Signing of a free trade agreement (FTA) between Bangladesh and the UK can help boost bilateral trade and investment, said Rupa Huq, a member of parliament (MP) in the UK with Bangladeshi origin, yesterday.
Now is the perfect time to sign the FTA as both countries have good business and investment potential, she said.
Exports to the UK must be expanded beyond garments as it is the dominant product in the list of shipments, she told a press conference in Hotel Sarina in Dhaka.
Huq came on a visit to Bangladesh with a trade delegation of the UK Bangladesh Catalysts of Commerce and Industry (UKBCCI), which represents British and Bangladeshi entrepreneurs in the UK and Bangladesh.
Amir Khasru Mahmud Chowdhury, a BNP standing committee member, also supported signing of the FTA, saying it was a good way to generate more business through the liberalisation of the economy.
The FTA does not mean the entry of goods would be free for all, rather it will help ease bilateral trade and investment, said Chowdhury, also a former commerce minister.
The first assignment of a bureaucrat should be to facilitate trade of the country and protectionism does not help trade anymore, he added.
Iqbal Ahmed, a British businessperson of Bangladeshi origin and chairman of the UKBCCI, suggested easing business processes in Bangladesh as many investors want to invest in the country.
He said the visiting delegation wants to invest at least $500 million in different sectors of in Bangladesh such as in textile and garment, ICT, pharmaceuticals, and farming.
But the amount should have been at least $5 billion as the UK investors are investing outside of their own country, he added.
However, the ease of doing business in Bangladesh is still complex, he said, adding that at least 12 signatures were still required at present to start a business in the country.
He also said he had started exporting vannamei shrimp from Bangladesh to the UK but on a very limited scale.
India exports vannamei worth $10 billion to the UK in a year while Vietnam $16 billion and the sky is the limit for exporting to the UK, he said.
Bangladesh’s annual exports to the UK amounts to $4.5 billion, whereas India sends that worth $30 billion and China $60 billion, he said.
Showkat Aziz Russell, regional president of the UKBCCI, highlighted the mission’s emphasis on Bangladesh’s robust ready-made garment (RMG) sector.
“Bangladesh is globally recognised for its strong manufacturing capabilities and is a key hub for apparel sourcing,” he said.
“This mission seeks to capitalise on the country’s edge in global export competitiveness while fostering innovation in design and manufacturing,” he said.
The textile sector, which contributes over 13 percent to Bangladesh’s GDP, is also a key focus of the delegation, he said.
With investments exceeding $22 billion, the textile industry accounts for more than 84 percent of Bangladesh’s export earnings and retains over 30 percent of foreign currency, he said.
The mission aims to leverage these strengths and encourage further investment in this critical industry, he said.
Md Hafizur Rahman, administrator to the Federation of Bangladesh Chambers of Commerce and Industry, said the UK has already committed to continuing to provide Bangladesh duty-free trade benefits like the European Union (EU).
This will come about for three more years after Bangladesh makes the country status graduation from a least developed country to a developing nation in 2026, he said.
Afterwards, the UK, like the EU, will also provide facilities under the GSP Plus arrangement, the administrator said.