total final - History Although the U.S. relationship with...

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History Although the U.S. relationship with Bangladesh was initially troubled because of strong U.S. ties with Pakistan, U.S.-Bangladesh friendship and support developed quickly following Bangladesh’s independence from Pakistan in 1971. U.S.-Bangladesh relations are excellent. These relations were boosted in March 2000 when President Clinton visited Bangladesh, the first-ever visit by a sitting U.S. President, when Secretary of State Colin Powell visited in June 2003, as well as when Secretary of Defense Donald Rumsfeld visited in June 2004. A centerpiece of the bilateral relationship is a large U.S. aid program, totaling about $163 million for 2009. U.S. economic and food aid programs, which began as emergency relief following the 1971 war for independence, now concentrate on long- term development. U.S. assistance objectives include stabilizing population growth, protecting human health, encouraging broad-based economic growth, and building democracy. In total, the United States has provided more than $5.5 billion in food and development assistance to Bangladesh. Food aid under Titles I, II, and III of PL-480 (congressional "food-for-peace" legislation) has been designed to help Bangladesh meet minimum food requirements, promote food production, and moderate fluctuation in consumer prices. Other U.S. development assistance emphasizes family planning and health, agricultural development, and rural employment. The United States works with other donors and the Bangladesh Government to avoid duplication and ensure that resources are used to maximum benefit. Since 1986, with the exception of 1988-89, when an aircraft purchase made the trade balance even, the U.S. trade balance with Bangladesh has been negative, due largely to growing imports of ready-made garments. Jute carpet backing is the other major U.S. import from Bangladesh. A bilateral investment treaty was signed in 1989. Another trade related issue between the two countries involves the export processing zones (EPZs). The government provides several tax, foreign exchange, customs and labor incentives to investors in the EPZs. One such incentive provided in recent years was an exemption from certain labor laws, which had the practical effect of prohibiting trade unions from the zones. The U.S. Generalized System of Preferences (GSP) law requires the beneficiary country to satisfy certain conditions relating to labor rights. On July 13, 2004, the government passed a bill 1 | P a g e
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allowing limited trade unionism in the EPZs effective November 1, 2006. Implementation of the law has been slow, however, and a U.S. labor organization has filed a petition with the U.S. Government to suspend Bangladesh's GSP privileges in the absence of progress on labor rights issues. Relations between Bangladesh and the United States were further strengthened by the
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This note was uploaded on 06/29/2011 for the course BBA 202 taught by Professor Svd during the Spring '11 term at Ahsanullah University of Sci & Tech.

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total final - History Although the U.S. relationship with...

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