III - CanCham Bangladesh · M/S. Bata Shoe Company (Bangladesh) Limited Vice-President ... M/S. Sky Bangla Aviation Ltd. Director ... A Review Report

I I I

We are delighted to witness aspurt in bilateral relations betweenCanada and Bangladesh. TodayCanada is better known toBangladeshis than ever before,thanks to initiatives taken byHigh Commissioner RobertMcDougall, diplomats of theCanadian High Commission andthe Canada Bangladesh Chamberof Commerce and Industry. I amhappy to say that the CBCCI

Review has made ceaseless efforts to bridge information gaphad existed between the two friendly countries. We have seen exchange of visits by Canadian trade delegationsand dignitaries to Bangladesh. They have further added toincreasing cooperation between our two countries. CBCCI, on itspart, has highlighted and even initiated a number of steps topromote Canada in Bangladesh, the significant one being the jointseminar organized by CBCCI and leading Dhaka Chamber ofCommerce and Industry.

The Bangladesh government has already undertaken a series ofplans for people's welfare, the major ones being power andinfrastructure projects. The Export Development Corporation ofCanada can successfully participate in these projects as Canadahas being been recognized by Bangladeshis as their trusted andreliable development partner.

As Bangladesh is one of the most populated countries in theworld, there is always a high demand of agricultural products.Bangladesh is now very keen to develop its agricultural sectors.Canada can share with Bangladesh its advanced technology, andcome up with investment in the agro-based industries. CBCCIcan act as Canada's go-between in this regard.

CBCCI : Vision and Mission

Board of DirectorsMr. Masud RahmanM/S. Crane LimitedPresidentMr. John Douglas HearnsM/S. Bata Shoe Company (Bangladesh) LimitedVice-PresidentMr. Shahab SattarM/S. GMG Airlines LimitedVice-PresidentMr. Wali SattarM/S. Utah Group of CompaniesSecretary GeneralMr. Manzur-ur-Rahman RuskinM/S. Rahim Rahman & AghaTreasurerMr. Aftab-ul IslamM/S. International Office EquipmentDirectorMr. J. Ekram HussainM/S. Sky Bangla Aviation Ltd.DirectorMr. Ahmad Mushfeq AnamM/S. X-Fer LimitedDirectorMr. Md. Junaed Ibna AliM/S. Trade Land InternationalDirector

C O N T E N T S

Canada urges Bangladesh toseize North American market 2Canada ready to help overcome power crisis in Bangladesh 4Whither trade and investment between Canada, Bangladesh? 6New Canadian chancery in Dhaka opened 10

CBCCI O�ceCanada Bangladesh Chamber of Commerce and IndustryConcord Tower, Suite# 504 (5th Floor)113 Kazi Nazrul Avenue, Dhaka-1000, BangladeshTel: +88-02-9359359, 9351427Fax: +88-02-9359407E-mail: [email protected] Website: www.cbcci.org

Accelerate economic prosperity of

C anada and Bangladesh through trade and

i nvestment.

S erve the business communities of

Canada and Bangladesh at every step

drawing on valuable expertise of the

honorable members from di�erent

business �elds of the two friendly

countries.

Review Advisory BoardMr. Masud Rahman, ChairmanMr. Wali Sattar, MemberMr. Manzur-ur-Rahman Ruskin, MemberMr. J. Ekram Hussain, MemberEditor of CBCCI ReviewMr. Rahman Jahangir

Masud RahmanPresident

From President's Desk

2 CBCCI Review, November 2009

Cover Story

A Review Report

Canadian High Commissioner inDhaka Robert McDougall has urged theBangladeshi entrepreneurs to expandthe trade volume with the NorthAmerican country by tapping the fullpotential of the local businesses.

McDougall said of the total exporteditems from Bangladesh to Canada, aduty-free market for the country since2003, 95 percent include garment items.

"Bangladesh's success in garment andtextile exports should spread to othersectors in Canada," he said at a seminaron "Trade and Investment-CanadaBangladesh Initiatives" at DhakaChamber of Commerce and Industry(DCCI) office in the capital.

He said garment, agro-commodities,communication equipment, metals,pulp and paper, and CNG equipment arenow being traded both the ways.

McDougall said the high commissionis preparing a guidebook on Bangladeshfor potential Canadian investors.

He said the volume of bilateral tradebetween the two countries reached $956million in 2008, of which Bangladeshexported goods worth $642 million andimported goods worth $314 million.

Commerce Minister Faruk Khanattended the seminar as chief guest,while President of the Federation ofBangladesh Chambers of Commerceand Industry (FBCCI) Annisul Huq wasthe special guest.

DCCI President Zafar Osmanconducted the seminar where investors,businesspeople, chamber leaders andindustrialists, among others, werepresent. DCCI and Canada-BangladeshChamber of Commerce and Industry(CBCCI) jointly organised the seminar.

Promising a business-friendlyenvironment, Faruk Khan said thegovernment would amend theprocurement rules for reducing corruptionin government purchase process.

He said the government has alreadytaken steps to reduce bank interest rate at12 percent for the basic commodityimporters to keep the local market stable.

Canada urges Bangladesh toseize North American market

FBCCI President Mr Annisul Huq (3rd from left) delivering his speech in a joint seminar titled "Trade and Investment-CanadaBangladesh Initiatives", organized by DCCI and CBCCI at DCCI auditorium on 5th May 2009. High Commissioner of Canada to

Bangladesh Mr Robert McDougall (right), CBCCI President Mr Masud Rahman (second from right), Commerce Minister MrMuhammad Faruk Khan (3rd from right), DCCI President Mr Zafar Osman (middle), DCCI Senior Vice President Mr Shekil

Chowdhury (2nd from left) and Vice President Mr Sirajuddin Malik (left) are also seen in the photo.

3CBCCI Review, November 2009

Cover Story

The minister called upon theCanadian businesspeople to come withtheir investment in Bangladesh as thegovernment is working to improve thepower and energy situation for meetingthe growing demand.

"Canada can import jute, pharma-ceuticals, small ships, manpower and ITexperts from Bangladesh," he added.

Annisul Huq said Bangladesh has anample opportunity for drawinginvestment. "We may have politicalproblems, but still we achieved morethan 6 percent growth over the last fewyears, which indicates that the country

has the investment potential," he said. CBCCI President Masudur Rahman

said the bilateral relationship betweenCanada and Bangladesh is yet todevelop to an expected level. He urgedthe government to seek Canadianassistance to develop the country'senergy and power sector.

"Canada has expressed interest towork in the power sector here,especially in natural gas exploration,production and distribution," Rahmansaid.

