Yunus, Abed talk garment exports with Hillary, seek free access to US

US Secretary of State Hillary Clinton gestures during a talk onstage with students and civil society representatives, organised by the US Embassy at International School Dhaka in the capital yesterday. Photo: SK Enamul Haq

Nobel laureate Prof Muhammad Yunus and BRAC Chairperson Sir Fazle Hasan Abed yesterday urged US Secretary of State Hillary Clinton to allow Bangladeshi garments duty-free access to the US market to help create local jobs, especially for women.

They met Hillary at a breakfast meeting at the US ambassador's residence in Gulshan, Dhaka.

If Bangladesh's garment exports get duty-free access to the US, it would give an impetus to women empowerment in Bangladesh, Yunus said.

"We already have major changes in women's empowerment. If we get the access, several millions of women will get jobs. You (the US) will have to consider it from this aspect," Yunus told reporters after the meeting.

The demand for such access to the US market, the single largest export destination of Bangladeshi products, is a much-hyped issue as Bangladesh, despite being a least developed country, pays high tariff for the access.

Bangladesh, the largest maker of apparel after China and a key garments supplier to Wal-Mart Stores and Tommy Hilfiger, pays an average 15.3 percent duty on its US exports.

Ninety-seven percent Bangladeshi goods have duty-free access to the US market, but the list does not include garments, the main export item of the country, which employs three million people, majority of them women.

Bangladesh pays the US more than $600 million in duty per year, which is almost equivalent to the annual aid the country gets from the US.

Last year, Bangladesh exported goods worth $4.59 billion to the US and imported goods worth $1.09 billion, according to the American Chamber of Commerce in Bangladesh.

Dr Yunus, the Grameen Bank founder, said the special trade treatment is not a business topic only.

“We are talking about business, but the most important thing is that it (duty-free access) will create more employment opportunities,” he said.

“This should be considered from the point that it will make women more independent,” he added.

"She has paid special attention to our demand for the duty-free access of Bangladeshi products. She has not given any immediate assurance, but said that she would consider it," Yunus said, referring to Hillary.

From the impression of the US secretary of state, it appears that Bangladesh has a possibility of getting the duty-free access, said Sir Abed.

The comments from Prof Yunus and Sir Abed came just a week after Prime Minister Sheikh Hasina urged the US to allow such access to boost trade relations between the two countries.

"Bangladeshi products get a duty- and quota-free access to the European Union and many other developed countries. India has also provided us with the privilege for our garments products. So why not the US?" the prime minister questioned, during a meeting in Habiganj on April 30.

"The US is a big country and a big market…It is our people's demand for a duty-free access to the US," said Hasina.

The US offers the benefit to all the least developed countries except Bangladesh, she pointed out. "I don't know why."

The Grameen Bank founder said the issue of microcredit, its future and what other countries are doing about the financial tool were also discussed at the meeting.

"She wanted to know about the condition of Grameen Bank. I have explained the issue to her," Yunus said without elaborating.

Prof Yunus also briefed Hillary on the advancements that took place among the poor women and their children in Bangladesh since her last visit to the country.

He also briefed her on the progress made by Grameen Bank and the problems the bank is facing currently.

Dr Yunus also updated Hillary on the 54 independent companies he set up, which the government plans to bring under the control of Grameen Bank.

Yunus said he mentioned the electricity crisis as a major problem for the country and they have sought support from the US in establishing a regional energy network with Nepal and Myanmar.

Bangladesh is desperately trying to meet its growing energy demand and is seeking to forge partnerships with neighbouring countries to import electricity.

Source: The Daily Star, Monday, May 7, 2012

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Hillary wants garment labour problems addressed

The US secretary of state, Hillary Clinton, attends ‘A conversation with Bangladesh’ in the International School, Dhaka auditorium in the Bashundhara residential area in Dhaka on Sunday. — New Age photo

By Mushfique Wadud

The US secretary of state, Hillary Rodham Clinton said on Sunday Bangladesh should address the labour problems in the garment sector so that big foreign manufacturers did not shy away from investing in the industry here.

