Bangladesh and US sign trade cooperation forum agreement

Trade & Policy

Bangladesh and US sign trade cooperation forum agreement

Bangladesh has signed a deal with the US to boost trade ties after decade-long talks as the world's second largest garment exporter sought restoration of a scrapped privilege in the huge American market. The US is the biggest destination for Bangladeshi apparel with two-way goods trade totaling USD 5.4 billion in 2012, according to the Office of the United States Trade Representative (USTR) website.

The US, in June this year, suspended Bangladesh's Generalised System of Preferences (GSP) status which provided duty-free access to 97 per cent of the country's export items, citing poor safety standards in factories 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.

"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. The two countries signed the Trade and Investment Cooperation Forum Agreement (TICFA) in Washington.

The treaty is also aimed at removing impediments in the trade and investment sectors and fostering bilateral trade and investment for creating jobs, improving technology and enhancing development, the statement said.