The CBCCI is taking steps to furtherincrease the bilateral trade, which

expanded by 400 percent in the last sixyears, he added.

Zafar Osman said Bangladesh is thesecond largest exporter of goods fromSouth Asia to Canada after India.Canada's primary imports fromBangladesh include knit apparel, wovengarment, textile items, seafood and jutegoods, he said.

Canadian exports to Bangladeshinclude steel, iron, machinery,electronic items, certain types of rootsand tubers, cereals, legumes andoilseeds, he added.

It is a plea-sure to providean update onbehalf of theSaskatchewane x p o r t i n gcommunity tothe CanadaB a n g l a d e s hChamber ofC o m m e r c e

and Industry - CBCCI Review.Opportunities such as these allow our

organization the opportunity to increasethe public profile of STEP. I stronglybelieve that this province and itsbusiness leaders have an important storyto tell. Both opportunities and obstaclesabound and we need to strategicallyclarify where growth potential exists andwe need to find the appropriate means tocapture it.

STEP has a proven track record ofbuilding relationships that are vital to thesuccess of exporters and we continue todisplay leadership in our approach ofassisting in economic growth for ourmembers. At a time when theentrepreneurs of this province lead thenation in economic growth, employmentgrowth, and several other economicindicators, new opportunities continue toevolve. This is truly a great time to be

from Saskatchewan and thisorganization is committed to building onthis momentum.

Maintaining our economic thrustduring a global economic slowdowndoes have challenges but I remainconfident in our ability. Even as jobgrowth is slowing down in otherjurisdictions, we are in the enviableposition of having 14,800 more peopleworking in Saskatchewan in November2008 compared to November 2007.With an increase of 2.9 per cent, we havethe second-highest growth rate in thecountry and almost five times thenational average.

At a time when anxiety exists overglobal financial challenges,Saskatchewan has exceeded allexpectations. Figure figures fromStatistics Canada show thatSaskatchewan's international exports hada remarkable 58 per cent increase to$31.2 billion dollars compared to $19.7billion dollars in 2007. With a furtherreview of the information, it showsSaskatchewan's reliance on the USmarket is the lowest of any province inCanada except for British Columbiawhose exports have remained flat overthe last decade.

We have no elusions in Saskatchewan.Our livelihoods and our ability to buildand sustain a growing economy arehinged directly on our ability to competeon the global stage. For the first fourmonths of 2009, Statistics Canadarevealed some interesting data.Although our overall exports were downfrom the record levels of 2008 by 17%which can be directly tied to our tradewith the US and the price of a barrel of oilthere continued to be some remarkablesurprises. For example, trade with China isup 98%, Bangladesh 213%, Iraq 819%,India 25% and Turkey 63%.

The secondary part of this informationis about what is not statistically recorded,namely the incredible volume of goodsand services that Saskatchewan marketsto other provinces across Canada. Whenone combines both international anddomestic exports, Saskatchewan'slivelihood is directly linked to the globaleconomy and we can compete becausewe prove it everyday. Saskatchewanalso broke a new milestone with thelatest announcement by passing Albertato become the largest exporter per capitaof any province in Canada.

–The writer is the President & CEOof Saskatchewan Trade and Export

Partnership (STEP)Website: www.sasktrade.sk.ca

Guest Column

STEP seeks a great leap forward in Canada-Bangladesh trade

By Lionel LaBelle


Canada, in view of critical power

crisis in Bangladesh, has o�ered its rich

expertise in meeting the latter’s fast-

growing needs by using renewable

energy resources. Canada has earned

t he reputation of a global leader in this

regard. The Canadian o�er came

through leading Canadian lawmaker

Senator Mac Harb who gave the

following interview. After almost 15

y ears as a Member of Parliament, Mac

Harb was appointed to the Senate of

Canada. He tabled legislation in the

Senate relating to electoral reform and

was also an active member of the

Senate Committee on Banking, Trade

and Commerce as well as the National

Finance Committee and the Scrutiny

and Regulations Committee. His

website is : http://sen.parl.gc.ca/mharb/

Q: Would you please, Senator MacHarb, describe the present state ofCanada- Bangladesh relations?

MH: Canada and Bangladesh aregrowing closer through economic,diplomatic and ever-widening Diasporaties. Canada appreciates that Bangladeshis an emerging economy that will be aneconomic powerhouse in the years ahead.Canada will continue to build bridgesbetween the two countries so that eachnation's citizens will benefit from theopportunities of the future.

Q: What would you suggest forfurther deepening bilateral relationsbetween Canada and Bangladesh?

MH: I believe it is important for ourtwo countries to increase the number oftrade and investment exchanges. Openlines of communication betweengovernment and the private sector, andmutual awareness of the context inwhich we do business will ensure timelyand profitable initiatives in trade,energy production and technologyresearch and development.

Q: Bangladesh is currently reelingunder severe power crisis. CanCanada offer its expertise in tappingand developing renewable energy toreplace highly expensive electricity?

MH: The global market forrenewable and sustainable energy is

ever-expanding, and Bangladesh is notalone in its search for affordable,accessible power. Canada has longbeen a world leader in energygeneration and we are currentlyramping up our own efforts to "green"our power sources. Certainlyopportunities abound for Canada andBangladesh to share expertise,technology and know-how in this field.An example of such an opportunity isthe research currently being done inCanada by CANMET EnergyTechnology Centre which has madeprogress in converting natural gas intoliquid form that is usable in cars. GivenBangladesh's rich deposits of naturalgas, this will certainly be anopportunity for future joint ventures.

Q: What are the achievements ofCanada in the field of multifarioususe of solar energy? How can Canadaassist Bangladesh in this field?

MH: Countries around the world areinterested in solar for two reasons:renewable energy is expected to be abig part of everyone's future and itshould promise economic benefits.Canada hosts the CanSIA solar industryconference each year, bringing togetherdelegates and exhibitors from acrossCanada and around the world.Bangladesh can and should takeadvantage of Canada's growing solarexpertise through professionalexchanges and fact-finding missions.

Q: Canada has offered duty andquota free excess of Bangladeshiproducts. But Bangladesh has a veryskinny list of exportables. CanCanada help Bangladesh diversify itsexport list and make headway inCanadian market as Bangladesh hasabundance of cheap labour?

MH: The Bangladeshi government hasbeen working diligently on diversificationof its economy but the recent economicslowdown has impacted its efforts. As Ihave said before, Bangladesh is a countryrich in resources and in entrepreneurialspirit. I believe that Bangladesh's hard-working and inexpensive labour forcegives it a huge advantage in a globalmarketplace in which western economiescannot compete in the area of labour-intensive manufacturing. Certainlyexpansion of the list of exportables willrequire a concerted effort by thegovernment and private sector groupssuch as the CBCCI on targeted bilateraltrade promotion programs.

