In a boost to their bilateral ties, Bangladesh and the US have inked a key trade pact that would provide a platform to restore duty benefits for products from the world's second largest garment exporter in the American market and address trade disputes.
The US, which is the biggest destination for Bangladeshi apparel, earlier this year suspended duty benefits from the South Asian nation amid concerns over poor safety standards in factories there.
"The agreement will enable the countries to establish a forum with representatives from both parties to discuss opportunities and interests of bilateral trade and investment," a foreign office statement said.
Both countries signed Trade and Investment Co-operation Forum Agreement (TICFA) in Washington last night.
The US suspended Bangladesh's Generalised System of Preferences (GSP) status, that provided duty-free access to 97 per cent of the country's export items, after the twin industrial disasters of Tazreen fire and Rana Plaza collapse.
While a fire at Tazreen Fashions killed 111 people last November, the Rana Plaza collapse - the country's worst industrial disaster - killed 1,135 people this April.
Commerce Minister G M Quader said: "Our first target is to recover our trade privileges to the US, as TICFA is a platform for resolving trade disputes between us".
He said the issue would be raised in the first meeting of the forum today while in its second meeting within three months here, Bangladesh would seek withdrawal of duties for the remaining 3 per cent of the products, which include readymade garments (RMG).
The two-way goods trade, between Bangladesh and the US, touched USD 5.4 billion in 2012, according to the Office of the United States Trade Representative (USTR) website.
In a separate statement, US Trade Representative Michael Froman said said the agreement would help to track and discuss Bangladeshi efforts to improve worker safety and worker rights.
"This is an important priority for the United States as Bangladesh seeks to prevent more tragedies in its ready-made garment sector," he said.
Despite its bitter dispute with the ruling Awami League over the polls-time government, main opposition Bangladesh Nationalist Party welcomed the deal but left-leaning parties protested the development calling it "anti-Bangladesh".
Reports said Bangladesh was under pressure to sign the agreement.
Bangladesh, however, said there was no such pressure while Quader said TICFA was not a pre-requisite for continued Generalised System of Preferences (GSP) facility or US duty waiver scheme for Bangladeshi products.
Bangladesh has around 5,000 garment factories, employing about 4 million people, mostly women. The country's export-oriented ready-made garment industry is worth USD 19 billion-a-year.
