CPD taken aback by scope of new US-Bangladesh trade deal

CPD Research Director Golam Moazzem calls on the prime minister to grant outgoing BB governor a "formal farewell"

The Centre for Policy Dialogue (CPD) has expressed “deep shock” over a trade agreement signed between the immediate past interim government and the United States, questioning the legitimacy of a non-elected administration committing the country to long-term obligations.

At a briefing on Saturday outlining recommendations for the new government's first 180 days, CPD Research Director Khondaker Golam Moazzem said the think tank was "astounded and stunned" by the details of the Agreement on Reciprocal Trade (ART).

The deal was inked on Feb 9, just three days before the Muhammad Yunus-led interim administration held the general election.

The BNP formed the government with an absolute majority.

"When tariff discussions began, the public was led to believe the talks were strictly about reducing tariffs, moving from 35 percent to 20 percent through certain procurement agreements," Moazzem said.

"But the final agreement that emerged is staggering. We are flabbergasted."

Terming the deal "discriminatory," Moazzem questioned how an interim government could leave such a burden for an elected one.

He urged the incumbent BNP government to seek an "amicable" renegotiation with Washington to transition toward a bilateral trade pact that better protects national interests.

The briefing also addressed the recent change in leadership at the central bank.

Following the appointment of businessman Mostaqur Rahman as Bangladesh Bank governor by the government, CPD called for a formal and respectful departure for the outgoing central bank chief Ahsan H Mansur.

"I expect the prime minister to invite the former governor to his office and bid him a formal farewell," Moazzem said, noting that Mansur’s reform initiatives in the banking sector were largely successful despite facing institutional resistance.

Moazzem criticised the current appointment process as "opaque" and "weak", suggesting that Bangladesh review the appointment process in light of the one in place in India.

This involves a high-level committee under the finance ministry to shortlist candidates with at least 20 years of experience in the financial sector and relevant academic credentials.

CPD also issued a warning against the new government's reported roadmap to resume domestic coal extraction to tackle the energy crisis.

"Coal extraction will create a major hurdle for energy transition and push renewable energy goals further back," Moazzem warned.

He urged the government to adopt a "no new fossil fuel-based power generation" policy.