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Bangladesh-UK Bilateral Relations : An Ever-Growing Friendship

Political ties Trade & Investment Partnership in Development Partnership in Defence & Security British Bangladeshi Expatriates

Political

Bangladesh and the UK have historic and traditional friendly ties that predate 1971. Regular contact between Bengal and Great Britain began in the 17th Century. In many ways, relations with Bengal-one of the most prosperous regions on earth at the time- were economically and politically important to Britain in the immediate aftermath of the preliminary phase of the Great Industrial Revolution. The relations also proved to be important to the region that constitutes today’s Bangladesh as it offered the population an opening to the West’s modern education, technology and ideas.

Support of the British people, government and the media during Bangladesh’s War of Liberation in 1971 forged the relations further and took it to a new height. The UK was among the first of the European countries to recognize Bangladesh on February 4, 1972. This greatly influenced quick recognition of Bangladesh by other Commonwealth and Western countries. Bangladesh became a member of the Commonwealth on 18 April 1972.

Bangladesh attaches great importance to the historic links binding the two important Commonwealth countries. Relations between Bangladesh and the UK are defined by their shared aspirations for democracy, development and human rights. A vibrant trade and economic partnership and the presence of a large Bangladeshi Diaspora in the United Kingdom (numbering about half a million) provide huge impetus to the burgeoning relations. The two countries have been maintaining excellent bilateral relations in all areas of mutual interest.

The two countries work closely in various international forums on a range of issues including MDGs, climate change, human rights and UN peacekeeping as well as on issues related to the LDCs. Bangladesh is the second largest recipient of British overseas development assistance after India. The depth of the Bangladesh-UK relations is also manifested in the number of bilateral visits that have so far taken place between the two countries at various levels including Heads of State. The frequent high-level contacts of recent years have come to characterise the forward looking, diverse and multifaceted relations. Starting from a level of mere aid centricity the two countries today look at the relations as a ‘new special partnership’ forged on ‘shared agenda’.

Hon’ble Prime Minister of Bangladesh Sheikh Hasina paid an official visit to the United Kingdom on 26-30 January 2011. During the visit Hon'ble Prime Minister had bilateral talks with the British Prime Minister Rt. Hon David Cameron MP on 27 January 2011. During the meeting the Hon'ble Prime Minister discussed the entire gamut of issues of bilateral interests with her British counter parts. This was the first meeting between the two heads of Government since new governments assumed offices in both the countries. This visit contributed significantly in further enhancing bilateral cooperation. 

Her Royal Highness The Princess Royal, Princess Anne, visited Bangladesh in  March 2011. This was her fourth visit to Bangladesh. During the course of her visit, Princess Anne met the Hon’ble President, Hon’ble Prime Minister, and the members of civil society.

In Bangladesh, the contribution of the British Council in cultural exchange, teaching and English language learning has enhanced these personal contacts.  Every year,  thousands of Bangladeshis also come to the UK to visit family, to study, travel and conduct business.

 

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Trade

Trade, investment and broader economic relations between the two countries have expanded in depth and dimension over the years. The UK is the 3rd single largest destination for Bangladesh’s exports, after the United States and Germany. Over the years Bangladesh’s exports to the UK enjoys a steady annual growth.   Total Bangladesh export to the UK in 2010-11 was US$ 2.001 billion,    33% higher than the previous year.

UK-Bangladesh trade statistics are encouraging in terms of volume and growth. This may be attributed to, inter alia, competitive edge in quality and price; duty free access under EBA (Everything But Arms) scheme; enhanced compliance (specially in the RMG sector) with standards; strong backward linkage in knitwear and the High Commission’s regular initiatives.

Export items from Bangladesh to the UK also include knitwear, woven garments, shrimps, home textile, bi-cycle, light engineering products, vegetables, frozen fish, ceramic tableware, and jute yarn and jute goods. Import items from the UK include power-generating and industrial machinery and equipments, professional and scientific equipments, textile fibers, medicinal and pharmaceutical products, dyeing, tanning and colouring materials, electrical machinery and appliances and chemical materials and products.

A focused, sustained effort is needed to project the fact that Bangladesh has many more products to offer besides the traditional items that the UK presently imports from it. The UK may add to its import basket from Bangladesh, for example, ceramics, pharmaceuticals and computer software, as well as medium and small sized ships, an emerging manufacturing product of Bangladesh. Some European countries including Denmark, Germany and the Netherlands are currently procuring sea-worthy vessels from Bangladesh.