Q: In what ways can Canada helpBangladesh in arranging road showsfor investment promotion?

MH: Investment in emerging marketsis vital to Canada's economic healthand long-term prosperity, just as theinvestments themselves will be a boonto the recipient market. There aremany mechanisms which can beemployed to encourage road shows or"trade missions" between our countries

Senator Mac Harb tells CBCCI Review

Canada ready to help overcome power crisis in Bangladesh

By Rahman Jahangir


and I believe that CBCCI, along withEDC, and the various governmentministry officials must work together toensure that Canadian businesses areaware of the tremendous opportunitiesthat exist in Bangladesh in a widevariety of sectors.

Q: Bangladesh is planning to buildnuclear plant for generating cheapand reliable electricity. Do you thinkCanada can help us in this regard?

MH: There is no country betterequipped to assist Bangladesh in itsefforts to move towards nuclear powergeneration. Bangladesh will be thebenefactor of decades of experienceand practical knowledge. Canada hasworked with countries around the worldand I have no doubt that it can play amajor role in bringing nuclear powergeneration online in Bangladesh.

Q: Canada is a pioneer of greenprojects. Can your governmentinitiate such projects in Bangladeshusing CBCCI as the launching pad?

MH: It is vital that the CBCCI firstwork in partnership with thegovernment of Bangladesh to identifypriorities and to take important stepstoward international standards andpractices. I do think CBCCI is very

well positioned to be the liaisonbetween private and public sectorexpertise and investment in "green"initiatives in Bangladesh and inCanada. CBCCI's expertise in bothcountries allows it to bring togetherstakeholders who will mutually benefitfrom these initiatives.

Q: Export DevelopmentCorporation of Canada can supportpower and other infrastructureprojects Bangladesh has of lateundertaken on a priority basis. Doyou foresee such a support in the daysahead?

MH: EDC makes program andinvestment decisions based on the bestbusiness case scenario. In my opinion,Bangladesh as an emerging marketdeserves serious consideration by EDCon a case by case basis in these andother investment sectors. Given theextensive relationship that existsbetween our countries, I would expectthere would be positive considerationgiven to projects that are in line withmodern international businesspractices.

Q: Bangladeshi students are nowgoing to UK, Australia and the US forhigher studies every year. AreCanadian universities prepared to

have a share in this regard? What doyour universities offer to lurestudents from countries likeBangladesh?

MH: Certainly Canadian universitieswould welcome Bangladeshi studentsinto their programs but they arecurrently faced with a limited number ofvisas being distributed for visitingstudents. While Canadian immigrationofficials are aware of this situation,there remains a need to examine thisissue as it is evident that other countriessuch as the UK and Australia have adisproportionate share of theBangladesh students attending theirpost-secondary institutions. Canadalooks forward to the day when it canmore fully share its academicopportunities with Bangladeshistudents who are, of course, the futureof their country. In the meanwhile,perhaps CBCCI can arrange educationexchanges and training sessionsbetween Canadian post-secondaryinstitutions and their counterparts inBangladesh to enrich the instructorsand their students in both countries.

Q: Are you planning to visitBangladesh?

MH: Inshallah. I hope so.

Senator Mac Harb leading an international peace rally


Canada has a long and well establishedrelationship with Bangladesh.

Canada was one of the first countries torecognize Bangladesh as an independentnation after declaring its independence in1971.

Since then, our two countries have builta solid foundation of friendship andcooperation founded on shared goals and ahealthy and growing trade relationship.

Approximately 70,000 Bangladeshi-Canadians currently reside in Canada andthousand s are attending institutes ofhigher learning.

This educational opportunity is one areawhereby further initiatives could beintroduced that would be mutuallybeneficial to both nations.

Inter-country trade has experiencedgrowth in excess of 400% in the past years- on both directions.

This current level of trade stands atapproximately C$955 million - withCanada importing about C$642 millionworth of Bangladesh products and C$313being exported to Bangladesh.

With an increase focus and expansion ofthe product base, this trade should surpassC$ 1 billion in 2009.

Canada's direct foreign investment ispresently small, but it is growing and thepotential for further investment issignificant, provided that the investmentatmosphere is attractive enough to lurepotential investors to Bangladesh as alucrative investment destination.

The BATA Shoe organization wasfounded by Tomas BATA in 1894 in zlin inwhat was then called Czechoslovakia.

In advance of the German Nazi invasionTomas BATA, and approximately 100Czech families escaped to the U.K. by boatbefore Migrating to Canada in 1939.

They set up a footwear factory,engineering facility and a distributioncentre approximately 200km east ofToronto in a town which would becomeknown as BATAWA - this town, with apopulation of 6,000 still exists today.

From this small town in rural OntarioThomas J. BATA, the son of the founder,built the largest and most diversifiedfootwear marketing and distributionempire world-wide.

Today we operate in more than 60countries, with more than 4,600 retailoutlets in over 50 countries andmanufacturer in 40 factories in 26countries.

BATA sells 1 million pairs of shoesworld-wide every day of the year.

Mr. BATA was awarded the title ofcompanion of the order of Canada 1982 -he died on September 1, 2008.

I believe BATA is the oldest as well asthe single largest Canadian directinvestment in Bangladesh.

We began our business here in 1962 andincorporated after independence in 1972.

In other words, we were here beforeindependence - we operated throughoutthe struggle - we are still here today - andwe hope to enjoy a long and prosperousfuture in Bangladesh.

An interesting side - note here is that ourcompany manager during the struggle forindependence - Mr. William Ouderland - isthe only foreigner ever honoured with thestate insignia of 'BIR PRATIK' by thegovernment of Bangladesh for his active

participation in, and heroic contribution to,the war of liberation.

Today BATA Bangladesh produces inexcess of 30 million pairs annually withsales of approximately Tk. 5.45 billion. Weemploy 1500 people directly in 2 factoriesand 1 tannery - which, by the way, has avery modern effluent plat which has beenupgraded in 2008 to exceed internationalstandard.

In addition, we operate 25 retail stores,conduct wholesale business throughapproximately 600 independent dealersand create 25,000 - 30,000 jobs throughour associated business units which supplyraw materials, components and finishedgoods.

In 2008 BATA Bangladesh contributedover Tk. 1.1 billion in various taxes andfees to the national exchequer - whichrepresented 77% of the total tax paid in thefootwear sector where we have a 23%market share.

With regard to trade initiatives, in 2003Canada granted open market access toBangladesh which is one of the keycatalysts that resulted in the acceleratedgrowth in trade.