‘The labour problems in the garment industries have to be solved because you do not want to earn a reputation as a place where labour leaders and activists are murdered...,’ Hillary said at a question-and-answer session with students and youth leaders at International School Dhaka in the capital.

Terming ‘worrisome’ the labour problems in the garment sector, she said the country should address the issue ‘because in today’s world that will cause big manufacturers of clothing to be afraid to stay or come to Bangladesh.’ 

Students from different schools, colleges and universities and young leaders joined the session which was the last programme of her 24-hour visit to Bangladesh.

Referring to the recent murder of labour leader Aminul Islam, Hillary said that an independent investigation into his killing was needed and the perpetrators should be brought to justice...‘because, certainly, his [Aminul’s] family and friends deserve answers about what happened to him.’

Hillary said it was a real test for the government and for the society ‘to make sure that you don’t say that anyone can have impunity. That is the key issue for the rule of law.’

She said that no one should be above the law no matter how powerful they were.

‘There needs to be total rule of law with no impunity,’ she said.

Labour leader Aminul Islam went missing in April, and his body was found two days later outside Dhaka.

Hillary urged the government, garment manufacturers and labour organisations to work together so that Bangladesh remained a very important destination for foreign investors.  

To a question on Grameen Bank, the US secretary of state advised the Bangladesh government not to do anything that could undermine or affect the successes of the bank.

On the political situation here, Hillary said that she had told prime minister Sheikh Hasina and opposition leader Khaleda Zia that they needed to work together. ‘I told them I wish you could figure out ways to work together…’

A national unity was needed in Bangladesh, she said.

Students interacted with Hillary with cheers during the session that lasted about an hour from 11:00am.

Hillary was in Dhaka on a two-day official visit starting from Saturday. The two countries signed a ‘joint declaration on Bangladesh-US partnership dialogue’ creating scope for regular annual consultations at foreign minister and foreign secretary levels on bilateral issues.

Hillary, who was on a tri-nation tour of China, Bangladesh and India starting May 3, left Dhaka for Kolkata at about 12:15pm on Sunday.

It was her third visit to Dhaka after 1995 and 2000.

Source: New Age, Monday, May 7, 2012

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Trade, defence, cooperation top agenda

File Photo: Hillary Clinton

The USA is likely to push for a framework for defence cooperation between Dhaka and Washington during US Secretary of State Hillary Clinton's May 5-6 visit to Bangladesh.

It will press for signing the much-talked-about Trade and Investment Cooperation Forum Agreement (Ticfa) and strategic partnership deals with Bangladesh.

Dhaka, however, wants to proceed with caution in respect of signing any deal with Washington, and it is not ready to ink any deal with Washington during Clinton's 24-hour visit.

Duty-free and quota-free access of Bangladeshi apparel to the US market and deportation of Lt Col AM Rashed Chowdhury, condemned killer in Bangabandhu murder case, will figure prominently in the talks between the two sides.

Washington may offer stronger cooperation and partnership in gas exploration, and in power and energy sectors.

As part of her three-nation tour (Bangladesh, India and China), Clinton is expected to arrive in Dhaka at 4:00pm on May 5 and hold meetings with government high-ups, opposition leaders and civil society representatives to discuss US-Bangladesh cooperation in political, economic and security matters.

According to the draft programme schedule, on her arrival, she will first hold talks with her Bangladesh counterpart Dipu Moni at the foreign ministry. They will discuss political, security and economic cooperation between the two nations. The talks will be followed by a joint press conference.

Clinton will later call on Prime Minister Sheikh Hasina and discuss a wide range of bilateral issues. The foreign minister will host a dinner in honour of the US Secretary of State.

