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PRESS RELEASE
U.S. Bangladesh Advisory Council (USBAC)
Contact: press@usbac.org
USBAC Hosts Congressional Briefing on Trade with the Muslim World
February 25, 2009 - WASHINGTON, DC: The U.S. Bangladesh Advisory Council today held a
Congressional briefing titled “The New US “Smart Power”: Trade with the Muslim World.” The briefing
was hosted in conjunction with Congressman Joseph Crowley, chair of the Congressional
Bangladesh Caucus. Speakers included Congressman Joseph Crowley (D-NY), Edward Gresser,
Director of the Trade and Global Markets Project at the Progressive Policy Institute, Kimberly Elliott,
Senior Fellow at the Center for Global Development and USBAC Executive Director, Shamarukh
Mohiuddin.
The event was attended by several Congressional staffers, officials from the Department of State,
Department of Homeland Security, Department of Commerce, NGOs including Oxfam America,
GlobalWorks Foundation, companies including Levi Strauss and Wal Mart, World Bank officials, and
others. The event was covered by Voice of America and Washington Trade Daily.
The speakers stated that current U.S. trade policy is tilted against the Muslim world. They called on
Congress and the administration to grant better U.S. market access for products from Muslim
countries as part of an international economic diplomacy effort. The term “smart power” has been
used by Secretary Hillary Clinton to describe the new path for U.S. foreign policy that will emphasize
economic diplomacy. All the speakers agreed that if U.S. trade policy is used to expand economic
opportunities in the Muslim world, the idea of “smart power” would be translated into concrete terms.
Mr. Ed Gresser, who previously held senior policy positions at USTR and in the office of Senator Max
Baucus (D-MT), pointed out the need for a new U.S. foreign policy towards Muslim countries since
past efforts focused on military action and sanctions have had little success. Mr. Gresser’s research
has shown that the U.S. tariff system unfairly penalizes Muslim countries. According to his
calculations, Bangladesh itself faces tariffs in the amount of $523 million on just $3.4 billion in
exports whereas France faces only $378 million on $41.2 billion worth of exports. Mr. Gresser
emphasized the need for immediate reforms in trade policy, especially given that the economic crisis
has caused exports from Muslim countries to decline sharply in recent months. He also said that
“among Democrats in Congress there is a fair amount of support for trade preferences programs
(which reduce these tariffs) and if the Administration describes trade as an important part of foreign
policy towards the Muslim world, there will be much more support for reform.” He also added that the
U.S. strategy of relying on tariff protection to save domestic jobs has been “a big failure” since
apparel production in the United States has only been going down.
Ms. Kim Elliott said that while the U.S. market is generally open, U.S. trade policy unintentionally
discriminates against labor intensive products such as clothing, textiles, footwear, which are
produced primarily by the poorest countries. She said “some of these countries are also large,
strategic Muslim countries, such as Bangladesh, Indonesia, and Pakistan.” Ms. Elliott also proposed
that the U.S. extend 100 percent duty free quota free market access to the poorest 50 countries, as
well as those countries which are just a little over the Least Developed Country (LDC) threshold. She
pointed out at 45 percent of the people in Bangladesh still live below the poverty line, while two thirds
of them work in agriculture. Apparel, which is about 80 percent of Bangladesh’s exports, provides “a
path out of subsistence agriculture” which is “the bottom of the barrel in many developing countries.”
She pointed out that while the apparel sector in Bangladesh has been plagued with compliance
issues “it offers jobs that people voluntarily take because of a lack of alternatives.”
