US Team’s visit: Economy, trade high on agenda

A high-profile US delegation is arriving in Dhaka today on a two-day visit that will focus on trade and challenges in the economy, including a dollar shortage and money laundering.

This will be the first visit by any US delegation to Dhaka after the formation of the interim government led by Prof Muhammad Yunus, which has undertaken a massive reform process in the state institutions and the economy following the fall of the Awami League government.

The delegation includes Donald Lu, US assistant secretary of state for the Bureau of South and Central Asian Affairs, who will fly to Dhaka from India and join other delegation members.

Brent Neiman, deputy under secretary for International Finance at the US Department of the Treasury, and officials of USAID and the Office of the US Trade Representative will also be in the delegation.

They will tomorrow call on Chief Adviser Prof Yunus, Foreign Adviser Touhid Hossain, and Finance Adviser Saleh Uddin Ahmed, Foreign Secretary Jashim Uddin told reporters at his ministry on Thursday.

He added that the delegation will also hold an official meeting with him over lunch that day.

Officials from the ministries of foreign affairs, finance, commerce, labour, and Bangladesh Bank are also scheduled to be present.

“US and Bangladeshi officials will discuss how the United States can support Bangladesh’s economic growth, financial stability and development needs,” said the US State Department in a statement ahead of the visit.

“The United States is optimistic that, by implementing needed reforms, Bangladesh can address its economic vulnerabilities and build a foundation for continued growth and increased prosperity,” Brent Neiman told The Financial Times on Tuesday.

The delegation is expected to discuss Bangladesh’s fiscal and monetary policy, and the health of its financial system, he said.

Bangladesh’s relations with the US were strained during the AL government. In December 2021, Washington imposed sanctions on the Rapid Action Battalion (Rab) over allegations of extrajudicial killings.

In 2023, the US announced a visa policy for Bangladeshis ahead of the general elections. Following the January 2024 elections, the US declared that the elections were neither free nor participatory.

“The US delegation’s visit after the formation of the interim government only demonstrates how the US gives importance to our relationship,” Foreign Secretary Jashim said on Thursday.

“The discussion will be multidimensional. We are also preparing accordingly. In general, I would say, the government wants a mutual beneficial relationship,” he said without detailing the meeting agenda.

A diplomatic source said withdrawing sanctions on Rab will require time. Meanwhile, Washington can work in supporting reforms in law enforcement, including on accountability, prosecution, and training.

According to foreign ministry officials, Dhaka is expecting Washington to provide funds under the US International Development Finance Corporation (DFC) that provides equity finance. The US has been working on smart grid systems in Bangladesh. This can be an area of financing.

Earlier, Washington said finance under DFC requires improvement of labour condition — something that the current government is working on.

Another official said the US wants an improved investment climate and reforms in the financial management sector, especially in preventing financial fraud. With all these reforms now underway, hopefully, the US will come ahead with more investment, the official said.