Build stronger trade ties

US Ambassador Marcia Bernicat yesterday urged the business communities in Bangladesh and the US to make efforts to boost bilateral economic relations.

Companies in the US and their local partners are investing in Bangladesh, bringing great technology, and selling valuable goods and services, she said.

"While this is a good news story, and one which I am so very pleased to tell both here and throughout the US, we can't rest on our laurels. There is much room for improvement and we have the power to strengthen US-Bangladesh economic relations."

"Doing so will likely consist of many small actions taken over and over again, which lead to profound change," she said.

Bernicat spoke at the monthly luncheon meeting of American Chamber of Commerce in Bangladesh (AmCham) at Sonargaon Hotel in Dhaka.

Two-way trade between Bangladesh and the US hovers around $6 billion a year, with the balance tilting in favour of Dhaka.

Bangladesh exports products worth $5 billion to the US, primarily garments, and imports products worth $1 billion.

"Can we increase this number? You know we can and we must. I am turning to you, business leaders and others, to help make this a reality," said Bernicat, presenting her keynote on strengthening US-Bangladesh bilateral economic relations.

Bilateral trade creates a significant number of jobs, particularly in the readymade garments sector, she said. "Many of these jobs are for women and create opportunities for economic empowerment. This is reflected in social development indicators where Bangladesh is often scoring better than its neighbours."

"We need to spread the word that Bangladesh is a vibrant economic partner, a partner which is improving workers' rights and creating safe working environments. But spreading the word is not enough; you have to constantly push the envelope forward so that Bangladesh is synonymous with the best work practices and the safest factories."

"We need to spread the word that Bangladesh is a partner with skilled manufacturing capabilities that is interested in further developing its technical base."

Bangladesh is home to a tremendous consumer market with increasing purchasing power and an advantageous demographic mix, Bernicat said.

"It is a country where businesses can succeed. Trust me -- the US private sector is listening, and I believe we will see interest continue to grow."

"While in Bangladesh, I have also seen the strong interest here in building commercial ties with the US."

The ambassador also said the two countries have much to gain from increased trade and investment across a wide range of sectors.

With over two decades of robust growth, Bangladesh is on the cusp of becoming an important regional hub and consumer market, she said.

The US also aims to help the country further develop economically and strengthen bilateral relations, including commercial ties.

"Bangladesh is of strategic interest to the US. We see this country not only in terms of our bilateral ties but also as a partner in addressing issues outside of our two countries."

She also referred to the innovations taking place in Bangladesh, the giant strides in building export capacity, the remarkable progress in lifting people out of poverty, and the essential role Bangladesh will play in boosting regional inter-connectivity in the 21st century.

The ambassador said clear pathways to dispute resolution, making bureaucratic interaction more user-friendly and political stability are essential to boosting the appeal of Bangladesh's commercial environment.

"Boosting the climate for business is a challenge for all countries, including the US. It is essential to increasing trade and growth."

Bangladesh has a strong economic growth rate and will soon begin enjoying a demographic dividend that will combine a young population with increased purchasing power, she said.

Policy and business circles are now turning to the question of necessary infrastructure and capital investments to ensure that Bangladesh's productivity rises to build upon what it has achieved, she added.

"I assure you that the US stands with you in making this happen."

In response to a query on capacity building of institutions, the diplomat said she is a huge fan of promoting transparency and good governance because everything becomes easier when "you have institutions that you trust and you can build upon."

"Rule of law is one of the key elements that businesses and investors look for anywhere in the world. The stronger the institutions, the more favourable the investment environment will be."

AmCham President Aftab Ul Islam said Bangladesh needs to provide an enabling environment to attract more investment from the US.