Washington has clarified that Dhaka might get duty-free and quota-free access for the US market under the World Trade Organisation (WTO) framework, but not bilaterally.
“The duty-free and quota-free discussions have been in the context of WTO; more specifically they are in the context of Doha Round [the latest round of trade negotiations among the WTO membership] and the commitment on DFQF [duty-free and quota-free] was made as part of the Doha Round and as a part of the overall package. Doha Round is yet to be completed. It [DFQF] is tied to the Doha Round,” said Assistant US Trade Representative for South and Central Asia Michael Delaney, in reply to a question at a joint press conference with Bangladeshi Commerce Secretary Mahbub Ahmed.
They were speaking after the first Trade and Investment Cooperation Forum Agreement (Ticfa) meeting held at a city hotel yesterday.
The US has provided duty-free and quota free access to some least developed countries (LDCs) in Sub-Saharan and Caribbean countries, but the benefit has never been provided to Bangladesh.
In the meeting, Bangladesh reminded the US delegation that Washington had a responsibility to help the LDCs become developing countries.
Dhaka pays around 16% duty on an average for its exportable items to the US market.
“Bangladesh deserves duty-free quota-free access [to the US market] as it is a least developed country,” the commerce secretary said.
Mahbub added that after they had referred to the DFQF facility provided to some LDCs, the US delegation said those LDCs were vulnerable countries.
“We told them that Bangladesh is also a climate vulnerable country and they should consider that,” Mahbub said.
“We also told them that for our growth, we need industrialisation and export market, where we can sell our manufactured products,” he added.
The meeting reviewed bilateral relationship and GSP Action Plan, market access for goods and service, US investment in Bangladesh, transfer of technology, Bali Package and Istanbul Plan of Action.
The secretary also said the US side spoke on some specific issues including tariffs of fire, electrical and structural safety equipment; public tender specification; double fumigation (cotton); diabetic drugs; currency issue; delayed payment; intellectual property rights; and regional economic development.
Delaney said he was extremely grateful by the government decision to reduce tariff on fire and safety equipment.
“It enables me to go to United States and tell my government that the Bangladesh government is really facilitating improvement in these factories, they are taking these very seriously and doing everything they can to address the fire and safety issues,” he said.
However, a trade specialist had earlier told the Dhaka Tribune that Washington demanded a reduction of the duty on fire and safety equipment, as it wanted to export the products to Bangladesh market.
About the GSP issue, Delaney said there was more work to be done in the implementation of labour law reform, safety and inspection. “These are the things that have been launched but they are very much work in progress and they are not completed,” he said.
Washington suspended GSP facility for Bangladesh in June last year blaming poor working conditions in the country.
When asked about the comment of Finance Minister AMA Muhith that Bangladesh-US political relationship was not comfortable, Delaney said: “I did note the finance minister’s remark, I read them in the local media and I have seen the record. I would leave it to the finance minister to explain.”
However, speaking after yesterday’s Ticfa meeting, US Ambasador Dan Mozena said Bangladesh-US relationship was never stronger, deeper and broader than now.
“I would offer the development of the last two weeks. We had last week, security dialogue, and just concluded the very first meeting of Ticfa. I could not be more pleased with this meeting today,” he said.
About the high duty paid by Bangladesh compared to other countries including China, Delaney said the claim was not correct. Bangladesh and China enjoy most favoured nation status in the US and both of them pay same tariff rate for their exportable items, he said.
