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Growth Hinges on Economic Diplomacy

The American Chamber of Commerce (AmCham) in Bangladesh has been an important trade body that helps promote the US-Bangladesh relations, especially in serving the economic interests of the two countries. Arka Dev Biswas meets AmCham President Syed Ershad Ahmed to understand the potential of this engagement and how to pursue the Bangladesh dream.

Syed Ershad Ahmed leading the AmCham with grit and ambition to bring the US and Bangladesh closer each day.

It takes a lot of effort to be the glue that holds the relations between the two nations together. The bilateral relations between the United States and Bangladesh are held firmly by the American Chamber of Commerce (AmCham) President Syed Ershad Ahmed. Dhaka and Washington have a Trade and Investment Cooperation Forum Agreement (TICFA), which aims to foster trade and investment cooperation significantly. Bangladesh has been working more to further relations with the US which would bring in more investments. With more than $9 billion worth of trade, Bangladesh is ranked the 52nd trading partner of the US. The US is still the single largest export destination for Bangladesh with about US$7 billion annual exports. However, Bangladesh imports from the US valued $2.33 billion a year. A significant trade surplus shows the degree of leverage Bangladesh has in terms of two-way trade.

Syed Ershad Ahmed identifies that Bangladesh has various facets it needs to improve on to attain its goals. ‘In order to gain more investments, we need to focus on labor standards, compliance with rules and Intellectual Property Rights.’ All these ties back to how research and development require greater emphasis from the government as well.

Considering global trade relations, diversification of exports is something that Bangladesh needs at the moment. With the global market moving away from its old trading partners, Bangladesh has the opportunity of a lifetime, the chamber leader thinks. With the demand for goods and services still existing, Bangladesh can expand its export list. Leather, jute, ceramics, bicycles, high-end goods, high-end garments, etc. are just a few in a long list of potential export items. ‘What we have as an advantage is the large population. Our labor cost is relatively lower than most Asian countries; we have a greater percentage of women participation from various rural pockets as well.’ Despite having a large quantity of labor, quality remains a significant barrier. USAID has been trying to improve human capital in the private sector, by providing connections for firms to international investors, who would help in developing the industries in Bangladesh. 

According to the chamber leader, Bangladesh requires a lot of development in terms of road infrastructure, airport land expansion, terminal and coastal shipping development. The pace that infrastructure is being developed at is not the most preferable one to meet the ambition of becoming a developed country by 2041.

The gleaming face of a leader paving the way for the American Dream, in Bangladesh.

In order to attain a balanced and healthy development, Bangladesh must focus on various aspects of development. He emphasizes investing resources in research and development, widening export lists, improving education and health and raising the quality and skills of the labor force.

Syed Ershad Ahmed has observed that much of the rural-urban migration in Bangladesh takes place due to a lack of resource availability and income opportunities in rural areas. More equitable distribution of development can further trading opportunities, he adds.

In order to gain greater prominence on the global stage, Bangladesh needs to reprioritize and project its agendas in a more diplomatic manner. Having diplomats who understand what is needed to present Bangladesh on the global stage. Getting over bureaucratic bottlenecks and allocation efficiency will overall improve conditions. Transparency over how local businesses are run and how foreign investors can catalyze economic growth is something that the US expects in Bangladesh.

Revamping the national education structure is important. It requires proper decision making to go ahead with the growth momentum.

The US Trade Show, organized by the AmCham aims to improve education attainment and dissolve the symmetry of information that exists. Syed Ershad Ahmed says the upcoming 27th US Trade Show aims to inform businesses and students about education opportunities, business and student visa applications and how to enable opportunities.

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