UK Bangladesh Trade Statistics

(In million US $)

Year
Export to UK
Import from UK
Balance
1997-1998
440.19
178.39
(+) 261.80
1998-1999
491.34
151.88
(+) 339.46
1999-2000
500.05
225.67
(+) 274.02
2000-2001
594.38
222.81
(+) 372.02
2001-2002
648.24
173.61
(+) 474.63
2002-2003
777.05
169.00
(+) 604.05
2003-2004
898.21
216.38
(+) 681.83
2004-2005
944.18
285.91
(+) 658.27
2005-2006
1048.62
325.42
(+) 723.20
2006-2007
1173.95
250.00
(+) 923.95
2007-2008
1374.03
170.00
(+) 1204.03

2008-2009

        1502.00       
     2009-2010 1508.00      
     2010-2011 2001.00    

software, as well as medium and small sized ships, an emerging manufacturing product of Bangladesh. Some European countries including Denmark, Germany and the Netherlands are currently procuring sea-worthy vessels from Bangladesh.

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Investment

UK has emerged as one of the biggest sources of FDI for Bangladesh. British investment registered in Bangladesh in 2010 was to the tune of USD 105.6 million, elevating UK to the second top position among countries investing in Bangladesh. Major areas of British investment in Bangladesh include Energy, Power generation, oil and gas, tea garden, financial and other service sectors.

Some of the major British concerns present in Bangladesh include Aventis, Berger Paints, BOC Bangladesh, British American Tobacco, Cairn Energy, Duncan Brothers, GEC, GlaxoSmithKline, GCM Energy, HSBC, James Finlay, Meghna Energy, P&O Nedlloyd, Price Waterhouse Coopers, Reckitt Benckiser, Standard Chartered, Tetley, ACI, Tullow Bangladesh, Unilever and World-Tel.

Full potential of British investment in Bangladesh is yet to be exploited. It needs to be indicated that Bangladesh is now widely billed as one of the most attractive investment destinations in the region. The country has liberalized its economy to an extent that has surpassed many of its neighbours. She offers attractive incentives to foreign investors including foreign ownership without limit, legal protection to investors against nationalization and expropriation, generous tax holidays and unrestricted repatriation of capital and profits. Bangladesh is also home to the most inexpensive, productive and easily trainable labour force. Besides, Bangladesh’s geographical location with well-established connectivity to the region, makes it a strategic location for foreign investors.

Bangladesh’s standing now is among the first 60 economies of the world. The Euro-Monitor International has placed Bangladesh among the next 11 emerging economies; Goldman Sachs have included us in their list of "Next Eleven"; J.P. Morgan, in their "Frontier Five"; and Standard & Poor (S&P) and Moody's have placed Bangladesh ahead of all South Asian nations, except India. Even Japanese economic observers have praised our sound fiscal and monetary management. We hope the investors will be encouraged to take advantage of the prevailing investment opportunities in Bangladesh.

 

Remittances:

            United Kingdom has been one of the top sources of remittance. At present, UK is then 5th largest source of remittance. Actual flow of remittance from UK in the period 2009-2011 are as follow:

            2008-09                       US$ 788 million

            2009-2010                 US$  827 million

            2010-2011                   US$  890 million

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Economic Cooperation

For Bangladesh, the UK has, of late, emerged as the largest bilateral development partner and for the UK, Bangladesh is the second largest recipient of development assistance, next only to India. UK’s development programme has been a core area of international cooperation for Bangladesh and they are growing consistently in size and diversity. Total UK assistance to Bangladesh since independence has been around £3 billion. Good development performance has been an inspiring factor for the UK to continually increase its country ODA to Bangladesh through the Department for International Development (DFID).

In 2009, UK development commitment was $216m which increased to around $ 250 for 2010. Lately, the Department for International Development (DFID) announced that it would spend £1 billion ( equivalent to $1.66 billion)  in Bangladesh for the period 2011-2015.  It has committed to spend an average of £250 million ( equivalent to $ 415 million)  per year for the period 2011-2015. It is worthwhile to note that despite the global financial melt-down and world-wide reduction in aid flow, UK development assistance has increased significantly.

Good development performance has been an inspiring factor for the UK to continually increase its country ODA to Bangladesh. Over the past  years, the UK’s development assistance was aimed at poverty alleviation, rural infrastructure development, primary education, health, nutrition, population, sanitation, safe drinking water, urban development, support to private sector infrastructure building and institutional reform. The current policy orientation of DFID’s development assistance programme goes well with the present priorities of Bangladesh for her socio-economic development.

