after the TICFA meeting. With regard to the restoration of GSP, there is an ongoing process involving the Action Plan and the Sustainability Compact, he told another questioner. TICFA is much bigger than the GSP issue. GSP does matter to us, but it does not apply to a significant amount of about our $6 billion in trade, he noted. Meale, who will represent the US Embassy at the meeting, also said, I beg to disagree that TICFA is meaningless without GSP as more than 99 percent of trade is out of GSP purview. TICFA is something more important than GSP. GSP is important. But, GSP does not apply to infrastructure, RMG. TICFA focuses on other issues like the investment climate. Many American companies are dying to come to Bangladesh and invest. TICFA is a place where all sorts of issues related bilateral economic relations will be discussed, he said. The US official also disagreed with the notion that Bangladeshs reputation suffered due to the suspension of GSP, rather Industrial accidents like Tazreen Fashion and Rana Plaza were what affected the reputation of Bangladeshs RMG sector, he said. Citing the Bangladesh governments statistics, he said RMG exports to the US increased after the suspension of GSP by 7 percent in the 2013-14 fiscal and 4 percent in 2014-15 FY. Asked what areas of the US-provided Action Plan the government needs to address for the GSP suspension withdrawal, Meale mentioned failure to inspect some RMG factories, transparency, public database of trade union registration and making them public, and unfair labour practices. Asked to name the priority areas to be discussed in TICFA meeting, he mentioned GSP, TPP (Trans-Pacific Partnership), US participation in Bangladeshs energy sector and infrastructure, information technology, general investment, blue economy and Bangladeshi pharmaceuticals entry into US market. Asked if Bangladeshs RMG would be affected due to the TPP, the US official said, There is a deep confidence of the international market in Bangladeshs RMG. Its natural to be scared of competition. No one yet knows whats going on and how its going to play out. If Bangladesh wants to maintain competitiveness of its products, high standards must be ensured. This years TICFA seeks to further bolster trade between the United States and Bangladesh, which exceeds $6 billion annually, said a media note issued by the US Embassy in Dhaka yesterday. TICFA is about expanding the potential of our two countries bilateral trade and investment relationship, which includes promising new areas, from pharmaceuticals to increased investment in infrastructure to information technology. TICFA is about expanding the potential of our two countries bilateral trade and investment relationship, which includes promising new areas, from pharmaceuticals to increased investment in infrastructure to information technology, it said quoting Deputy Chief of Mission Meale. On November 25, 2013, Bangladesh and the United States signed the Trade and Investment Cooperation Forum Agreement (TICFA) to establish an annual forum to identify and address obstacles to increasing bilateral trade and investment.