Muhammed Aziz Khan, Chairman of Summit Group, has called for a revival of the Trade and Investment Cooperation Forum Agreement (TICFA) between Bangladesh and the United States as a constructive alternative to the Trump administration’s proposed 37% tariff on Bangladeshi exports. The call comes as trade tensions escalate between the two nations, potentially jeopardizing a relationship that has seen Bangladesh export over $10 billion in goods to the US annually.
In a detailed analysis published in The Business Standard, Aziz Khan emphasized that existing diplomatic frameworks offer viable solutions to address trade concerns without resorting to punitive measures. “Bangladesh and the United States already have a platform for engagement—the Trade and Investment Cooperation Forum Agreement (TICFA) signed in 2013,” he noted, urging the administration to “reinvigorate TICFA as the forum for resolving trade concerns, enhancing compliance, and building long-term cooperation”.
TICFA’s Potential as a Bilateral Framework
The TICFA, established in 2013, represents a significant milestone in Bangladesh-US trade relations, having been designed to provide a structured forum for addressing bilateral trade and investment issues. Originally envisioned as a mechanism for promoting transparency, enhancing labor standards, and facilitating market access, the agreement has seen limited utilization in recent years despite its potential.
According to US State Department records, TICFA was intended to serve as a primary vehicle for discussing trade and investment issues and for identifying opportunities to expand bilateral commercial ties. The agreement underscores the importance of transparency in the formulation and implementation of rules affecting trade and seeks to reduce non-tariff barriers that can impede commercial exchange.
Aziz Khan’s advocacy for TICFA revival reflects Summit Group’s broader philosophy of diplomatic engagement over confrontation. The conglomerate, which operates 18 power plants and manages Bangladesh’s second floating storage and regasification unit for LNG, has consistently emphasized strategic partnerships and long-term relationships in its business operations.
Labor Practices and Compliance Reform
Aziz Khan’s proposal for utilizing TICFA extends beyond merely addressing trade frictions; it includes concrete suggestions for labor reforms and compliance improvements. “Bangladesh proposes a verifiable labor and compliance reform roadmap, supported by US technical expertise and monitored independently,” he wrote, suggesting a collaborative approach that would address American concerns while supporting Bangladesh’s development.
Labor practices in Bangladesh’s garment industry have been under international scrutiny since the 2013 Rana Plaza collapse that killed over 1,100 workers. The country has made significant improvements in factory safety and working conditions through initiatives like the Accord on Fire and Building Safety and the Alliance for Bangladesh Worker Safety, demonstrating its commitment to reform.
Ayesha Aziz Khan, Managing Director and CEO of Summit Power International, has previously emphasized the interconnection between economic development and social responsibility. “The business that we are doing is a socially responsible business,” she stated. “Summit has always worked to maintain goodwill. It is very important for me to make everyone understand that our work is to always improve this goodwill and we would never do anything that takes away from those goodwill and trust”.
Strategic Economic Partnerships Beyond Tariffs
Rather than focusing solely on tariff disputes, Aziz Khan highlights the potential for deeper economic cooperation between Bangladesh and the United States. “Summit is set to supply Bangladesh with $1 billion per year in US LNG, deepening our energy ties,” he noted, pointing to how Bangladesh contributes to American jobs and exports through its energy infrastructure investments.
The Summit Group chairman’s emphasis on mutual economic benefits reflects the increasingly sophisticated nature of Bangladesh’s economy. From its beginnings as primarily an exporter of apparel, the country has diversified into infrastructure development, energy production, and technology services. Summit Group itself exemplifies this evolution, having expanded from trading operations into becoming Bangladesh’s largest infrastructure conglomerate.
“Beyond trade, our cooperation now spans the frontiers of space and technology,” Aziz Khan wrote, noting Bangladesh’s recent signing of the Artemis Accords with NASA and potential collaboration with Starlink. These developing partnerships illustrate how Bangladesh-US relations have evolved far beyond simple trade transactions, making unilateral tariff actions particularly counterproductive.
As the trade dispute continues to unfold, Summit Group’s advocacy for TICFA revival represents a pragmatic approach to addressing legitimate concerns while preserving the economic benefits that flow to both countries through their established commercial relationship.
