The United States is ready to help implement reforms

US delegation meets with Yunus, talks on reforms, money laundering, labor rights, Rohingya issue

DIPLOMATIC CORRESPONDENT

Mon 16 Sep 2024 12:00 AM Last update: Mon 16 Sep 2024 03:34 AM

The US delegation, led by Brent Neiman, Deputy Under Secretary for International Finance at the US Treasury Department, met yesterday with Senior Advisor Prof. Muhammad Yunus at the state-owned Jamuna Guest House. Second from left, Donald Lu, US Assistant Secretary of State for the Bureau of South and Central Asian Affairs, was present. Photo: PID

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The US delegation, led by Brent Neiman, Deputy Under Secretary for International Finance at the US Treasury Department, met yesterday with Senior Advisor Prof. Muhammad Yunus at the state-owned Jamuna Guest House. Second from left, Donald Lu, US Assistant Secretary of State for the Bureau of South and Central Asian Affairs, was present. Photo: PID

The United States has expressed its willingness to cooperate with the interim government, which has asked for support in rebuilding the country, carrying out reforms and returning money laundered by corrupt individuals.

Chief Advisor Prof. Muhammad Yunus appealed for help when the US delegation met him at the government-owned Jamuna Guest House.

The delegation, led by U.S. Treasury Deputy Secretary Brent Nieman, praised Prof. Yunus’ leadership and said Washington would be eager to support his reform agenda.

U.S. officials said they were ready to provide technical and financial assistance.

Yesterday, the two countries signed an agreement under which the United States will provide Bangladesh with $200 million in development support.

“Our delegation met with Chief Advisor Professor Muhammad Yunus, reaffirming our commitment to supporting inclusive economic growth, institution-building and development for the benefit of the people of Bangladesh,” the US embassy said on its Facebook page.

“As Bangladesh strives to create a more equitable and inclusive future, the United States stands ready to support these efforts.”

This is the first visit of the American delegation after the formation of the interim government.

Officials concerned said the visit marked a new beginning for the relationship as US-Bangladesh relations were strained during the Awami League government.

Over the past few years, the United States has imposed sanctions on Rab and implemented a policy under which Bangladeshis who undermine democracy were denied U.S. visas.

The delegation included Donald Lu, U.S. Assistant Secretary of State for South Asia, Brendan Lynch, U.S. Deputy Trade Representative, Anjali Kaur, Deputy Assistant Administrator, and Jerrod Mason, Director of the U.S. Treasury.

The delegation met with business leaders on Saturday.

Yesterday they called on Yunus, Foreign Adviser Touhid Hossain, Financial Adviser Salehuddin Ahmed and Bangladesh Bank Governor Ahsan H. Mansur.

A meeting was also held with Foreign Minister Jashim Uddin at the state-owned Padma guest house, which was attended by secretaries of the Economic Relations Department, ministries of commerce, labour, home affairs, representatives of the Bangladesh Bank and the NBR chairman.

According to a statement from the Office of the Chief Counsel, Yunus said during the meeting that his administration had moved quickly to “reset, reform and restart” the economy, initiate financial sector reforms and repair institutions.

He added that six commissions have been established to prevent electoral fraud, reform the judiciary, police, civil administration, anti-corruption agency and amend the constitution.

Prof. Yunus said the government was determined to recover stolen assets stolen by corrupt individuals. “We were in an ocean of corruption,” he said.

Professor Yunus said the student-led revolution had ushered in a new era of hope for Bangladesh. “It’s a very important time for us and a significant moment in our history.”

The hour-long meeting discussed financial and economic reforms, investments, labour issues and the Rohingya crisis.

Prof. Yunus presented the US delegation with a book on graffiti in Bangladesh. The book contains photos of some of the best works done during the student uprising in July-August on the walls of Dhaka and other cities and towns.

FINANCIAL AND INCOME SECTOR REFORMS

After the meeting, Foreign Minister Jashim Uddin told the media that the US delegation had given priority to financial and tax sector reforms during the discussions.

He added that Dhaka would seek help from experts from the United States as the Bangladesh Bank discussed specific measures to recover the laundered money.

The two sides also discussed trade facilitation, the GSP program and the American Corporation for International Development.

“We informed them about the reforms introduced in the labor sector. They took note and appreciated the progress made. They will continue the discussion on labor reforms.”

The United States suspended construction of the GSP facility following the Rana Plaza building collapse in 2013.

It did not award funding under the DFC instrument, which aims to improve working conditions.

However, there was no specific discussion yesterday on the financing of GSP and DFC.

Asked about the withdrawal of sanctions on Rab, Jashim said the delegation had been informed about the reforms in Rab and that Dhaka would continue discussions on the issue.

The American side raised the issue of recent events in Myanmar and humanitarian aid for the Rohingyas in Bangladesh.

In the past few months, about 15,000 Rohingyas have arrived in Bangladesh, raising new concerns in Dhaka.

“We talked about addressing the root causes of the Rohingya crisis…” he said.

Professor Yunus will attend the five-day session of the UN General Assembly starting on 22 September.

Asked if there will be any bilateral meeting between US President Joe Biden and Prof Yunus, Jashim said if the schedule changes, such a meeting can take place.

He added that they presented reform plans and discussed how the United States could assist in the process.

“The American side came up with this idea and ultimately the two countries will develop cooperation at various stages.”

The United States is the largest foreign direct investor (FDI) in Bangladesh and the largest recipient of exports to the country.

In 2022-23, US FDI in Bangladesh stood at $261 million. Last year, Bangladesh’s exports to the US were $7.72 billion, while imports were worth $2.04 billion.

Analysts say the United States can support Bangladesh in various ways, including providing export privileges to the U.S. market, financing reforms and investing in Bangladesh.

MEETING WITH THE GOVERNOR OF BB

Bangladesh Bank Governor Ahsan H. Mansur asked the US for financial support for ongoing banking sector reforms when a delegation met him at the central bank.

During the meeting, the U.S. team discussed macroeconomic issues, including inflation and GDP growth, money laundering, bad loans and reforms.

Bangladesh Bank spokesman Husne Ara Shikha shared details of the meeting in a telephone conversation with The Daily Star.

Shikha said the US team wanted to know about the challenges in banking sector reform. The governor replied that there were no challenges unless an undesirable political issue arises in the future.