However, the product base is extremelynarrow. Canadian exports consists ofmainly agri-based products such as wheat,canola, pulses, etc. - which makes up 65%of volume.

Bangladeshi exports to Canada exhibit avery heavy dependence and ready madegarments which accounts for 95%.

In order to boost trade and investmentboth countries need a wider and morediversified range of trade andmanufacturing.

Various institutions and mechanisms arealready in place to facilitate this exchangeof commerce - it is only a matter of talkingproper advantage of them.

In order to make a major impact tocreative accelerated trade & investment webelieve it is imperative for both theCanadian international developmentagency (C.I.D.A.) and export developmentCanada, as well as the government ofBangladesh, to adopt a more pro-activeapproach.

Key-note presentation at CBCCI-DCCI joint seminar

Whither trade and investment between Canada, Bangladesh?

By John Douglas Hearns


C.I.D.A. input would be in the areas ofcapacity building, assistance in creating alink between supplier and buyer andorganizing and promoting product-wisetrade fairs.

Export development Canada couldcontribute through assistance in financingprojects to upgrade and modernizetechnologies.

Potential broad impact, high potentialtarget sectors could be power, oil & gas,information technology, medium0rangeaircraft and cutting-edge "Green" powertechnology - to name a few.

However, to create a practical, conciseexample, we would like to focus on thepower and oil & gas sectors here today, asI believe these two commodities arehaving a direct and adverse affect on allof us.

Bangladesh has a rather large gapbetween power generation capacities andpower demand.

As a result, load-sheding and severecurrency fluctuations are a commonoccurrence - at BATA we are loosing inexcess of 100 hours of production monthlyin each of our 3 manufacturing facilities -so you can imagine the losses involved.

This shortfall in power supply is alsoone of the main deterrents for powergeneration - including hydro, thermal andnuclear based plants.

Bangladesh has Bi-lateral agreementson nuclear co-operation with the UnitedStates, France and China.

To our knowledge, no such agreementexists with Canada.

It would be helpful, in order to facilitateassistance in the area of nuclear powergeneration, if a similar agreement could bemade between our two countries.

I believe C.I.D.A. Inc. has the capacityof finance feasibility studies regardingsuch a project.

Following this Canadian Commercialcorporation could develop a projectproposal to the government of Bangladeshfor infrastructure development in specificfields.

It is important that the first key steps inthis initiative be pro-actively perused bythe Bangladesh government's requestdirectly to the government of Canada.

If the negotiation is state - to-state theprocess can possibly be "fast tracked".

Power and oil & gas go hand-in-hand asexisting power plants are powered in thismanner.

Joint ventures could be developedbetween, for example, Bapex (theBangladesh Petroleum Exploration &Production Company) and Canadiancompanies with experience and expertisein exploration, drilling, processing andpipeline technology.

Trade fairs or expositions could beorganized in western Canada, where themajority of these companies are located, toshare and discuss potential partnerships.

Investors are interested.

Why - because of the significantpotential of a large market of 150 million,a large low-cost, highly productive labourforce, a strategic location between two ofthe fastest growing economies in the worldand access to a sea port - among otherfactors.

When potential investors come toBangladesh to investigate investmentopportunities - where do they go foradvice.

The go to companies that are alreadyinvested here - we receive 2 to 4 seriousinvestment groups in an average month.

What are they interested in? 1. The potential to get an acceptable

return on their investment. 2. How difficult it is to set up a company

in Bangladesh? 3. What are the procedure s and how

difficult is it to repatriate profits? 4. How strong is the protection of

intellectual properties? 5. What are the other negative factors

that come into play and what is thebusiness atmosphere really like forinternational companies?

With that in mind I would that the first,imperative trade & investment initiativeshould be to ensure that the environment istrade & investment friendly for investorswho are already established -from mycurrent experience I would say that this ispresently not the case.

As mentioned earlier, Bangladesh has agreat deal of trade & investment potentialand opportunities.

However, many investment, sourcingand selling decisions are made by

individuals sitting in an office inVancouver or Toronto or Montreal basedupon perception.

Unfortunately, perception is a createdphenomenon - and it is largely created bythe international media.

In my opinion - or should I say myperception - Bangladesh has historicallycreated an image and been promoted to theworld in order to attract AID - rather thanto attract trade & investment.

The outside world, which includesoutside investors and buyers, when itthinks of Bangladesh conjures up image ofhartels, demonstrations, violent labourunrest, political bickering seriousenvironmental issues.

Also corruption continues to be a keydeterant associated with doing business inBangladesh.

For many years Bangladesh topped theinternational list of most corrupt countries.

Last year it was ranked number 7 -however the index or score did not change- in fact what happened is that 6 countriesbecame more corrupt during this period.

I believe that the single most importantinitiative to enhance trade & investmentwould be to embark on a well structured,long term promotion campaign to attractpotential business to consider Bangladeshas a Vibrant, business friendly destinationfor investment and trade - Malaysia hasbeen very successful with a similarcampaign "Malaysia truly Asia" aimed atattracting tourism. - Angola has a similarcampaign currently to attract business andinvestors.

This campaign should also highlight theopen trade access offered to Bangladeshmade products in various markets.

This will become even more as a sellingpoint as buyers search for new sourcing asthey shift from China due to variousreasons.

However, I must stress here, that for thispromotional initiative to be successful, thebusiness infrastructure in the country mustbe evolved and transformed rapidly intoone that is much more attractive and onethat is perceived to be a viable and safeinvestment and trade destination.

–The key-note presenter is CBCCIVice-President and Managing Director of

BATA, Bangladesh



It was asignificant dayfor Canada-B a n g l a d e s hrelations. Twochambers ofcommerce ofB a n g l a d e s hhave teamedup to explorej o i n t l y

prospects and possibilities of furtherstrengthening our bilateral relations. Wehave in our midst the CommerceMinister of Bangladesh. It means, thegovernment too is keen to see relationsbetween Canada and Bangladesh furtherstrengthened to our mutual benefit.

Canada Bangladesh Chamber ofCommerce and Industry takes pride inannouncing that trade ties between ourtwo countries are being beefed up withthe passage of every day. CBCCI gets alot of business enquiries fromBangladeshi & Canadian businessmen.CBCCI is taking steps one after another,slowly but steadily to promote the causeof bilateral trade which has expanded by400 per cent in the last six years.

Garments, agri-commodities,communication equipment, metals, pulpand paper, CNG equipment etc are nowtraded both ways.

