UK seeks level-playing field for investment

A level-playing field needs to be maintained for foreign companies interested in investing and operating in Bangladesh, emphasised the United Kingdom (UK) in a statement after a dialogue yesterday.

The UK also invited Bangladesh to engage with its private sector to pursue a commercial dispute resolution system to unlock the full potentials of foreign direct investment (FDI) in the south Asian country.

The second Bangladesh-UK Trade and Investment Dialogue was held in Dhaka with Tapan Kanti Ghosh, senior secretary to the commerce ministry, representing the Bangladesh side.

British High Commissioner to Bangladesh Robert Chatterton Dickson and Trade Commissioner for South Asia Alan Gemmell led the UK delegation.

Though FDI is increasing in Bangladesh, it is still not at the rate expected. Bangladesh's net FDI inflow rose 47 per cent year-on-year to $2.6 billion during the January-September period of 2022, according to Bangladesh Bank data.

In 2021, Bangladesh received $2.89 billion in FDI while Vietnam $19.74 billion.

The government had targeted to attract $32 billion in FDI during the Seventh Five-Year Plan period stretching from fiscal year 2015-16 to 2019-20.

But the country managed to bring in less than $10 billion.

The UK is the second biggest country after the US in terms of sources of gross FDI flowing into Bangladesh. Gross foreign investment from the UK stood at $2.5 billion at the end of September 2022, according to Bangladesh Bank data.

The UK is also Bangladesh's third largest export market after the US and Germany. Bangladesh shipped goods worth $3.5 billion to the country in fiscal 2021-22, up from $2.8 billion a year ago.

"Foreign direct investment builds the foundation to provide jobs, transfer skills, generate revenue, create competition and drive standards higher," said Gemmell.

A conducive business climate and removal of market access barriers will benefit both countries and underline the great opportunities for UK businesses, he said.

The relationship between the UK and Bangladesh is underpinned by the potential of trade and investment that will help both economies grow, he added.

Bangladesh is very keen to take this relationship to a new height through enhanced trade and economic cooperation, said Ghosh.

Continuation of the dialogue will contribute to increasing trade and investment in both countries, he added.

Both countries agreed to arrange the dialogue annually and a Joint Working Group (JWG) regularly.

The JWG would cover a broad range of trade and investment issues, including mutual barriers to market access and trade, with an agenda agreed between the UK and Bangladesh in advance.

Both the countries agreed to enhance the bilateral trading partnership to increase mutual prosperity ahead of and after Bangladesh's graduation from least developed country (LDC) status.

The UK recognised Bangladesh's economic growth and resilience, despite the widespread impact of the global pandemic and ongoing global economic crisis.

Bangladesh welcomed the UK's generous Developing Countries Trading Scheme (DCTS) and acknowledged its role in integrating Bangladesh into the global economy, creating stronger trade and investment opportunities.

The DCTS provides duty-free, quota-free trade to LDCs on everything but arms.

The UK reflected commitments under the DCTS to international conventions on labour standards and human rights, anti-corruption, climate change and the environment.

The UK and Bangladesh discussed cooperation in areas such as LDC graduation, investment cooperation, pharmaceuticals, ease of doing business, financial sector development, higher education provision, taxation issues and intellectual property protection.

The UK encouraged Bangladesh to explore investment opportunities for the UK services sector, including financial and professional services.

Bangladesh reiterated the importance of the garments sector. Both countries recognised the importance of high-quality education and agreed to further deepen and widen the scope of collaboration in the area of higher education for mutual benefit.

The UK stressed the importance of Bangladesh putting in place economic policies and systems to achieve its ambition of rapid, sustainable and green economic development; and pledged its ongoing cooperation.