Bangladesh will remain in the group of twenty-seven countries where Britain will in future have bilateral aid programmes.

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Climate Change Cooperation

Climate Change cooperation has been an important element in the relationship between Bangladesh and the UK bilaterally as well as at international level. Bangladesh is particularly vulnerable to climate change given that it is a low-lying delta in one of the highest rainfall areas of the world.

The UK Government is a strong advocate for an environment-friendly global climate change regime. The British Foreign Secretary during his visit to Bangladesh in February 2008 showed deep understanding of the problem that Bangladesh was faced with due to climate change for which Bangladesh was hardly responsible. The British Foreign Secretary agreed to enhance cooperation with Bangladesh in this field.

Bangladesh supported a UK initiated debate at the UN Security Council on ‘Climate Change and Security’ in April 2007. Bangladesh deeply appreciates leadership displayed by Prime Minister Gordon Brown at global level on climate change issues and his interest to support the African and Asian LDCs in combating adverse impacts of climate change.

Bangladesh and the UK jointly organised the London Climate Change Conference held on 10 September 2008. The Conference was organized primarily to highlight Bangladesh’s strategic plans to mitigate climate change affects as well as to help bolster its adaptation programmes. The London Conference also established a Multi-Donor Trust Fund for Bangladesh. The UK pledged £75 million ( over five years) to support Bangladesh in adaptation programme in the face of adverse impacts of climate change .  The bulk of our funding will go towards the Bangladesh Climate Change Resilience Fund, which was signed between the Government of Bangladesh and other international donors. This will go some way towards protecting the lives and livelihoods of some 15 million people who live in the most vulnerable places of Bangladesh.

Bangladesh has been campaigning for renewed efforts to promote ‘carbon-neutral’ economic growth and for setting up a Technology Transfer Board as part of the next agreement on climate change. Bangladesh feels that the LDCs would not be able to attain sustainable development without access to affordable, eco-friendly technologies.

DFID has been supporting the Government of Bangladesh for devising a comprehensive strategy and project plan for shorter and longerterm adaptation. It earlier  announced a commitment of additional fund under the Comprehensive Disaster Management Programme to help build Bangladesh’s capacity in enhancing disaster preparedness, including building cyclone shelters and other infrastructures.

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Counter-Terrorism Cooperation

The UK has also been a direct victim of terrorist attack during London bombings in 7/7. Bangladesh and the UK enjoy close cooperation in this particular area. Both the Governments are working together to foster best possible cooperation in counter-terrorism measures. 

UK-Bangladesh Joint Working Group (JWG) on counter-terrorism:

The first meeting of the Bangladesh - UK Joint Working Group (JWG) on Counter Terrorism (CT) was held in  Dhaka on 28 June 2009. The concept of Joint Working Group is that of an “informal method of engagement” to facilitate dialogue between the two governments across agreed standards. The purpose of JWG is to identifying current areas of counter-terrorism cooperation and ways to enhance them, identifying new areas of CT engagement and sharing of views and experiences on best practice.

The extent of Counter-terrorism cooperation includes training and information sharing.

 

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British-Bangladeshi Diaspora in the UK

It is estimated that about half a million British-Bangladeshis today live in the UK, some of whose ancestors came to the UK before World War I. They occupy an important place in the evolving Bangladesh – UK relations primarily because of the close link the members of the community maintain with Bangladesh in terms of social/family engagements as well as business and investment interests. The British-Bangladeshis played a pivotal role in mobilizing international public opinion in favour of Bangladesh’s War of Independence in 1971. Due to their relentless efforts, London emerged as an epicenter of support activity for Bangladesh at that time. The community in Britain contributes significantly to the British economy as well. They run some 10,000 restaurants (thus forming the mainstay of British curry industry) that are largely manned by people of Bangladeshi origin. These restaurants employ about 90,000 workers with an annual turnover of around £3.5 billion.

The British-Bangladeshi Community is thriving in the United Kingdom; perhaps their third or even fourth generations are on their way to establishing themselves in the mainstream British business, commerce and politics. They are increasingly making position in the mainstream Political parties and Local decision-making bodies. The community has earned for itself a respectable position in the mainstream British society with a large number having been awarded the titles like Member or Order of the British Empire (MBE or OBE) in recognition of their contributions to the British society. Around 100 British-Bangladeshi Councilors are playing constructive role in the Councils. Some of them are entrusted with responsibilities of Mayors and Leaders of the Council. The Community has got its first ever MP of Bangladeshi origin elected to the British Parliament.