Ms. Shamarukh Mohiuddin stated that “the new U.S. foreign policy towards the Muslim world should
include economic diplomacy efforts including trade as well as aid.” She pointed to several looming
economic challenges in Bangladesh including the removal of apparel quotas on China, predictions
of a sharp decline in remittances, the impact of climate change, and stressed the need for economic
development through duty free access to the U.S. market for Bangladeshi products and trade capacity
building. She pointed out that the amount of tariffs collected from Bangladesh is five times the
amount of development aid to Bangladesh. Ms. Mohiuddin also stated that the United States should
reward moderate Muslim democracies such as Bangladesh, which recently held fair and peaceful
elections, through providing trade and aid benefits. She talked about the benefits that trade has
brought for the poor in Bangladesh, especially for women. She recognized that the U.S. should
provide similar benefits to other countries in the Muslim world, including Afghanistan, Pakistan,
Turkey, Lebanon which also face unfair tariff penalties. She also spoke about the need for more
political will and better capacity building efforts by the U.S. and Bangladesh governments to help
workers in Bangladesh protect their rights.
Congressman Joseph Crowley (D-NY) said that he would “take the recommendation of the 9/11
Commission further to not only engage with the Middle East, but also with the “broader Muslim
World.” He said “there is a need for us to create stronger links between Bangladesh and the United
States through soft power and trade. The relationship with the democracy needs to be nurtured and
one of the ways to do that is through duty free access for textiles into the United States. He said
“however Bangladesh also needs to diversify its economy.” Congressman Crowley said that in the
post-election period the United States should look for ways to help Bangladesh with its progress
forward, including with diversification of industries. He said: “Bangladesh’s over-reliance on textiles
and apparel has created potential civil difficulties. We have seen the ability of diversification within
Bangladesh through micro-lending, where women have been engaged in many activities beyond
textiles. Diversification must be a part of Bangladesh’s future.” He added that Congress is waiting to
see what the Obama Administration will do on trade, but if there is a bill focused on trade and
development, “there is no question that Bangladesh would be included.” He noted that Bangladesh
hasn’t received much political and economic attention from the United States compared to Pakistan
and Afghanistan since it has been relatively peaceful, however the U.S. sees Bangladesh as “the
leader of the moderate Muslim world” and for that reason alone, U.S. policymakers should visit
Bangladesh more often and ensure its development. He noted that through his personal relationship
with Secretary Hillary Clinton through New York politics he “could have a real discussion with her on
Bangladesh.”
#END#
U.S. Bangladesh Advisory Council (USBAC)
Contact: press@usbac.org
USBAC Hosts Congressional Briefing on Trade with the Muslim World
February 25, 2009 - WASHINGTON, DC: The U.S. Bangladesh Advisory Council today held a
Congressional briefing titled “The New US “Smart Power”: Trade with the Muslim World.” The briefing
was hosted in conjunction with Congressman Joseph Crowley, chair of the Congressional
Bangladesh Caucus. Speakers included Congressman Joseph Crowley (D-NY), Edward Gresser,
Director of the Trade and Global Markets Project at the Progressive Policy Institute, Kimberly Elliott,
Senior Fellow at the Center for Global Development and USBAC Executive Director, Shamarukh
Mohiuddin.
The event was attended by several Congressional staffers, officials from the Department of State,
Department of Homeland Security, Department of Commerce, NGOs including Oxfam America,
GlobalWorks Foundation, companies including Levi Strauss and Wal Mart, World Bank officials, and
others. The event was covered by Voice of America and Washington Trade Daily.
The speakers stated that current U.S. trade policy is tilted against the Muslim world. They called on
Congress and the administration to grant better U.S. market access for products from Muslim
countries as part of an international economic diplomacy effort. The term “smart power” has been
used by Secretary Hillary Clinton to describe the new path for U.S. foreign policy that will emphasize
economic diplomacy. All the speakers agreed that if U.S. trade policy is used to expand economic
opportunities in the Muslim world, the idea of “smart power” would be translated into concrete terms.
