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UK and Bangladesh Strengthen Trade and Investment Ties, Paving the Way for Economic Growth and Job Creation

  A Growing Partnership

The United Kingdom is committed to building a robust trade and investment partnership with Bangladesh that will not only bolster the economies of both nations but also create numerous job opportunities. According to recent data, the total trade in goods and services between the UK and Bangladesh reached an all-time high of £4.7 billion by the close of 2022.   Minister for International Trade Nigel Huddleston said “The UK has a strong and enduring relationship with Bangladesh, and our trade with the country has grown significantly over the past year. “My first visit here demonstrates the UK’s strong ambition to work with Bangladesh to achieve an enhanced trade and investment relationship. I look forward to working with the Government of Bangladesh on increasing mutual prosperity by addressing barriers to market access and trade.”  

Strengthening Aviation and Creating Job Opportunities

During his visit, Minister Huddleston is scheduled to meet with Salman F Rahman MP, Private Industry and Investment Adviser to the Honourable Prime Minister Sheikh Hasina. The main focus of their discussions will revolve around the Aviation Trade and Investment Partnership, which was signed between the UK and Bangladesh in May 2023. This partnership aims to bolster Bangladesh's aviation sector and foster job creation in both countries, opening doors to new opportunities for growth and development.  

Streamlining Trade with the UK

Another crucial aspect of the talks will be the UK's world-leading Developing Countries Trading Scheme (DCTS), which came into effect just last month. Minister Huddleston is set to engage with Tipu Munshi MP, Honourable Commerce Minister of Bangladesh, to discuss the DCTS and its implications for bilateral trade. This scheme simplifies and enhances trade between Bangladesh and the UK, granting Bangladeshi exporters the advantage of simpler and more generous Rules of Origin. As a result, exporters can now utilize components from a broader range of countries while still enjoying zero tariffs on their exports to the UK.  

Paving the Way for a Thriving Aviation Industry

Following the joint communique on the Aviation Trade & Investment Partnership, Minister Huddleston will hold talks with Mahbub Ali MP, Honourable State Minister for Civil Aviation and Tourism. The focus of these discussions will be the UK's offer to assist Bangladesh in realizing its ambition of becoming the next aviation hub in South Asia. By capitalizing on the UK's expertise and support, Bangladesh aims to establish a robust and competitive aviation industry that will attract investment and drive economic growth in the region.  

A Rich History of Trade Relations

The current efforts to strengthen trade ties between the UK and Bangladesh build upon a longstanding history of economic collaboration. The relationship dates back to the colonial era, when Bangladesh, then known as East Bengal, was part of British India. The British Empire played a significant role in shaping the region's economy, particularly in sectors such as jute and tea production. Following Bangladesh's independence in 1971, trade between the two nations continued to flourish. The UK became one of Bangladesh's key trading partners, with bilateral trade growing steadily over the years. The UK has been an essential destination for Bangladeshi exports, including garments, textiles, pharmaceuticals, and agricultural products. Over time, both countries have recognized the immense potential for further economic cooperation. Efforts to diversify trade have been ongoing, aiming to expand beyond traditional sectors. The UK's expertise in areas such as finance, technology, and infrastructure development can complement Bangladesh's focus on manufacturing, agriculture, and services.   A New Era of Collaboration Minister Huddleston's visit signifies a renewed commitment to deepening the trade relationship between the UK and Bangladesh. By focusing on key areas such as aviation, the two countries aim to unlock new avenues for growth and investment. The Aviation Trade and Investment Partnership holds significant promise for Bangladesh's aviation sector, positioning it as a regional hub in South Asia. The UK, with its rich history in aviation and advanced expertise, is well-equipped to support Bangladesh in achieving this goal. Collaboration in areas such as infrastructure development, training, and technology transfer will create a strong foundation for the growth of the aviation industry, generating employment opportunities and boosting economic prosperity. Furthermore, the implementation of the Developing Countries Trading Scheme opens up new doors for Bangladeshi exporters. The scheme simplifies trade procedures and provides preferential access to the UK market, enabling Bangladeshi businesses to expand their reach and tap into new opportunities. By leveraging the simplified Rules of Origin, Bangladeshi exporters can source components from various countries, enhancing their competitiveness and fostering trade growth. A Promising Future As Minister Huddleston engages in high-level discussions with key stakeholders in Bangladesh, the stage is set for a new era of collaboration and economic growth. Both countries recognize the importance of a strong trade and investment partnership in fostering prosperity and job creation. By capitalizing on their respective strengths and synergizing efforts, the UK and Bangladesh can pave the way for a thriving future. With a shared vision of expanded trade, enhanced market access, and sustainable development, the partnership between these two nations holds the potential to unleash a wave of economic opportunities, benefiting businesses, workers, and consumers on both sides.  

In conclusion

The history of trade relations between the UK and Bangladesh provides a solid foundation for the current efforts to strengthen ties. Minister Huddleston's visit and the focus on areas such as aviation and trade facilitation underscore the commitment of both nations to build a mutually beneficial and sustainable partnership. As they navigate the challenges and seize the opportunities, the UK and Bangladesh are poised to create a path towards economic growth, job creation, and shared prosperity in the years to come.   Sources: THX News & British High Commission Dhaka. Read the full article