Ease trade rules to attract more US investment
Bangladesh needs to reform its trade regulations for ease of doing business to attract more US investment, outgoing US ambassador Marcia Bernicat said yesterday.
“American businessmen and women have a lot of different choices. You want to bring them here. Once they get here they would be impressed, but once they are here the ease of doing business is the way to get them to stay here,” she said.
“Bangladesh's ease of doing business is way too low. There is good money to be made here, there are a lot of great partners but 42 steps to open a business,” said Bernicat.
Addressing a farewell luncheon meeting of the American Chamber of Commerce in Bangladesh (AmCham) at The Westin Dhaka, she said reforms were needed to encourage businesses to flock here.
It is easy to do good business here and Bangladesh needs to do a better job at selling its story, she said, adding that Bangladesh is different now from what its story was in 1971. Bangladesh is not devastated by storms now.
“Too few people know about your consistent 6 percent or more growth rate over the years and vibrant sectors…Who has to tell the story? The government has to tell it, the industries have to sell it and the civil society has to sell it,” she said.
Regarding the safety progress in the garment sector, Bernicat said, “I would say the progress that has been made is enormous. But the safety has to be a part of the culture so that people know about it all the time. The Remediation Coordination Cell needs to be strengthened further to make it ready for operation.”
The ambassador—who completed a three-year tenure here—also said the US was by far the biggest investor for Bangladesh.
The US is also Bangladesh's single largest export destination. In 2017, the bilateral trade between Bangladesh and the US stood at over $7 billion. US exports to Bangladesh grew 61 percent last year.
Clearly, the US firms are strongly interested to invest in this promising market, she said.
Bangladesh offered one of the world's fastest growing economies, sustained impressive economic performance over the decades and the opportunity to enhance infrastructures and the burgeoning middle class, all key elements, said Bernicat.
She said both countries did a number of regional trade activities together and have highlighted the growing opportunities available for South Asia to trade with itself.
A lot more will be done under an Indo Pacific strategy, as US Foreign Secretary Michael R Pompeo stated recently. “Good part of the strategy is about keeping markets open, keeping sea lines open, keeping opportunities available for countries to attract investment to grow their business sectors. In Indo Pacific strategy, Bangladesh is considered as one of the strongest partners in South Asia,” she said.
“It is my expectation that Bangladesh will continue to grow. The next level of Trade and Investment Cooperation Forum Agreement (TICFA) talks will be held between September 13 and 14 in Washington where the bilateral trade issues would be discussed widely by both partners.”
Bernicat suggested strong corporate value that not only involves good products and a good price that was reliable but also improving the environmental value with corporate social responsibility and conducting business in a fair and transparent manner. Those practices and values about doing business are the right ways, she added.