Mr. Ed Gresser, who previously held senior policy positions at USTR and in the office of Senator Max
Baucus (D-MT), pointed out the need for a new U.S. foreign policy towards Muslim countries since
past efforts focused on military action and sanctions have had little success. Mr. Gresser’s research
has shown that the U.S. tariff system unfairly penalizes Muslim countries. According to his
calculations, Bangladesh itself faces tariffs in the amount of $523 million on just $3.4 billion in
exports whereas France faces only $378 million on $41.2 billion worth of exports. Mr. Gresser
emphasized the need for immediate reforms in trade policy, especially given that the economic crisis
has caused exports from Muslim countries to decline sharply in recent months. He also said that
“among Democrats in Congress there is a fair amount of support for trade preferences programs
(which reduce these tariffs) and if the Administration describes trade as an important part of foreign
policy towards the Muslim world, there will be much more support for reform.” He also added that the
U.S. strategy of relying on tariff protection to save domestic jobs has been “a big failure” since
apparel production in the United States has only been going down.
Ms. Kim Elliott said that while the U.S. market is generally open, U.S. trade policy unintentionally
discriminates against labor intensive products such as clothing, textiles, footwear, which are
produced primarily by the poorest countries. She said “some of these countries are also large,
strategic Muslim countries, such as Bangladesh, Indonesia, and Pakistan.” Ms. Elliott also proposed
that the U.S. extend 100 percent duty free quota free market access to the poorest 50 countries, as
well as those countries which are just a little over the Least Developed Country (LDC) threshold. She
pointed out at 45 percent of the people in Bangladesh still live below the poverty line, while two thirds
of them work in agriculture. Apparel, which is about 80 percent of Bangladesh’s exports, provides “a
path out of subsistence agriculture” which is “the bottom of the barrel in many developing countries.”
She pointed out that while the apparel sector in Bangladesh has been plagued with compliance
issues “it offers jobs that people voluntarily take because of a lack of alternatives.”
Ms. Shamarukh Mohiuddin stated that “the new U.S. foreign policy towards the Muslim world should
include economic diplomacy efforts including trade as well as aid.” She pointed to several looming
economic challenges in Bangladesh including the removal of apparel quotas on China, predictions
of a sharp decline in remittances, the impact of climate change, and stressed the need for economic
development through duty free access to the U.S. market for Bangladeshi products and trade capacity
building. She pointed out that the amount of tariffs collected from Bangladesh is five times the
amount of development aid to Bangladesh. Ms. Mohiuddin also stated that the United States should
reward moderate Muslim democracies such as Bangladesh, which recently held fair and peaceful
elections, through providing trade and aid benefits. She talked about the benefits that trade has
brought for the poor in Bangladesh, especially for women. She recognized that the U.S. should
provide similar benefits to other countries in the Muslim world, including Afghanistan, Pakistan,
Turkey, Lebanon which also face unfair tariff penalties. She also spoke about the need for more
political will and better capacity building efforts by the U.S. and Bangladesh governments to help
workers in Bangladesh protect their rights.
Congressman Joseph Crowley (D-NY) said that he would “take the recommendation of the 9/11
Commission further to not only engage with the Middle East, but also with the “broader Muslim
World.” He said “there is a need for us to create stronger links between Bangladesh and the United
States through soft power and trade. The relationship with the democracy needs to be nurtured and
one of the ways to do that is through duty free access for textiles into the United States. He said
“however Bangladesh also needs to diversify its economy.” Congressman Crowley said that in the
post-election period the United States should look for ways to help Bangladesh with its progress
forward, including with diversification of industries. He said: “Bangladesh’s over-reliance on textiles
and apparel has created potential civil difficulties. We have seen the ability of diversification within
Bangladesh through micro-lending, where women have been engaged in many activities beyond
textiles. Diversification must be a part of Bangladesh’s future.” He added that Congress is waiting to
see what the Obama Administration will do on trade, but if there is a bill focused on trade and
development, “there is no question that Bangladesh would be included.” He noted that Bangladesh
hasn’t received much political and economic attention from the United States compared to Pakistan
and Afghanistan since it has been relatively peaceful, however the U.S. sees Bangladesh as “the
leader of the moderate Muslim world” and for that reason alone, U.S. policymakers should visit
Bangladesh more often and ensure its development. He noted that through his personal relationship
with Secretary Hillary Clinton through New York politics he “could have a real discussion with her on
Bangladesh.”
#END#
