Terms of trade

THE US has been trying to conclude a treaty with Bangladesh on economic, political and military interests since 2001. In the past, it failed twice -- once during BNP led regime of 2001-06 and again during the caretaker government (2007-08). On both occasions it failed due to peoples' opposition.
Immediately after assumption of power by the present government the US has started pressuring the government for the agreement. It was recently disclosed by the minister for commerce that conclusion of a treaty is at the penultimate stage. Strangely enough, the people are not aware of the development of such a sensitive issue in a democratic country.
Analysts consider the Trade and Investment Framework Agreement (TIFA) as more than a trade pact. It involves US geo-political strategy. Ever since the Chinese communist revolution, i.e. the decade of the '50s, Bangladesh has been important to the US from the point of view of the US policy of encircling China.
This policy could be pursued till the liberation of Bangladesh through Pakistan-US South East Asia Treaty Organization (Seato). After the liberation of Bangladesh, the US could not continue to pursue the policy due to development of USSR-Bangladesh friendship.
It appears that US has failed to bring the countries with stronger economies under this treaty. These countries are Canada, China, EU and India. Truly speaking, TIFA is for countries that are weak politically, economically and militarily.
Among the countries brought under the treaty are Cambodia, Indonesia, Malaysia, Thailand, Sri Lanka, New Zealand etc. (South East Asia and Pacific area countries), Algeria, Bahrain, Tunisia, United Arab Emirate, Egypt, Georgia, Iraq, Oman, Saudi Arabia etc. (Middle Eastern countries), Uruguay (Latin America), Nigeria, Ghana, South Africa, etc. (Africa). If closely examined, it will be clear as to why US is so interested in bilateral treaties like TIFA. This treaty is directly linked to US geo-political and foreign policy.
As per WTO, Bangladesh, an LDC, will continue to remain outside the Trademark, Copyright, Patent and Intellectual Property rights till 2013. With regard to the pharmaceutical sector, Bangladesh will enjoy this privilege up to 2016. If TIFA is concluded, Bangladesh will be compelled to pay the mother companies.
In the IT sector alone, Bangladesh will have to pay around $500 million under the Intellectual Property Rights. Furthermore, Bangladesh is occupying the top position among the Asian countries in indulging in software piracy. If TIFA is concluded, the local price of computers may rise substantially.
Through this treaty, US may gain absolute control over our oil and gas. With the opening of service and trade sectors to foreign investment local investors will face unequal competition from foreigners in critical sectors like fuel, telecommunication, education and health. It may be stated in this regard that about 21.4% of the labour force is engaged in these sectors, and they contribute to the extent of about 41.37% to the local production.
Bangladesh has nothing to gain from TIFA but she may lose substantially. RMG exporters to US are paying 4% more than others to enter the US market. Though there is mention of duty-free entry in the TIFA draft we are not sure about any gain for Bangladesh.
The European Union recently withdrew restrictions on the sale of genetically modified organisms. This means flooding of the market with junk food. In Europe, the population is much smaller than it is in the third world. Bangladeshis, being poor, will rush for cheaper junk food, resulting in crippling of the poor.
In Bangladesh, multinational companies have destroyed thousands of local varieties of paddy seeds. TIFA will increase the danger. We apprehend gradual destruction of our local industries.
On TIFA, both AL and BNP hold the same view. We hope that they will not compromise with any foreign power on anything detrimental to the interest of the country and its people.
A.B.M.S. Zahur is a former Joint Secretary.