Happily, Canada has granted duty freeaccess to Bangladeshi products to its vastmarket. But then Bangladesh must beready to join more developed economiesin the international marketplace with awider array of goods and services. Thecurrent economic crisis, and the likelyplunge in commodity prices that willaccompany it, point to the need fordiversification of Bangladesh's economicbase. Other industries, which haveshown very strong growth potential,include chemical, steel, mining, andpaper and pulp industry, all sectors inwhich Canadian expertise andinvestment can be useful. Canada too

can help Bangladesh with its expertise inproduct diversification.

The present government has a role toplay addressing the basic requirements ofeconomic growth - good governance,adequate infrastructure and a stable andreliable power sector. The Bangladeshgovernment has made some headwayimproving the climate for foreigninvestors and liberalizing the capitalmarkets. For example, it has negotiatedwith foreign firms, including firms fromCanada, for oil and gas exploration.

The government has done many thingsright over the past few decades -including encouraging migration,resulting in remittances totaling morethan 6.5 billion US dollars.

But to move to the next economiclevel, the present government mustcontinue to improve in areas of publicaccountability, electoral stability,transparency and corruption within boththe public service and the private sector,all of which are major constraints toforeign investment in Bangladesh.

The mutually beneficial relationshipbetween Canada and Bangladesh has notyet peaked. There is room for growthand it is in both of our interests to makeevery effort to seize this opportunity.

Organizations such as the CBCCI havemade progress in further developingthese ties. The CBCCI has beenparticularly effective in researching newmarkets for investment, leading tradedelegations from Canada to meet withgovernment and business officials andultimately helping businesses taking fulladvantage of the existing duty free accessfor Bangladesh products in Canada.

Trade delegations from Canada toBangladesh and representation toCanadian trade officials will ensure thatthe lines of communication and theawareness of potential opportunities donot go unexplored.

We are happy to know that CIDA willtake care of anticipated effects of climatechange in Bangladesh, impactassessment and measures for disaster riskand climate change adaptation. Canada'srecent contribution to the World Bankglobal fund for climate change, which isslated to target Bangladesh as a prioritycountry, will complement these efforts.CIDA should help Bangladesh undertakegreen projects so as to mitigate climatechange fallout.

As we are all aware, Bangladesh hasput up a battle to ease power and watercrises. Here too Canada can comeforward in helping solve such problemsthat have seriously affected the commonman. Canada can transfer its nuclearpower expertise to Bangladesh forproduction of cheaper and sustainableelectricity, a vital input for fastereconomic growth.

Honourable Minister, Bangladesh canseek Canadian assistance to develop itsenergy and power sector. Canada hasexpressed its interest to work in thepower sector here, especially in naturalgas exploration, production anddistribution. If there is an interest fromBangladesh on nuclear cooperation, HighCommissioner HE Mr RobertMcDougall has assured it can beexplored.

Canada has vast experience intelecommunications, mass transport,computer technology and energyprojects, ranging from BlackBerry hand-helds to nuclear power plants, toadvanced software, to cutting-edge greenpower technologies, to medium-rangeaircraft.

–Text of CBCCI President MasudRahman's speech at

CBCCI-DCCI seminar

A step forward in relations between Canada, Bangladesh

by Masud Rahman,President, Canada Bangladesh Chamber of Commerce and Industry (CBCCI)



Since indepen-dence of Bangla-desh in 1971,Canada andBangladesh aremaintaining veryfriendly andcordial bilateralrelations. Canadaextended marketaccess Initiatives

for LDCs from 1 January 2003. Under thisInitiative, all the products originated inLDCs have been enjoying duty free andquota free access in the markets of Canadaexcept some products like dairy, poultryand egg which remain subject to duties andquotas. And since then exports fromBangladesh to Canada have beenprogressively increasing.

Canada - Bangladesh trade grew over US$ 533 million in 2007-08. Canadian importsfrom Bangladesh also increased in 2007-08to US$ 360 from US$ 156.45 in 2006-07.

Bangladesh is the second largest exporterof goods from South Asia to Canada, afterIndia. Canada's primary imports fromBangladesh include knit apparel, textilearticles, seafood and jute foods. The mainCanadian exports to Bangladesh includeedible vegetables and certain roots andtubers, cereals, legumes, oilseeds, iron andsteel, machinery and mechanicalappliances.

It is apparent that bilateral trade betweenthese two countries have been increasing,but there are huge potentials to growfurther. Canada imports almost all types ofapparels from Bangladesh. Exporters ofBangladesh can make further inroad intoCanadian market by concentrating more onprevalent fashions and trends there.

Canada Bangladesh Chamber ofCommerce and Industry (CBCCI) havecomes forward to take a lead forstrengthening bilateral trade and businessrelations between the two countries further.Trade and Investment issues need to be

discussed intensively to identify potentialareas for new cooperation. In this contextpeople -to-people links between Canadaand Bangladesh are pertinent.

In 2007-08 (July-March) in total 92foreign and joint investment proposal shave been registered in Bangladesh, ofwhich only three investment proposalswere from Canada, which was 16.25% ofthe total investment proposals received byBangladesh. Canadian Companies havealready made their mark in severalinfrastructural and services sector inBangladesh like gas, telecommunication,food grain, management and consultancy.

Bangladesh government is going toannounce a very promising IndustrialPolicy in 2009 where an extensive packageof incentives is expected to be announcedfor the foreign investors. In this policypackage, harmonization of standard andcertification with the regional countries,extension of tax -holiday benefits for theforeign investments like domesticindustries, full repatriation of investedcapital along with repatriation of profitsand dividends while investment of profitwill be treated as new investment,protection of intellectual property in respectof any conflict resolution etc are likely tobe included.

Power and energy in the number onerequirement in Bangladesh now, for whichprivate sector is struggling hard. Almost allinfrastructural and energy sector are openfor private sector investment inBangladesh. Our liberal trade andinvestment policy represents a goodpotential for Canadian investors.

Government of Bangladesh has recentlyannounced a Stimulus Policy Package toface on going global recession, which willbe implemented in the short, medium longterm. This will be reflected in the upcomingNational Budget 2009-10 which we believewill demonstrate willingness of thegovernment to encourage investment.

Due to the long on-going economicrecession, some relocation and shifting ofbusiness and industries may take place.

Bangladesh will welcome intendinginvestments which will help strengthenbackward linkage, improve infrastructurelike power and energy sector, IT andsoftware and other related sectors.

A 3-Day Bangladesh Single CountryTrade Show was organized in Toronto,Canada in 2008. The show was organizedby Export Promotion Bureau ofBangladesh in cooperation withBangladesh High Commission in Ottawa,Trade Facilitation Office Canada (TFOC)and Canada Bangladesh Business Council.