On May 6, she will hold a meeting with the Leader of the Opposition Khaleda Zia, Nobel Laureate Prof Muhammad Yunus and civil society representatives. She is expected to leave Dhaka for Kolkata at about 3:30pm.

They said the top US diplomat would discuss with Dipu Moni the issue of the death of Aminul Islam, a leader of Bangladesh Garment and Industrial Workers Federation, who was picked up and tortured to death allegedly by law enforcers.

International rights bodies strongly condemned the incident and demanded proper probe into his death.

Four US officials yesterday met high-ups at the foreign ministry and discussed issues relating to Clinton's upcoming visit.

Sources said Clinton's meeting with Khaleda will feature many issues including political repression and harassment, disappearance of political leaders, violation of human rights, the caretaker government and the next general election.

Diplomatic sources said her upcoming visit is very crucial and has a special significance in strengthening ties between the two nations.

They said the US that is still unhappy with Prof Yunus' removal from Grameen Bank wants partnership with Bangladesh as it has special strategic importance to the USA in the present global and regional circumstances.

Officials at the foreign and the commerce ministries said Dhaka is yet to decide on signing the Ticfa agreement. It is still scrutinising the deal to figure out its future implications.

The Ticfa promises to protect investments, remove obstacles in bilateral trade and create a forum for discussing issues relating to trade and investment.

Although both the sides reached an understanding over the key issues laid down in the trade deal, Dhaka is yet to complete formalities to ink the agreement.

Similarly, no decision has been made about signing a “strategic partnership” or defence deal with Washington at this moment.

However, senior government officials said there wouldn't be any big problem in completing all procedures to sign an agreement if both the governments wish so.

“In the past, we had completed procedures overnight. So, the possibility of signing agreements during Hillary Clinton's visit cannot be ruled out,” said a government high-up.

Dhaka has proposed forming a joint commission to create a regular forum to discuss issues regarding security cooperation, said government officials.

Diplomatic sources said Washington wants more engagement with Dhaka in the area of security cooperation. The US believes that Bangladesh's role is vital to maintaining security in the Bay of Bengal. Besides, it considers Bangladesh as an active partner in regional counterterrorism efforts, they said.

They said USA's desire to enhance military engagement with Bangladesh is evident in the recent visits by US high-ups, including Andrew J Shapiro, US assistant secretary of state of Political-Military Affairs, and the first-ever Bangladesh-US Dialogue on Security Issues held in Dhaka on April 19.

On April 24, Shapiro said at the Carnegie Endowment Roundtable in Washington, DC that defence ties between the USA and Bangladesh are one of the most robust in South Asia.

“Bangladesh is a key player in maintaining security in the Bay of Bengal. They are an active partner in regional counterterrorism efforts and we are working to enhance their ability to respond to natural disasters,” he said.

“Our cooperation with Bangladesh is a prime example of how US security assistance can play a critically important role in our diplomatic engagement,” Shapiro said at the roundtable.

Diplomatic sources said the USA wants a “strategic partnership” deal with Bangladesh to create a regular forum to discuss issues like counterterrorism, food security, climate change and energy. But it is yet to put forward a formal proposal for signing such an agreement, they said.

Foreign ministry officials said the commerce ministry had sent the Ticfa draft to the Prime Minister's Office for its opinion.

They said the ministry was of the opinion that the government should do an in-depth scrutiny of the Ticfa to know about its future implications and impacts.

“We [the foreign ministry) are not in favour of inking any deal hurriedly. But there are people in the government for signing agreements on trade and defence cooperation without delay to improve Bangladesh-US ties that suffered serious setbacks in recent times,” said a senior government official asking not to be named.

On December 1, last year, Dan Mozena, US ambassador in Dhaka, said at a press conference, “Washington wants to sign the trade agreement, which is moving forward, to create a forum for discussing full range of issues relating to trade and investment.”

News: The Daily Star, Tue, 01/05/2012

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