After the United States, Bangladesh is going to sign a Trade and Investment Framework Agreement (TIFA) with Australia. The deal has been finalized. The two governments have agreed to sign the agreement on September 15. Once the agreement is completed, Australian companies will have priority in trade and investment in all sectors of Bangladesh. Bangladesh will also get similar benefits.
Secretary of the Ministry of Commerce Mr. Tapan Kanti Ghosh said that the vetting of the agreement from the Ministry of Law has already been completed. The Australian government has also approved the deal. It has been decided that the trade ministers of the two countries will sign the agreement through virtualization next month.
The total trade volume between the two countries is just under Dollar 2 billion. In the last financial year, Bangladesh exported goods worth Dollar 834 million to Australia and imported goods worth Dollar 887 million. Bangladesh's export products include ready-made garments, medicines, ceramics, leather and leather products.
The Commerce Ministry says the bilateral agreement was preceded by a meeting with the beneficiaries. Inter-ministerial views have been taken. After the draft agreement was finalized and sent to Australia, the country's government approved it. After reviewing the draft agreement that Australia sent last year, Australia has mentioned investment assistance in all sectors of Bangladesh through TIFA.
Article 3 of the draft states that the TIFA framework includes discussions on all types of investments, including garments, agriculture, agribusiness, fisheries, food and beverages, power and energy, manufacturing, information and communication technology, skills development and education. There will be opportunities. Article 1 of the draft states that the two partners will play a role in expanding trade in both services and goods. Take necessary steps to increase the investment opportunities of each other's companies or organizations. It will also give priority to each other's companies to diversify trade and investment. Article 2 states that a joint working group will be formed to discuss trade and investment issues between the two countries.
What's in the draft: The basic principles outlined at the beginning of TIFA's draft are: (1) to improve bilateral economic relations based on mutual understanding and customary law in their respective countries; (2) to identify potential areas for bilateral trade and investment; (3) to ensure a transparent and open environment for accelerating international trade, investment and economic cooperation; (4) The two countries will provide each other with foreign investment opportunities which will play a positive role in growth, employment and economic development; And (5) both countries will encourage private sector communication.
Some aspects of the agreement have been amended with the views of both parties. However, the basic principles of trade and investment expansion remain the same.
Mr. Abdur Rahim Khan, Joint Secretary (Export-II), Ministry of Commerce, said the agreement would focus on expanding bilateral trade and investment. Under the agreement, the two countries will have two committees, which will meet at least once a year.
Earlier in 2003, the United States proposed a TIFA agreement to Bangladesh, but Bangladesh did not agree to it. Later, the United States changed some issues and proposed a TICFA agreement instead of TIFA. After the Rana Plaza tragedy in April 2013, Bangladesh signed the TICFA agreement with the United States in November of that year. TIFA is now being ranked second with Australia. The proposed agreement between Bangladesh and Australia is called the Trade and Investment Framework Agreement (TIFA).
Source: Online/KSU
Comment Now