With the Generalised System of Preferences (GSP) facility from the USA showing little signs of getting restored anytime soon, Bangladesh is now looking towards signing a Free Trade Agreement (FTA) with the USA.
As per media reports, the Bangladesh Tariff Commission (BTC) has recently studied the pros and cons and found that the country could reap financial benefits of such a deal.
“The study shows that an FTA with the USA to trade in goods will be beneficial to us,” reportedly maintained a senior BTC official speaking to the media, adding, “If we can ensure a duty-free entry by signing an FTA deal, the benefit will be huge.”
The BTC official further observed that Bangladesh’s main exportable, apparel, enters the US market by paying a 15 per cent duty on average which makes it less competitive.
It may be mentioned here that USA suspended the GSP facility to Bangladesh back in 2013 after the infamous Rana Plaza collapse, which has not been restored by the former till now.
Given the existing scenario, many are of the opinion that signing a fresh FTA with USA needs to be looked at more actively.