We came to know that fifty threeBangladeshi manufacturing exportingcompanies participated in the trade show.They displayed readymade garments,knitwear, handicrafts, value added juteproducts, leather products, leatherfootwear, ceramic tableware, tiles, fooditems, home textile, terry towel, boutiqueitems, ladies' apparel, sarees etc. The showattracted hundreds of visitors, buyers,businessmen and representatives of manywell known business houses. Officials offamous chain stores like Wal-Mart, bay,Sears and Zellers visited the show andestablished direct contacts with theexhibiting companies from Bangladeshiproducts they were excited. We believe thatBangladesh can go a long way if we all joinour hands together.

We may organize similar Single CountryFair in the year 2009 also to exposeproducts from Bangladesh and exploremarket in Canada. DCCI and CBCCI canjoin hands together in this respect incooperation with Canadian HighCommission in Bangladesh. Our Hon'bleChief Guest may kindly advise ExportPromotion Bureau and our HighCommission in Ottawa to extend allcooperation to the private sector in thisregard.

–Text of DCCI President Zafar Osman'sspeech at CBCCI-DCCI seminar

CBCCI takes lead in boostingtrade with Canada

By Zafar Osman,President, Dhaka Chamber of Commerce and Industry (DCCI)



Canadian Parliamentary SecretaryDeepak Obhrai, during his visit toDhaka from July 8 to 12, 2009, topromote bilateral relations withBangladesh, presided over theofficial opening of the newCanadian High Commissionbuilding (incorporating bothChancery and OR).

Mr. Obhrai was accompanied byacting Director General of the Southand Southeast Asia and OceaniaBureau at Foreign Affairs andInternational Trade Canada(DFAIT) Mr Greg Giokas.

During his stay, Mr. Obhrai heldbilateral talks with the Ministers ofForeign Affairs, Commerce andEducation, as well as the StateMinister for Foreign Affairs andhigh officials of the Ministry ofHome Affairs. He also met with parliamentarians from the newly-created Bangladesh-Canada

Parliamentary Friendship Group.Parliamentary Secretary Mr

Obhrai and Dr. Hasan Mahmud,State Minister for Foreign Affairs,officially opened the new HighCommission in the presence of High

Commissioner Mr RobertMcDougall and a group of localdignitaries, foreign guests andjournalists.

Mr. Obhrai also attended as chiefguest the opening of a painting

From left: Bangladesh State Minister for Foreign Affairs Dr Hasan Mahmud, Mr Obhrai; High CommissionerMr Robert McDougall, Director General Mr Greg Giokas

From left Mr Deepak Obhrai, Mr Robert McDougall, High Commissioner;Ms Punam Azad; Dr Hasan Mahmud and Ms Shaheen Islam

Canada Bangladesh bilateral relations

New Canadian chancery in Dhaka openedA Review Report


exhibition by Mr AlamgirHuque, a Canadian artist ofBangladeshi origin who livesin Saskatchewan.

In addition, Mr. Obhrai metleaders of the Canada-Bangladesh Chamber ofCommerce and Industryincluding CBCCI PresidentMr Masud Rahman andvisited a major garmentfactory, 40% of whoseproduction is exported toCanada.

The ParliamentarySecretary also met with theHigh Commission staff andpresented long serviceawards to four LicensingExecutives Society (LES),Messrs Miah, Sharifullah,Solaiman and Gomes.

Mr Obhrai presented long service awards to four LES. Seen from are Mr Gomes, Mr Miah, Mr Obhrai, Mr RobertMcDougall, Mr Sharifullah and Mr Solaiman

Mr Obhrai also attending as chief guest opening of a painting exhibition by AlamgirHuque, a Canadian artist of Bangladeshi origin. Seen from left are Mr Alamgir Huque,

Mr Obhrai and Mr Robert McDougall



Canada will work together withBangladesh in strengtheningparliamentary democracy, improvingeducation system and expandingbusiness between the two countries,said Deepak Obhrai, ParliamentarySecretary to the Minister of ForeignAffairs, Canada, while talking to thethis correspondent during his maidenvisit to Bangladesh.

He expressed the views that thenational parliament election held OnDecember 29, 2008 that givesBangladesh an opportunity ofstrengthening democracy andparliament system.

He hoped the current excellentrelation between the two countries willfurther grow and Canada will continueto make its contribution to thedevelopment of Bangladesh.

Referring to the formation ofparliamentary friendship groupbetween Bangladesh and Canada,Obhrai said this would lead to moreexchanges of parliamentariansbetween the two countries and promotethe ties of the two parliaments.

He said Bangladesh-CanadaParliamentary Forum was kicked offwith State Minister for Foreign AffairsDr Hassan Mahmud as its chairmanduring his visit to Bangladesh.

"The formation of the forum pavedways for enhanced bilateral relationsunder institutional framework,"

Obhrai expressed the hope that theforum would play a crucial role formutual cooperation in anti-terrorismcampaign, development of democraticinstitutions and conservation ofenvironment apart from developingroutine bilateral ties.

Other members of the Bangladeshside in the forum were Chief WhipAbdus Shahid, lawmakers KhalidMahmud Chowdhury, MohammadShahriar Alam, Mahbub Ara Gini,

Tarana Halim, Mizanur Rahman Khanand Mahmudus Samad.

Canadian Parliamentary Secretary tothe Foreign Ministry Deepak ObhraiMP mentioned that the opposition in aparliamentary democracy has a criticalrole in making the House affective andimproving the governance.

He was also the chief guest atinaugurating of the new chancery ofthe Canadian High Commission inBaridhara. The impressive architectureof the chancery building has beenconstructed at a cost of 2.5 millionCanadian dollars over a period of nineyears.

Obhrai also mentioned thatBangladesh is one of 20 partnercountries for the CanadianInternational Development Agencyand primary heath and education arewill priorities.

On trade and investment, he urgedthe Bangladeshi entrepreneurs toexpand the trade volume with theNorth American country by tappingfull potentials of the local businesses.

He also informed the correspondentthat he would inform the Canadianinvestors about congenial businessmenenvironment prevailing in Bangladeshand urged them to invest in differentlucrative sectors.

He however, said ForeignInvestment Promotion Act (FIPA) isimportant to protect the interest ofinvestors.

He also mentioned that he wouldpursue Canadian government and itsinvestors to invest in Bangladesh'spromising sectors including power,energy, textile, garments, foodprocessing and packaging, IT andpublic services as presently a verycongenial investment atmosphere ispersisting here.

The volume of bilateral tradebetween the two countries reached$956 million in 2008, of whichBangladesh exported goods worth$642 million and imported goodsworth $314 million.

