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Ex-Envoy: India Unfazed by Bangladesh-US Trade Deal, Cites Economic Realities

Former Indian High Commissioner to Bangladesh Veena Sikri asserts India has no reason for concern over the new US-Bangladesh trade agreement. She explains that the tariff benefits for Bangladesh are tied to buying US-manufactured yarn and cotton, sectors where India already supplies goods competitively and quickly. Sikri also highlights Bangladesh's potential financial strain from purchasing Boeing jets, suggesting it may require IMF loans. The agreement was signed by senior US and Bangladeshi trade officials, marking a step in strengthening bilateral economic relations.

Key Points: India Shouldn't Worry About Bangladesh-US Trade Deal: Ex-Envoy

  • India's textile supply is competitive
  • Bangladesh lacks funds for Boeing jets
  • Deal focuses on US yarn and cotton
  • New pact strengthens US-Bangladesh ties
2 min read

India shouldn't worry about B'desh-US deal: Former High Commissioner to Dhaka

Former High Commissioner Veena Sikri says India's competitive edge in textiles and Bangladesh's financial constraints negate concerns over the new US trade pact.

"I don't think we should be worrying at all... - Veena Sikri"

New Delhi, February 11

On the Bangladesh-US reciprocal trade agreement, Veena Sikri, Former High Commissioner of India to Bangladesh, said that India should not worry.

Sikri, while talking to ANI, said that though Bangladesh promised to buy Boeing jets, it doesn't have the money to pay for them.

She said, "I don't think we should be worrying at all for two reasons. First of all, the places where Bangladesh is likely to receive zero tariffs for access to the American market are linked to Bangladesh's purchases of man-made yarn, cotton yarn, and maybe even cotton from the USA. Secondly, these items were supplied by India at very competitive prices and with very quick turnaround times. So a Bangladesh exporter could actually get these goods from India within a week..."

She further added, "They (Bangladesh) are buying this huge amount of Boeing jets, but who will pay for that? They will have to get an IMF loan to pay for it or something else. Their economy will become weaker if they are going to get into all these debts."

The United States and Bangladesh on Monday signed the United States-Bangladesh Agreement on Reciprocal Trade, marking a significant step in strengthening bilateral economic and trade relations, according to a statement by the Office of the US Trade Representative.

The agreement was signed by US Trade Representative Jamieson Greer and Bangladesh's Adviser for Commerce, Textiles and Jute, and Civil Aviation and Tourism, Sheikh Bashir Uddin. Also present at the signing were Bangladesh Commerce Secretary Mahbubur Rahman and Assistant US Trade Representative Brendan Lynch.

US Trade Representative Jamieson Greer joined Bangladesh's Adviser for Commerce, Textiles and Jute, and Civil Aviation and Tourism Sheikh Bashir Uddin in signing the United States-Bangladesh Agreement on Reciprocal Trade, a statement by the Office of the US Trade Representative said.

"Under President Trump's leadership, the United States is pursuing a trade policy that delivers real results for American workers and businesses, strengthening our economic and security partnerships abroad," the statement quoted Greer as saying.

- ANI

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Reader Comments

P
Priya S
Sikri madam makes a very valid point about the Boeing jets. Taking on massive debt for prestige purchases is never wise. We've seen this story before in other countries. Focus should be on sustainable economic growth, not flashy deals.
R
Rohit P
While I agree we shouldn't panic, we also shouldn't be complacent. The US is actively trying to increase its influence in the region. We need to keep strengthening our own trade ties and make sure 'Made in India' remains the first choice for our neighbors.
S
Sarah B
Interesting analysis. The logistical advantage is key. A week's turnaround from India versus shipping across oceans from the US is a massive difference for any business. Geography still matters in global trade.
V
Vikram M
Good to hear an expert's calm perspective. Media sometimes creates unnecessary tension. Bangladesh is our friend and a key partner. Such deals are normal diplomacy. Our relationship is much deeper than one trade agreement.
K
Karthik V
The point about the IMF loan is crucial. If Bangladesh's economy weakens due to debt, it's not good for regional stability. A strong, stable Bangladesh is in India's interest too. Hope their leadership considers the long-term consequences.

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