Bangladesh today approved a major trade agreement with the US amid Western concerns about lax labour and intellectual property laws in this country.
"The Trade and Investment Cooperation Framework Agreement (TICFA) agreement will ensure protection of intellectual property, curb corruption and ensure labour rights," said Bangladesh Cabinet Secretary Mosharraf Hossain Bhuiyan after a meeting chaired by Prime Minister Sheikh Hasina.
He added that the agreement having 16 chapters was now expected to be signed respecting the prevailing laws of both countries while Bangladesh felt that the proposed deal was required to reduce chances of unilateralism by the US in areas of trade and investment.
The agreement, he said, would offer Bangladesh and the United States a platform to discuss bilateral trade issues, including the trade barriers and opportunities and also investments in the two countries.
India, Pakistan and Vietnam are the only countries in the region which signed identical agreements with the United States earlier.
Bilateral trade between the countries totalled USD 5.4 billion in 2012, according to US figures.
The cabinet decision came as recent reports said Washington insisted Bangladesh to sign this agreement while analysts said the superpower now could soften its rigid stance against continuing Generalised System of Preferences (GSP) facilities for Bangladesh.
The cabinet secretary, however, declined there were any US pressure on Dhaka for signing the deal while Commerce Minister GM Quader recently said TICFA was not a pre-requisite for continued GSP facility or US duty waiver scheme for Bangladeshi products.
The GSP facility for Bangladeshi products appeared uncertain US workers rights group American Federation of Labour and Congress of Industrial Organisations last year filed a petition with the United States Trade Representative to discontinue the GSP for poor factory standards particularly in garments units endangering workers lives.
Dhaka continued to lobby to retain the GSP, as USTR was set to deliver its decision.
Earlier reports said Bangladesh was almost ready to sign the agreement but some unresolved issues stopped them from penning the deal with security, protection of investment, intellectual property rights and standard of labour appearing as the main obstacles.
Trade and foreign relations analysts, however, called the decision a move to send the US administration a positive signal.
Foreign relations expert Professor Imtiaz Ahmed of Dhaka University, however, thought the US may attach some difficult conditions even if it reconsiders its stance on continuation of GSP facility.
"President Barack Obama's decision on the GSP facilities is due by June 30 and the nod on TICFA might be the last ditch effort by the current government to secure the facilities," he said.
