‘Our engagement will grow over the board’
The US is optimistic about deepening ties with Bangladesh as the country's exports to American marketplaces have preserved a robust growth while investors want to widen their footprint in the South Asian nation, US Ambassador Earl R Miller said.
"The bilateral romantic 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 as Washington views the country among the major trading partners.
"The changeover in power in the US won't affect bilateral trade and expenditure. I believe our engagement will grow across the board," Miller said.
The US may be the largest export vacation spot of Bangladesh, with the world's biggest economy importing a lot 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 just a little less this year because of the fallouts of the coronavirus pandemic.
Miller was sworn found in as the US ambassador to Bangladesh found in November 2018. He dished up as his country's envoy to the Republic of Botswana from 2014 to 2018.
During the interview, this individual shared the latest position of the US market segments and the generalised system of preferences (GSP), US investors' interest in Bangladesh, the developing scholar enrollment in American universities, Bangladesh's economic growth and non-public sector development.
"The relationship between the several countries is strengthening because of the interest in what's happening in the country," he said.
The economic growth that is happening in the united states, US investors should click here to see independently, he said.
In September, a group of American investors kept a gathering on investment in Bangladesh with native investors and Salman F Rahman, primary minister's adviser on individual industry and investment.
Some issues on purchase and strengthening of bilateral trade and relations were discussed, the envoy said. Because the meeting, some US companies have been contacting the embassy for investment.
US companies just like Chevron have already been expanding in Bangladesh. At Chevron, 90 per cent of staff members are Bangladeshis.
Similarly, US company Coca-Cola includes a intend to invest $200 million in Bangladesh over the next five years, and Oracle opened its own office in Dhaka in March.
"A lot more US companies are arriving at invest in agro-processing, facts and communications technology, strength and electric power, LNG and even found in dredging of rivers," Miller said.
The diplomat said Bangladesh has a young entrepreneurial workforce, the economy is growing, and there's a potential consumer base of 170 million people.
The companies that already are in Bangladesh are thinking about expansion.
The American Chamber of Commerce in Bangladesh (AmCham) is active. "We've regular calls for possible expenditure from US investors."
The growing interest of the US can be noticed in the enrollment of Bangladeshi students at American universities, he said.
Bangladesh has improved 3 notches to 17th this year from 20th this past year in sending college students to the US. "It really is amazing," he said.
He praised the garment sector as much local factories were able to personal protective devices (PPE) in that short time and sent to retailers in the US.
The envoy also touched after the business and investment climate in Bangladesh for foreign investors.
"When US companies turn to invest, they will be hungry to purchase a region that operates transparently, upholds the guideline of regulation and protects intellectual real estate rights (IPR)."
Any weakened problem, corruption and poor individual rights conditions are hazards for businesses and deter expense, prompting companies to look elsewhere, he said.
Level-playing field is essential for a foreign enterprise, and it encourages them to get here, Miller said.
"Bangladesh should improve its position in the Simple CONDUCTING BUSINESS Index of the Environment Bank to attract additional foreign expenditure," he said.
Bangladesh ranked 168th out of 190 countries found in the most recent edition of the index, up from 176th this past year, the biggest climb recently.
Concerning the reinstatement of the GSP, the ambassador stated the US Congress pieces the preferential trade privilege eligibility.
"Bangladesh will not meet the criteria now," he stated, adding that the requirements connect with IPR and internationally recognised labour rights.
The US government suspended the GSP status for Bangladesh in June 2013 after 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 worth $24 million per month under the scheme.
Bangladesh features taken some guidelines to regain the GSP, but nonetheless, some staff face challenges to become listed on found in unions and the unions, the envoy said.
"Nonetheless, there is some kind of unfair labour practices."
The US and Bangladesh met several times to go over the progress on labour rights, and American trade professionals will be ready to provide help with the GSP criteria. "We will continue steadily to do so," the envoy said.
He praised Bangladesh's techniques towards protecting the labour rights and amendment to the labour legislation. However, US law prohibits GSP to most textile and leather merchandise worldwide.
Bangladesh is an extremely important partner beneath the US's Free and Open up Indo-Pacific strategy, which aims to facilitate the rule of rules and peace and develop infrastructure in Asia and the Pacific, the envoy said.
He said Bangladesh can be an active player found in this area 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 as the US government has a plan to invest billions of US dollars in infrastructure production under the initiative.
"The Indo-Pacific Strategy is not a counter to the Belt and Highway Initiative of China. We can work together. Just how we do this is multifaceted," Miller said.
Regarding the opportunity of a duty lowering about the export of Bangladeshi products to the US, the ambassador explained the work is usually reduced beneath the regional agreements like the African Growth and Prospect Work 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 in comparison to other countries.
Bangladeshi exports, especially the garment items, deal with 15.62 % duty on shipment to the US. Alternatively, the shipment from the countries like China and Vietnam is normally charged way lower.
For example, apparel items from China, the most significant garment distributor to the world, deal with about 3 per cent duty in the US market.
The ambassador praised the growth of start-ups in Bangladesh. Over the last few years, Bangladesh has got a lot of little and talented start-ups in a variety of sectors.
The US embassy has programmes to nurture start-ups.
