An early approval of the Trade and Investment Forum Agreement (TICFA) may have helped Bangladesh avert an unfavourable situation with regard to continuation of GSP facilities for Bangladeshi products in the USA, observed government officials. Bangladesh had been seized of the matter for about 11 years, unable to decide on the steps to be taken. Finally on Monday, the Cabinet approved the draft of TICFA, paving the way for the signing of the agreement.
The officials are of the view that had there been a TICFA between Bangladesh and the USA, Dhaka could have avoided the hearing of the United States Trade Representative (USTR) regarding the GSP. They argue that all trade-related issues could be discussed in the forum that would have been established under TICFA.
“Although there is no direct link between TICFA and the GSP, we could have used the agreement to avoid the USTR hearing on the GSP,” said a senior official while talking to The Independent. He added: “At this point, I don’t think the TICFA approval will have any impact on the GSP decision.”
Another official said: “Look at Sri Lanka. They get away with serious matters with the help of an agreement like TICFA. It should have been signed long ago.”
Lamenting the delay in signing the agreement, the officials said that the draft approved by the Cabinet on Monday was prepared on February 27, 2012 and there had been no change in the draft since then. Asked about the reasons behind the delay, they said that a section of the government might not have been interested in TICFA and the Prime Minister had not been adequately briefed about the agreement.
“Look at the agreement. It appears to be an innocent one. The USA has this agreement with so many countries,” an official said.
The officials, however, expressed satisfaction at the approval of the agreement. About the signing of the agreement, they would not provide a specific date. After receiving the decision of the Cabinet, the Foreign Ministry will communicate with the US authorities for the signing of the agreement at a mutually convenient time.
The Bangladesh Ambassador to Washington, Akramul Qader, said the signing of TICFA will encourage US investors to invest in Bangladesh.
“Existence of such an agreement will provide the US investors confidence and a sense of security. They will know that there is a platform to resolve any trade and investment-related problems between the two countries,” he told The Independent from Washington.
Asked how Washington was viewing the Cabinet decision, the Ambassador said: “It’s a very good development. They are certainly happy.” Asked if the development regarding TICFA would impact the GSP decision, he said: “I cannot say that. Though there is no direct relationship between the two, the TICFA approval is a good thing.”
On whether an early decision on TICFA could have made things different for Bangladesh regarding the GSP, Qader said: “No comment.”
Is the TICFA approval too little too late? The immediate-past Bangladesh Ambassador to the USA said: “I will not put it that way. I will say it is not sufficient to reduce the gap that has been created between the two countries.” Asked if it would have any positive impact on the GSP decision, he said: “I doubt it.”
-With The Independent input