The High Commission attaches priority to its interaction and engagement with the community. Each year, the High Commission promotes assists and participates hundreds of events organized by numerous community organizations.

Reception to Elected Representatives in UK

The High Commission accorded reception on 04 October  2010 in honour of the first British-Bangladeshi elected as Member of Parliament Ms. Rushanara Ali and some 70 British-Bangladeshi Councillors elected around the UK. Hon’ble Foreign Minister Dr. Dipu Moni and Mayor of Sylhet Mr. Bador Uddin Ahmed Kamran were present at the event.

Bangla Media:

The Bangla ethnic media in the UK is one of the world’s oldest and largest Bangla media and has earned a leading reputation with 5 TV channels and over 12 Bangla and English ethnic dailies/weeklies. These are doing a commendable job of creating awareness amongst the second and third generation British-Bangladeshis about Bangladesh and its culture.

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Education:

Bangladesh has good education cooperation with the UK. Universities and reputed collages in the UK are preferred destination for higher studies of Bangladeshi students. Bangladesh also received a good number of scholarships for higher studies and training from UK under Chevening scholarship, Commonwealth scholarship for students.

Outstanding Achievement Award:

Bangladesh High Commission, London has been organising Outstanding Achievement Award once every year since 2006, to recognise the best talented students from among the British-Bangladeshi Diaspora with outstanding score in GCSE and ‘A’ level Exams. Over the years the event has earned a certain degree of reputations and prestige.       The objective of the Award is basically to recognise and encourage those youngsters for whom the future holds a lot of promise. This is also meant to encourage them to look back and try to establish links with the country of their parents- Bangladesh, a country that would like to endear them. The Outstanding Achievement may be a unique and exceptional undertaking of Bangladesh Mission in London.

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Cultural Cooperation

Bangladesh has a rich cultural tradition covering all aspects and forms of finer living and expression. Her culture is influenced by three world religions- Hinduism, Buddhism and Islam in successive order. Like a colourful montage, the cultural tradition of the country is a happy blending of many variants, unique in diversity but in essence greatly symmetrical. The cultural ties between UK and Bangladesh are gaining momentum as well. Cultural relations are powerful tools  promote understanding and harmonious co-existence, protect diversity and nourish cultural heritage.

The High Commission  celebrates  various  cultural events to  bring the sights and sounds of Bangladesh to the people of Britain.

Hundreds of British Bangladeshi  Cultural and Community  organizations through the UK celebrates  major cultural events, organizes colourful “Mela” and cultural programme, that are forging common grounds between the British Bangladeshi community and the mosaic of cultural diversity of Great Britain.

Defence Partnership

Historically there has been a strong and spontaneous influence of British legislation and the English language on Bangladesh’s civil, judicial, academic and military institutions drawing the two peoples on a common intellectual platform. Right from the very inception of Bangladesh, defence and security cooperation between Bangladesh and the UK has been warm and intense. The UK’s continual support to provide all out assistance in developing and training Bangladesh Armed Forces is well marked. A good number of Bangladeshi Armed Forces personnel are trained in UK every year at the Sandhurst Royal Military Academy, Royal College of Defence Studies and at the Joint Defence Command Staff Courses. UK has also provided significant military and advisory assistance in setting up the prestigious Defence Services Command and Staff College and the National Defence College (NDC) of Bangladesh. British Military Assistance Team had been in Bangladesh as instructors for many years. The two Navies are also cooperating closely while most of the ships of Bangladesh Navy (BN) have been procured from Royal Navy thereby facilitating BN achieve commendable capability. Royal Navy has also provided technical advice in setting up important BN infrastructure such as BN Dockyard. The two armed forces have also been working closely in UN Peace-keeping missions and in the global war on terror. Exchange of high profile military visits has also been a hallmark of defence cooperation between the two countries. This excellent cooperation is expected to grow in the future.

Bangladesh High Commission in London plays a central role in adding speed and substance in the burgeoing relations. The High Commission takes a lead role in safeguarding and furthering the interests of Bangladesh as well as that of the community in Great Britain. The High Commission’s areas of activity include all major spheres namely political, economic, trade and investment.

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