Australia, Bangladesh sign Trade and Investment Framework Arrangement

16 Sep '21

2 min read

Pic: Shutterstock

In a recent virtual ceremony, Bangladesh and Australia signed the Trade and Investment Framework Arrangement (TIFA)—the first of its kind between both sides in the last five decades—which is expected to provide a platform for institutionalised economic interactions and for opening newer opportunities for trade and investment between the two countries.

Bangladesh commerce minister Tipu Munshi and Australian minister for trade, tourism and investment Dan Tehan signed the agreement. Munshi invited the latter to visit Dhaka soon. Tehan promised to visit Bangladesh next year with a trade and investment delegation.

Bangladesh's ministry of foreign affairs said in a statement that a joint working group is expected to offer a mechanism to take forward discussion to realise the full potential of trade and investment.

"We would expect the TIFA to address all relevant questions including retention of the duty-free quota-free (DFQF) treatment for Bangladesh in the post LDC graduation (least developed countries), trade liberalisation, creating a conducive atmosphere for greater trade in services and flow of investment," Munshi said.

Tehan assured Bangladesh of continuing the DFQF treatment pending the next review, which is not scheduled in the foreseeable future, according to Bangla media reports.

"Australian has the potential to meet Bangladesh's increasing education, training and energy needs," he added.

Bilateral trade between the two countries has grown six times over the past decade, reaching $2.6 billion last year. Readymade garments, agriculture, food and education services were key drivers of this growth.

Fibre2Fashion News Desk (DS)

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