September 24, 2024
DHAKA – The bilateral meeting between Chief Adviser Prof Muhammad Yunus and US President Joe Biden due today provides a rare opportunity for Dhaka to push for improving trade and boost the economy, say analysts.
Biden agreeing to meet with Yunus on the sidelines of the UN General Assembly in New York signals Washington’s eagerness to support Bangladesh’s interim government.
Diplomatic sources said the US president usually goes to the UNGA for a short time and holding any bilateral meetings with the head of the Bangladesh government is rare.
“This signals that Washington wants to seriously engage with Dhaka because Bangladesh is important for the US and Prof Yunus has a global standing,” said Obaidul Haque, associate professor at Dhaka University’s International Relations Department.
He said the US has been trying to deepen the engagement with Bangladesh over the last few years, but it was not going very well. Now that the interim government has taken up initiatives for widespread reforms, and promised democratic elections and good governance, Washington is showing increasing interest.
The US suspended the Generalized System of Preferences (GSP) facility for Bangladesh in the aftermath of Rana Plaza collapse in 2013, citing poor labour conditions. In 2021, it imposed sanctions against Rab and seven of its top officials over human rights violations and in May last year announced visa restrictions for those undermining democratic elections.
Former prime minister Sheikh Hasina made critical remarks of the US that was vocal about human rights, media freedom, and free and fair election ahead of the national polls on January 7 this year.
With the changed political landscape, the Dhaka-Washington relations appeared to take a new trajectory.
A six-member US delegation, led by Treasury Department’s Assistant Secretary Brent Nieman, visited Dhaka in mid-September, the first foreign delegation’s tour after the interim government was formed.
The delegation said Washington would be happy to support Prof Yunus’ reform agenda and expressed eagerness to offer technical and financial assistance for reforms.
According to foreign policy analysts, Bangladesh’s main challenge is now the economy, and the reforms agenda being taken up will be successful if the economic challenge can be addressed. Things may be different otherwise.
With better political understanding, Bangladesh may secure greater economic benefits and have access to new avenues for much-needed external funds, at favourable conditions, said Mohammad Sufiur Rahman, a senior research fellow at the South Asian Institute of Policy and Governance at North South University.
Even with about 18 percent duty, Bangladesh’s export to the US is close to $8 billion and it can be easily increased by a few billion if there is a duty-free quota-free facility, and non-tariff barriers are addressed.
“The US administration may, if felt imperative to do so, consider flexible ways and special vehicles to offer GSP facility to Bangladesh in the changed circumstances,” he told The Daily Star yesterday.
With Washington’s support, the International Monetary Fund, the World Bank, and the Asian Development Bank may favour allocating funds for Bangladesh. Such support will have positive impacts on the overall economy because the funding will lead to economic stabilisation, employment generation, and increased wages, he said.
These in turn can embolden the interim government’s resolve and capacity to secure improved governance, higher labour standards, and better human rights. Such a positive spiral can also encourage greater economic interaction and quality investments from other Western countries.
“If the US companies can be encouraged to invest in the IT sector of Bangladesh and the Bangladeshi IT experts in the US can be connected to our IT industry, it can significantly increase Bangladesh’s IT-related services export. The same can happen with other cutting-edge technologies if the US shows keenness only with deeper political understanding, trust, and confidence,” said Sufiur, Bangladesh’s former permanent representative to the UN offices and international organisations in Geneva.
Sufiur said over the last years of the Awami League government, Bangladesh had to depend more on China for its failure to bridge gaps with the US and the West, and there is a real chance of striking a balance now.
DU teacher Obaidul said Washington can also provide budgetary support, which is much needed in Bangladesh.
He said the export of Bangladeshi readymade garments saw a decline amid recent demonstrations and subsequent unrest, and US support towards this end will be extremely helpful.
Washington can also support Bangladesh’s reform process, including in financial and security sectors.
“If Bangladesh improves in human rights, labour rights, and governance sectors, and eventually the sanction against Rab is withdrawn, this will have positive impacts on Bangladesh’s export to the Western countries,” Obaidul added.
Analysts said Prof Yunus, who has earned US trust, is expected to discuss these aspects and take forward the US-Bangladesh relations to a new level.
Dhaka needs to ensure that it maintains a balanced foreign policy, they added.