‘Bangladesh missing out on US investment’

US Ambassador to Bangladesh Peter Haas said concerns over working conditions and labour rights are some factors causing Bangladesh to miss out on a massive source of investment capital from the United States and Bangladesh needs to focus on this in order to increase its foreign investment.

The US ambassador was addressing an event titled “US-Bangladesh Business Forum: Building on 50 Years of Friendship ‘’ held in a city hotel on Tuesday night hosted by HSBC Bangladesh, in partnership with the US-Bangladesh Business Council (USBBC).

While low-cost labour is responsible for Bangladesh’s growth until now, concerns over working conditions and labour rights will become the crux of trade decisions as Bangladesh transitions to a middle-income country, he mentioned.

He said: “Concerns over labour rights and working conditions cost Bangladesh access to the U.S. Generalized System of Preferences trade benefit, or GSP, in 2013. The European Union has given notice that the same concerns will determine if its trade benefits for Bangladesh continue after it becomes a middle-income country. These same concerns are also causing Bangladesh to miss out on a massive source of investment capital from the United States.”

“The U.S. Development Finance Corporation, or DFC, was established by Congress with a $60 billion investment authorization. DFC partners with U.S. businesses to develop projects in sectors such as energy, healthcare, critical infrastructure, and technology. DFC would be an ideal financing source for projects in Bangladesh. Unfortunately, until Bangladesh qualifies for GSP it cannot qualify for DFC financing,” he added.

The US envoy hoped that Bangladesh will soon make progress on labour rights and workplace safety so it can qualify for DFC and attract more US trade and investment.

He also said that there are strong reasons to look at Bangladesh for market opportunities and Bangladesh is worthy of their attention.

According to the envoy, firstly, Bangladesh has been among the fastest-growing economies in the world over the past decade.

Secondly, as the eighth-most populous country in the world with 165 million people, it has more than twice the population of the UK, four times that of Canada.

Thirdly, Bangladesh is poised to take advantage of its demographic dividend. Its workforce is young and increasingly well-educated.

Fourthly, Bangladesh is uncharted territory for many US companies that enter the market early and boldly will face significantly less competition than they would if they were entering a more mature investment destination.

He said a company considering doing business overseas will certainly want to see a developed transportation system, access to power and water, and a well-trained workforce. “Bangladesh has made great strides in filling these needs.

“A company wants a policy framework that is understood and laws that are consistently enforced. A company wants confidence its intellectual property will be protected. A company wants to know that if a dispute arises it has access to courts that can quickly and fairly settle it”

How will Bangladesh compare with their competitors when these questions are asked? the envoy argued.