The current trade patterns showheavy dependence on readymadegarments (almost 95 per cent) amongBangladesh exports, with smallerquantities of seafood and handicrafts.

He said that Canada's traderelationship with Bangladesh hasgrown in the last couple of years andwill grow steadily in the future.

The value of bilateral trade hasincreased almost 60 per cent from $600 million in 2004 to $ 956 million in2008.

Canadian exports to Bangladeshinclude steel, iron, machinery,electronic items, certain types of rootsand tubers, cereals, legumes andoilseeds, he added.

Of the total exportable items fromBangladesh to Canada, a duty-freemarket for the country since 2003, 95per cent include garment items.

"Bangladesh's success in garmentand textile exports should spread toother sectors in Canada," he said

He said garment, agro-commodities,communication equipment, metals,

Canada-Bangladesh ties to grow Deepak Obhrai, Parliamentary Secretary to the

Minister of Foreign Affairs, Canada, talks toImtiaz Ahmed Rumi of The News Today




pulp and paper, and CNG equipmentare now being traded both the ways.

The bilateral trade between Canadaand Bangladesh is expected to crossone billion US dollars this year despiteeconomic recession with low-endBangladeshi products particularlyreadymade garments are in highdemand in the G8 country, said DeepakObhrai, Parliamentary Secretary to theMinister of Foreign Affairs, Canada.

Referring Canada as the 6th largestbilateral donor to Bangladesh in termsof total aid disbursement he saidvaluable contributions were made byCanada through CIDA in thedevelopment strides of Bangladesh.

He hoped that the trade andinvestment cooperation would befurther expanded between the twocountries in the coming years as wellas the Canadian government wouldundertake more development projectsin Bangladesh through CIDA and otheragencies.

Laying emphasis on regional tradeamong the member-counties of SouthAsia, Deepak Obhrai expressed theview that consumers of the region willbe immensely befitted throughincreased trade and investment.

The United States and Canadaconduct the world's largest bilateraltrade relationship, with totalmerchandise trade (exports andimports) exceeding $596.9 billion in2008.

The US-Canadian relationshiprevolves around the themes ofintegration and asymmetry: integrationfrom successive trade liberalizationfrom the US-Canada Auto Pact of 1965leading to North American Free TradeAgreement (NAFTA), and asymmetryresulting from Canadian dependenceon the US market and from thedisparate size of the two economies.

Deepak Obhrai said now the bilateraltrade between Canada and the USA isnearly 1.2 billion US dollars per day,which is increasing at regular interval.

Implementation of the NorthAmerican Free Trade Agreement(NAFTA) began on January 1, 1994.This agreement will remove most

barriers to trade and investment amongthe United States, Canada, andMexico.

While avoiding a direct comment onthe proposed Tipaimukh Dam, he saidIndia and Bangladesh--- the twoneighbouring countries in South Asia--will solve the issue through mutualdiscussion

"Though the global recession hasjolted the immigration process slightly,nearly 250,000 immigrants areexpected to enter Canada this year. Thenumber of immigrants will rise peryear again as soon as the economy ofthe country gets on the track," saidDeepak Obhrai.

He also mentioned that Canadarequires skilled manpower to run itseconomy, as the country is one of thelargest economies in the world, saidDeepak Obhrai, adding Bangladeshiprofessionals have enormouspotentials to work in different sectors.

"Our government believes thatimmigration plays an important role inbuilding our communities and growingour economy," said Deepak Obhrai,also a Member of Parliament forCalgary East Parliamentary.

Expressing concern over globalwarming, he said that the world leadersin the next Copenhagen meeting onclimate change, scheduled to be heldthis year, is expected to give a ray ofhope to inhabitants on earth byagreeing to cutting the greenhouse gasemission to a satisfactory level.

On terrorism, he said it is not uniquea problem to a particular country,rather it is global issue that countrieson earth work together to eliminate thisdisease.

During a meeting with EducationMinister Nurul Islam Nahid, he alsoassured him that Ottawa would helpDhaka modernize the traditionalmadrassha education system

Expressing satisfaction at theexisting good bilateral relationsbetween the two countries, Deepaksaid "Canada considers Bangladesh asa true friend in different internationalissues.

"Canada has always consideredBangladesh as its close friend andreliable partner. Ottawa is willing tofurther strengthen cooperation withyour country in the interests of theprogress and prosperity of our peoples"he mentioned.

Deepak Obhrai was born in Tanzaniaand attended school in three separatecontinents: in Tanzania, India and theUnited Kingdom. He graduated as anAir Traffic Controller in the UK andworked at several airports in EastAfrica. After immigrating to Canada in1977, Deepak worked in theaccounting department for the City ofCalgary before becoming self-employed. He and his wife Neenabecame owners of a chain of dry-cleaning stores and also formed acompany to explore joint ventureopportunities in overseas markets.

In Canada, Deepak became heavilyinvolved in his community, acting asPresident of the India - CanadaAssociation, Monterey CommunityAssociation and the Hindu Society ofCalgary. He was also Vice-President ofthe National Indo-Canadian Council.

In January 2009, the Government ofIndia recognized Deepak for hiscontribution in strengthening Canada-India relations by awarding him theprestigious Pravasi Bharatiya Sammanaward, which is the highest honourgiven to overseas Indians. In 2008,India Abroad newspaper namedDeepak as one of 35 most influentialIndo-Canadians in Canada.

Closer to home, In 2006, inrecognition of his contributions to theIndo-Canadian community and thepositive role he has played over thepast 25 years in strengthening tiesbetween Canada and South Asia,Deepak was honoured with twoawards; one from the Indo-CanadaChamber of Commerce OttawaBusiness Council and one from theNational Indo-Canadian Council. InDecember 2006, Deepak's formerschool, Daly College in Indore, India,awarded him the prestigious PadmaShri RN Zutshi Medal for outstandingachievement by an Old Dalian.



Parliamentary Secretary to theCanadian Ministry of Foreign AffairsDeepak Obhrai has praised acumen andexpertise of Bangladeshi businesscommunity in taking full advantage ofduty-free access of Bangladeshi goodsgranted by Canada.

He especially pointed to the successstory of Bangladesh's garment industry inthis regard.

He was speaking at a luncheon meetinghosted by the Canadian HighCommission with Canada BangladeshChamber of Commerce and Industry(CBCCI) members and Canadianbusiness community of Bangladeshrecently at Canadian Club, Dhaka, says apress release.

Canadian High Commissioner RobertMcDougall was also present in themeeting.

Deepak Obhrai had worked for givingduty-free access of goods of leastdeveloped countries includingBangladesh in Canada.

