US praises Dhaka's deals with Delhi

US Ambassador Marcia Bernicat yesterday said the agreements signed by the premiers of Bangladesh and India underscored a positive trajectory for economic development across borders in South Asia through enhanced regional connectivity.

"They have laid the groundwork for cheaper and more reliable energy, better roads and bridges, an increased flow of people and trade, and better use of precious resources," she said at a luncheon meeting with businesses and representatives of foreign companies engaged in business here.

Foreign Investors' Chamber of Commerce and Industry (FICCI) organised the meeting at The Westin Dhaka.

Bernicat also termed the recent visit of Indian Prime Minister Narendra Modi “positive and historic.”

“Our excitement at these prospects is reflected in America's own policies.”

US President Barack Obama has backed a strategy to increase the United States' engagement with Asia and to support efforts to better connect South and Southeast Asia through the Indo-Pacific Economic Corridor (IPEC), she said.

The countries comprising these two regions collectively generate more than $4.3 trillion in annual GDP and have almost 1.9 billion people, she added.

"Our support for IPEC is aimed at boosting energy production, reducing trade barriers, enhancing connectivity, and supporting stronger people-to-people ties."

She said the US is working with host country governments, multilateral institutions, think-tanks, the private sector, and others throughout the region to address ongoing challenges, such as inadequate infrastructure and regulatory barriers.

Bangladesh positions itself well to facilitate economic connectivity between South and Southeast Asia, the US ambassador said.

The US sees strong potential in various areas that include developing a South Asian regional energy market for clean and renewable sources of electricity, such as the enormous hydropower resources available in Nepal and Bhutan, she added.It would also deploy efficiencies such as those promoted by the US Agency for International Development's South Asia Regional Initiative for Energy Integration (SARI) that facilitates transmission interconnections and the regulatory framework to enhance electricity trade and market integration, she said.

In response to a query on whether regional connectivity will increase the risk of terrorism, she said terrorists are already taking advantage of increased transit access.

"Yes, it represents challenges, but this is not by any means a reason to not enhance regional connectivity. I will argue the opposite: the more we as nations work with one another across borders, the more likely we are successful in fighting the terrorists."

The US ambassador also stressed the need to increase the volume of bilateral trade between Bangladesh and the US, which is now at $6.4 billion and tilted towards Bangladesh.

Citing the semi-annual partnership dialogue with the Bangladesh government, she said the discussions focused on boosting economic growth through trade and investment. “The blue economy was one of the new areas we discussed, as was regional trade.”

"Our two countries will continue to develop these themes in our next Trade and Investment Cooperation Framework Agreement (TICFA) discussions, which we expect to hold later this year," Bernicat said.

FICCI President Rupali Chowdhury said restoration of the generalised system of preferences by the US would further increase Bangladesh's exports to the US.

Bangladesh's economy grew well over the last several years and the economy can grow faster if the existing bottlenecks are removed, she said.

Citing a survey by an independent body, she said inadequate infrastructure came as the main bottleneck followed by corruption and inefficient bureaucracy.

She said removal of infrastructure bottlenecks requires a long time. Standard procedures can be developed to reduce bureaucratic bottlenecks and red tapism, Chowdhury said.