US delegation including Donald Lu to visit Dhaka, focus on economic assistance

The US is focusing on strengthening financial and economic cooperation with Bangladesh following the changed political situation, and a high-level delegation from the country will be visiting Dhaka in mid-September to discuss these issues, according to diplomatic sources at Dhaka and Washington.

Sources said Brent Neiman, deputy under secretary for international finance at the US Department of Treasury, will also be in the delegation.

During their Dhaka visit, the delegation will present the issues of US’ preferences to maintain the bilateral relations. It also will try to learn and understand the expectations and demands of Bangladesh. Then the delegation will return to Washington and finalise on how Bangladesh can be provided with assistance at the policy level.

Speaking about the visit, foreign affairs adviser to the interim government Md. Touhid Hossain told Prothom Alo a high delegation of the US is scheduled to visit Bangladesh this month and it is the first visit of any US delegation since the interim government was sworn-in.

That is why, it is normal that talks will be held on how the bilateral relations can be strengthened in future, he stated.

Earlier in August, a top UN delegation from Geneva visited Dhaka to discuss the modalities of an investigation into the violence centering the student-people movement, as well as the involvement of the UN in the democratic reform of Bangladesh.

Last year, the US imposed visa restrictions in a bid to ensure a free and fair election in Bangladesh, creating tension between Dhaka and Washington. The Sheikh Hasina government came to power through a one-sided election on 7 January.

Both sides, however, were keen to improve bilateral relations despite their disagreements on democracy and human rights, for this, the Biden administration hinted at strengthening the ties by sending a high-level delegation to Dhaka in February this year.

But a student-people movement toppled the Sheikh Hasina government in just eight months after she had come to power for the fourth consecutive term.

It has been learned after contacting Dhaka and Washington that, like in February, the US delegation will also consist of representatives from the US National Security Council, State Department, Treasury and international donor agencies.

Lindsey W Ford, deputy assistant secretary of Defense for South and Southeast Asia, and Donald Lu, assistant secretary Bureau of South and Central Asian Affairs, will be in the delegation.

This will be Donald Lu’s second visit to Dhaka this year. He first visited Bangladesh in May this year.

Sources said the US delegation is scheduled to hold meetings with chief adviser to the interim government Dr. Muhammad Yunus, finance adviser Salehuddin Ahmed and foreign affairs adviser Touhid Hossain. 

Officials of the Bangladesh mission discussed the matter with the US officials at the State Department in Washington last week.

Besides, the US delegation may exchange views with leaders of the student-people movement, political parties and civil society representatives in Dhaka.

Diplomatic analysts said various issues related to bilateral ties might come up during the visit of the US delegation despite giving focus on economic and financial assistance. Usually, Washington will be soft as they extended support to Dr. Yunus-led interim government. However, various issues including improvement of an investment-friendly atmosphere, return of profits of several top US companies and payment of dues may come up in the case of financial assistance.

On the other hand, Bangladesh has the opportunity to raise the issue of US cooperation in repatriating the laundered money in a bid to tackle the persisting economic crisis.

Labour rights in Bangladesh have been an important issue in bilateral relations for several years. Amendment to the labour law progressed, but the overall situation still lacks some improvement.

The US made 11 recommendations to improve the situation. Since the qualitative change of situation did not happen during the tenures of Awami League government, the US stressed labour situation improvement for investment and financial assistance.

Replying to a query on how the labour rights issues might come up during the visit of the US delegation after the change of police situation in Bangladesh, a senior official said the US always puts the labour situation on its list of preferences when it comes to economic and trade cooperation. This is also one of their major prerequisites for financial assistance and investment. However, the issue is highly unlikely to come as a pressure on the interim government.

Talks have been underway over Bangladesh receiving assistance from the US International Development Finance Corporation (DFC) for several years, and the US delegation may bring the labour rights issue to receive cooperation from agencies like DFC.

The foreign policy of the US, especially when Democrats hold office, emphasises democratic values. So, it is normal to come up with democracy, good governance and human rights issues during the talks with US delegations.

Diplomatic experts, however, remarked that the US would not stress this issue to the interim government amid the changed situation.

Bangladesh had faced criticism from the international arena over enforced disappearance and extrajudicial killings for over a decade.

The interim government has already signed the International Convention for the Protection of All Persons from Enforced Disappearance and formed an independent commission to try the incidents of enforced disappearances.

In this context, Bangladesh may receive US assistance in improving the human rights situation and democratic reform.

According to diplomatic sources, the interim government has started talks on initiating the reform process in the country in cooperation with the UN.

They further said talks might be held on the scope of the US cooperation in the reform process to the priority sectors of the interim government.

Speaking about this, former ambassador and research organisation Bangladesh Enterprise Institute (BEI) president M. Humayun Kabir told Prothom Alo, “I believe the US delegation would prioritise financial and economic cooperation. Our economy is in a complex stage and we need assistance on an emergency basis. Now the US wants to assist Bangladesh with their DFC, and that requires improvement of the labour situation. Besides, there is also the issue of investment from the US. As a result, these issues will undoubtedly dominate the US delegation visit.”

* This report appeared in the print and online editions of Prothom Alo and has been rewritten in English by Hasanul Banna