Signing of a Free Trade Agreement (FTA) between Bangladesh and the United Kingdom could significantly boost bilateral trade and investment, Rupa Huq, a UK Member of Parliament of Bangladeshi origin, expressed.
Speaking at a press conference at Hotel Sarina in Dhaka, Rupa Huq emphasized the timeliness of such an agreement, highlighting the business and investment potential in both countries. She noted that Bangladesh should diversify its exports to the UK, where garments currently dominate the shipment list.
Rupa Huq was joined by a trade delegation from the UK Bangladesh Catalysts of Commerce and Industry (UKBCCI), which represents British and Bangladeshi entrepreneurs. The delegation expressed strong interest in investing in Bangladesh.
Calls for Easing Trade Barriers
Amir Khasru Mahmud Chowdhury, BNP standing committee member and former commerce minister, also advocated for the FTA, emphasizing its role in liberalizing the economy and easing bilateral trade. Chowdhury noted that protectionist policies hinder trade and urged bureaucrats to focus on facilitating commerce.
Iqbal Ahmed, UKBCCI chairman and a British entrepreneur of Bangladeshi origin, highlighted Bangladesh’s untapped potential, revealing that the delegation aims to invest $500 million in sectors like textiles, ICT, pharmaceuticals, and farming. However, he cautioned that complex business processes in Bangladesh remain a deterrent for larger investments.
“At least 12 signatures are still required to start a business here,” Ahmed said, adding that countries like India and Vietnam significantly outperform Bangladesh in exporting high-demand products like (white leg) vannamei shrimp to the UK.
Expanding Trade Horizons
Bangladesh’s annual exports to the UK currently stand at $4.5 billion, compared to $30 billion by India and $60 billion by China. Showkat Aziz Russell, regional president of the UKBCCI, stressed the need to capitalize on Bangladesh’s robust RMG sector, which accounts for over 84% of the country’s export earnings.
“This mission seeks to leverage Bangladesh’s competitive edge in global apparel manufacturing while encouraging innovation and investment,” Russell said.
Future Trade Benefits
Md Hafizur Rahman, of the Federation of Bangladesh Chambers of Commerce and Industry, noted that the UK has committed to providing duty-free trade benefits for three years after Bangladesh transitions to a developing nation in 2026. Post-graduation, the UK is expected to extend trade facilities under the GSP Plus arrangement, similar to the European Union.
The discussions underscored the need for streamlining business operations, reducing bureaucratic hurdles, and fostering political and economic stability to maximize the benefits of an FTA.
Photo Courtesy by : Dhaka Tribune
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