Extending the UK’s full support to Bangladesh to chart a “peaceful transition” to an “inclusive, prosperous and democratic” future, its trade envoy for Bangladesh Baroness Winterton of Doncaster DBE on Wednesday said there is a fresh impetus for the two countries to refresh their bonds and work ever more closely together on economic, trade and investment fronts.
“The UK and Bangladesh economic, trade and investment relationship is stronger than ever. I can tell there is a fresh impetus for us to refresh our bonds and work ever more closely together,” she said, adding that the UK will remain a steadfast partner to Bangladesh, and their businesses and people in both countries will play an important role in that endeavour.
Speaking at the Bangladesh Investment Summit’s formal inaugural session, the British trade envoy said today’s event lays the foundation for unlocking these opportunities. Chief Adviser Prof Muhammad Yunus attended the event as the chief guest.
She said one of the challenges that affect everyone in Dhaka is its infamous traffic, which really dents productivity.
“That is why London’s transport authority, Transport for London, is working with Dhaka city authorities to test ideas that can help reduce traffic jams,” Baroness Winterton said.
Keen to Expand Operations
The trade envoy said she is aware that many British and international businesses see the growth and opportunities of this market and want to expand their operations here.
“But at the same time, we also hear concerns from businesses about laws, regulations and red tape that make it more difficult for them,” she said, adding that they are keen to help Bangladesh take full advantage of global business through an enhanced and enabling environment that rationalises the cost of doing business, removes regulatory bottlenecks and ensures protection for intellectual property rights.
The UK welcomed BIDA’s steps to implement as many reforms as quickly as possible – this is injecting confidence to foreign investors that Bangladesh is open for business.
“We are providing technical expertise to BIDA to develop its analytical capability, continuing a collaboration that goes back more than 20 years.”
Moving to the climate partnership that they are working together to unlock investment in clean energy and climate adaptation solutions, she said they want to harness the UK’s world leading financial sector and renewable energy expertise to help deliver Bangladesh’s climate ambitions.
Post LDC-era
As Bangladesh prepares to engage and enhance its trading relationships in the post-LDC era, the trade envoy said her government is providing technical assistance to the Ministry of Commerce to strengthen their capability on trade policy and negotiations.
The Revenue & Customs will be providing capacity building support to the customs wing of the National Board of Revenue to enhance trade facilitation.
“Taken together, these initiatives constitute significant UK contributions for Bangladesh’s LDC graduation process,” she said.
Moreover, in support of the Interim Government’s economic priorities, the UK is playing a proud role in supporting macro-economic stability and restoring confidence in Bangladesh’s banking sector.
This allows Bangladesh tap into the world-leading UK expertise in the financial services sector and build resilience in countering economic headwinds.
She said their development financial institution, British International Investment, recognises Bangladesh as a “powerhouse market”. It is investing $450m in Bangladeshi companies between 2022 and 2026.
Sitting alongside this, she said their export credit agency, UK Export Finance, remains committed to supporting private sector growth with up to £2bn cover available to support projects in Bangladesh across all sectors.
Much Closer Defence Collaboration
In defence, Baroness Winterton said they both share a deep and enduring commitment to a free and open Indo-Pacific.
“There is significant potential for much closer defence collaboration over the coming years, building on our enduring military-to-military partnership. I see opportunities to unlock ready-to-go opportunities in the maritime sector and in wider defence procurement partnerships,” she said.
Baroness Winterton said the UK is also committed to supporting Bangladesh’s ambition to becoming a knowledge-based economy.
UK intensely focused on building economic partnership with Bangladesh, says its trade envoy
“Transnational education, or TNE, plays a vital role in this by bringing world class UK education directly to Bangladeshi students. This not only equips graduates with the skills needed for the global workforce but also strengthens Bangladesh’s appeal as an investment destination,” she said.
The trade envoy said while some excellent UK TNE programmes already exist here, they see significant potential to expand these partnerships.
The UK government, through initiatives led by the British High Commission and the British Council in Dhaka, is actively working to foster an environment where these collaborations can flourish, she said, adding that they believe that by working together, they can further strengthen the educational ties between our nations, benefitting both the economies and people.
“So now as Bangladesh diversifies, I call to action British companies across all industries to come out to Bangladesh and seize the opportunities here,” said the trade envoy.
She was with Bangladesh Investment Development Authority (BIDA) Executive Chairman Ashik Chowdhury last month at the UK Government’s Indo-Pacific Trade Roadshow in London and she heard him share the exciting prospects to do business in this country.
“As he and I discussed, I am particularly pleased that we are working closely with Bangladesh on our shared ambitions in aviation, defence, financial services, higher education and the transition to cleaner economic growth,” Baroness Winterton said.
The UK and Bangladesh has a shared endeavour of economic growth, job creation and prosperity – as this Summit exemplifies.
Sustainable Future for Rohingyas
On the Rohingya crisis, she said the world has witnessed the generosity of the Bangladeshi people for welcoming over a million Rohingya refugees who fled persecution and violence in Myanmar.
“As we enter the eighth year of this crisis, the situation in Myanmar remains bleak,” she said, adding that the UK has unwavering support for Bangladesh and the Rohingya people.
Baroness Winterton said they will continue to do everything they can to support those in need, while actively working towards a safe, dignified, and sustainable future for the Rohingya people.
The UK extended its heartfelt thanks to Bangladesh for its generous hospitality in hosting the refugee population.
Baroness Winterton said the UK is working with the interim government on their priorities to restore law and order, ensure accountability and promote national unity.
As the UK government now focuses on growth and jobs, and places this at the heart of their foreign policy, she said the UK remains “laser-focused” on building the economic partnership that will boost two-way trade and investment between the two countries.
The UK is one of the biggest sources of Foreign Direct Investment in Bangladesh. It is the third largest market for Bangladeshi ready-made garments; and Bangladesh is the biggest beneficiary of the UK’s trade preference scheme, the Developing Countries Trading Scheme.
“This gives Bangladesh duty free and quota free access to the UK market until 2029. And after that date, 92% of Bangladesh’s exports will continue to get duty free access to the UK,” said the British trade envoy.
The scheme also encouraged Bangladesh to diversify its exports to the UK beyond garments - laying the groundwork for Bangladesh’s economic security ahead of LDC graduation next year.
The envoy said the Developing Countries Trading Scheme provides opportunities for UK buyers and Bangladeshi suppliers across an increasing range of products.
Óscar García Maceiras, CEO of Inditex and Apex Footwear Limited Managing Director Syed Nasim Manzur spoke as the government wanted to know foreign and local investors’ views on the investment front.
Advisers of the interim government, including Finance Adviser Dr Salahuddin Ahmed, Foreign Affairs Adviser Md Touhid Hossain, Commerce Adviser Sk Bashir Uddin, Law Adviser Dr Asif Nazrul and Executive Chairman of Bangladesh Investment Development Authority (BIDA), among others, joined the inaugural event.
SDGs Affairs Principal Coordinator Lamiya Morshed and Chief Adviser's Press Secretary Shafiqul Alam also joined the event where Special Envoy Lutfey Siddiqi welcomed all.