Economic diversification key focus at UKBCCI’s Dhaka summit

An important conference of the UK Bangladesh Catalysts of Commerce and Industry (UKBCCI) was held in Dhaka on Tuesday (January 7) at Hotel Sarina in Banani, bringing together businessmen, policymakers, and government officials from both countries to strengthen economic relations.

The conference centered around the proposal for a Free Trade Agreement (FTA) between the UK and Bangladesh. UK MP Rupa Haque emphasized the potential benefits of this agreement, stating that it could create opportunities for cooperation in technology and artificial intelligence beyond the garment sector. She also addressed the global economic challenges posed by the Ukraine-Russia conflict, highlighting its impact on inflation and rising commodity prices in the UK.

Former Commerce Minister and BNP Standing Committee Member Amir Khosru Mahmud Chowdhury underscored the importance of equal opportunities across various industries. He advocated for a liberalized trade environment and the democratization of the economy, questioning why sectors beyond garments had not received similar benefits. Chowdhury also stressed the need for skill development to leverage Bangladesh's demographic dividend and pledged that future diplomatic efforts would prioritize trade.

Representatives from Bangladesh's textile sector, including BGMEA Administrator Md Anwar Hossain, highlighted investment prospects within the industry. Hossain pointed out that Bangladesh imports $11 billion worth of textile products annually, indicating substantial opportunities for domestic investment. He also supported the idea of an FTA with the UK to boost exports, citing Vietnam's success in this area.

The UKBCCI delegation, led by Chairman Iqbal Ahmed, expressed a keen interest in investing in Bangladesh's seafood and agro-industries.

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) urged British-Bangladeshi entrepreneurs to invest in key sectors like energy, technology, education, human resource development, blue economy, and tourism. FBCCI Administrator Md. Hafizur Rahman emphasized the importance of expanding bilateral trade and creating a conducive environment for investment.

The conference underscored a mutual commitment to strengthening economic ties between the UK and Bangladesh. Discussions highlighted the potential for diversification beyond traditional sectors, the importance of equitable opportunities across industries, and the need for policy initiatives like a Free Trade Agreement to facilitate enhanced trade and investment.

The UK Bangladesh Catalysts of Commerce and Industry (UKBCCI), a leading umbrella organization for British-Bangladeshi entrepreneurs in the UK and Bangladesh, is conducting its trade mission to Bangladesh from January 4th to January 9th, 2025. During the mission, the delegation will engage with prominent trade bodies and hold discussions with key advisors to Bangladesh's Interim Government. This initiative aims to foster trade and investment opportunities in Bangladesh's garment and manufacturing sectors while promoting innovation and business growth.

UKBCCI has been instrumental in enhancing bilateral trade between the UK and Bangladesh and has expanded its influence to include business leaders from other nations. The 2025 trade mission will focus on strengthening existing partnerships and exploring new avenues for collaboration, aiming to bolster economic ties between the two nations.

Mr. Showkat Aziz Russell, Regional President of UKBCCI, highlighted the mission's emphasis on Bangladesh's robust ready-made garment (RMG) sector. ‘Bangladesh is globally recognized for its strong manufacturing capabilities and is a key hub for apparel sourcing. This mission seeks to capitalize on the country's edge in global export competitiveness while fostering innovation in design and manufacturing,’ he said.

The textile sector, which contributes over 13% to Bangladesh's GDP, is also a key focus of the delegation. With investments exceeding USD 22 billion, the textile industry accounts for more than 84% of Bangladesh's export earnings and retains over 30% of foreign currency. The mission aims to leverage these strengths and encourage further investment in this critical industry.

Led by the Chairman, President, and Directors of UKBCCI, the delegation comprises both established and emerging investors and entrepreneurs from diverse sectors, including the garment industry, manufacturing, infrastructure, artificial intelligence, Blockchain, ICT, engineering, construction, logistics, banking, and financial services, among others. The mission also emphasizes the transfer of professional skills and knowledge, particularly in emerging sectors like infrastructure development and social sciences, which are witnessing rapid growth in Bangladesh.

Chairman of UKBCCI, Mr Iqbal Ahmed OBE added, ‘Bangladesh has been named as "Country of the Year" having made significant strides in the last 12 months, according to a report published by the globally acclaimed UK-based magazine, The Economist. UKBCCI can take credit for our ongoing commitment to supporting investment in Bangladesh, our recent campaign increased remittances to Bangladesh through proper channels by more than 25%. This remittance can be doubled within a few years if we add value to it through our NRB service industry.’

UKBCCI's trade mission underscores the immense potential of Bangladesh as a destination for investment and collaboration. By fostering relationships and showcasing opportunities, UKBCCI continues to drive economic growth and innovation between the UK and Bangladesh.

Former Commerce Minister and BNP Standing Committee Member Amir Khosru Mahmud Chowdhury, the chief guest at the event, encouraged stakeholders to shift their focus toward exploring new economic opportunities. In his speech, he emphasized the need to move beyond prolonged political discussions and instead concentrate on unlocking the country's potential. He urged for a business environment where foreign investors feel welcomed and assured that they would not face discrimination.

Amir Khosru highlighted the importance of providing equal opportunities across all industries. He argued that the economy needs to be democratized and that trade policies should adopt a more liberal approach. Questioning why only the garment sector has received significant benefits, he stressed the need to extend similar support to at least 20 other promising sectors that remain untapped.

He also underlined the importance of skill development to fully utilize Bangladesh's young and vibrant population. Looking ahead, Amir Khosru promised a shift in focus toward trade diplomacy if his party comes to power. He outlined a vision where diplomatic missions would prioritize reporting on trade advancements and fostering productive engagement with the expatriate community to drive economic growth.

Anwar Hossain also called for a Bangladesh-UK FTA to enhance exports, citing Vietnam as an example.

BKMEA President Mohammad Hatem criticized foreign buyers for unfair practices and suggested postponing Bangladesh's LDC graduation. ‘The LDC graduation should be postponed by three years, because businesses are being harmed in various ways,’ he said.

The event was organized by the Bangladesh Textile Mills Association (BTMA) in collaboration with the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). UKBCCI Chairman Iqbal Ahmed and President MG Moula Miah were also present.

The meeting showcased the potential for strengthening UK-Bangladesh trade ties through diversification, investment, and policy initiatives.