The Parliamentary Secretary said,during his talks with Commerce MinisterFaruk Khan, he stressed the need forbilateral talks on FIPA (ForeignInvestment Protection Agreement). Thisagreement would provide confidence toinvestors in Canada and Bangladesh as itwould ensure a strong transparent andregulatory regime for investors, DeepakObhrai opined.

Deepak Obhrai said, the CommerceMinister also termed FIPA as a good stepand hoped, together they would pursuethis avenue.

He also said the large Bangladeshicommunity in Canada could play a keyrole in enhancing trade between the twocountries.

The Parliamentary Secretary said theBangladesh business community has anexcellent record of seizing opportunity asthe garment industry did. He also visitedone large garment factory and spinningmill belonging to a member of Canada

Bangladesh Chamber of Commerce alongwith Canadian Ambassador Mr. RobertMcDougall and was very impressed."Law makers can provide a friendlybusiness environment but thebusinessmen are the ones who can makeit a success" said Parliamentary Secretary.

Speaking on the occasion, CanadaBangladesh Chamber of Commerce andIndustry President Masud Rahmanoffered the CBCCI's services if Canadafinally decides to help Bangladeshdiversify its products. If needed, CBCCIcan open a separate cell to facilitate sucha transfer of Canadian know-how in thisregard, Masud Rahman suggested.

Masud Rahman said, businessorganizations such as the CBCCI havemade progress in further developing theseties. The CBCCI has been particularlyeffective in researching new markets forinvestment, leading trade delegationsfrom Canada to meet with governmentand business officials and ultimatelyhelping businesses taking full advantageof the existing duty free access forBangladesh products in Canada.

Masud Rahman said, CIDA will takecare of anticipated effects of climatechange in Bangladesh, impact assessment

and measures for disaster risk and climatechange adaptation. Canada's recentcontribution to the World Bank globalfund for climate change, which is slatedto target Bangladesh as a priority country,will complement these efforts, he felt.

Masud Rahman strongly pleaded forCIDA help to Bangladesh in undertakinggreen projects so as to mitigate climatechange fallout.

CBCCI also sought Canadianassistance in easing power and watercrises in Bangladesh. Canada can transferits nuclear power expertise to Bangladeshfor production of cheaper and sustainableelectricity, a vital input for fastereconomic growth, Masud Rahman said.

Masud Rahman said, CBCCI Review istrying its best to fill up the informationgap between Canada and Bangladesh.CBCCI is now venturing to make it moreinformative and a useful guide for allsections of Bangladeshis and Canadians.

Later, CBCCI made Deepak Obhrai anhonorary member of the chamber andpresented him a certificate.

Vice President of CBCCI John DouglasHearns also spoke in the meeting.

Canada praises acumen ofBangladeshi businessmen

A Review Report

CBCCI President Mr Masud Rahman (2nd from left) handing over honorarycertificate of CBCCI membership to Parliamentary Secretary to the Canadian

Minister of Foreign Affairs Mr Deepak Obhrai (middle). CBCCI Vice PresidentMr John Douglas Hearns ( 2nd from right), High Commissioner of Canada MrRobert McDougall (extreme right) and CBCCI Secretary General Wali Sattar

(extreme left) were also present on the occasion.



Bangladesh Railway (BR) andCanarail Consultants Inc of Canada havesigned a consultancy agreement under arailway development project to improvethe quality of Dhaka-Chittagong railwayservice.

Emdadul Haque, general manager ofDhaka-Chittagong RailwayDevelopment Project, and Terence MarieTrottier of Canarail Consultants Incsigned the agreement on behalf of theirrespective sides at the Rail Bhaban inDhaka city.

Communication Minister Syed AbulHossain was present on the occasion.

Japan Bank of InternationalCooperation (JBIC) will provide Tk778.07 crore as project aid for Tk 1150crore Dhaka-Chittagong RailwayDevelopment Project while Tk 371.93crore will be funded by the government.

The project has five componentsincluding doubling of tracks betweenLaksam and Chinki Astana,improvement of Pahartali railwayworkshop, remodeling of Chittagongstation yard, procurement of locomotivesand skill development programme.

The consultancy service has beenestimated at Tk 127.90 crore.

Canada-based consultancy firmCanarail Consultants in joint venturewith SMEC International Ltd ofAustralia and DB International GmBH ofGermany will accomplish theconsultancy tasks of survey, design anddrawing for the project.

ACE Consultants Limited ofBangladesh and Dainichi of Japan willact as sub-consultants.

Speaking at the signing ceremony, thecommunication minister said thegovernment would make all-out effortsto infuse dynamism in railway services.

"We are working for bringingdynamism in the railway which wasmissing during the previous years," headded.

Replying to a question, the ministersaid construction work will be awardedthrough international tender.

He told the journalists that thegovernment has massive plans toimprove the railway sector includingopening of Chittagong-Cox's Bazar

railway line to connect the country withTrans-Asian Railway.

About the Padma Bridge, AbulHossain said the government would keepthe railway connectivity over the bridgeso that the rail line could be extended toBarisal and Mongla seaport.

"We will request the Jica, ADB andWorld Bank to provide financialassistance for the project," he added.

Replying to another question, he saidthe government has also a plan to buildPadma Bridge II connecting Paturia inManikganj with Gopalganj.

Apparel exports toCanada rise

A Review report

Bangladesh's readymade garmentexports to Canada grew by more than 30per cent, year-on-year, in the first quarterof 2009, thanks to flexible duty-freeaccess for the Bangladeshi goods to thenorth American country.

Quoting the latest Canadian officialdata, a Bangladesh GarmentManufacturers and ExportersAssociation official said, apparelshipments from Bangladesh to Canadawas $160.4 million in January-March2009.

After EU and US, Canada is the majormarket for Bangladeshi garmentexporters.

The BGMEA official said Canadaimported around $8 billion apparel in2008 from different countries includingBangladesh, but the demand declineddue to less consumer spending.

He, however, said more price-cautiousCanadian importers came to Bangladeshisuppliers for cheaper consignments.

Canadian envoy callson Telcom Minister

A Review report

Canadian High Commissioner RobertP McDougall paid courtesy call on Post

and Telecommunications MinisterRaziuddin Ahmed Razu at his office inDhaka.

During his meeting with the minister,the envoy discussed different aspects ofthe telecommunication sector inBangladesh, an official handout said.

Referring to various programmesundertaken for the telecommunicationssector to build digital Bangladesh aspledged by Prime Minister SheikhHasina, the minister said the presentgovernment has started its journey forimplementing its Vission-2021.

Robert praised the programmesundertaken by the present government inthe telecommunications sector.

Raziuddin Ahmed Razu told the envoythat a favourable investment-friendlyenvironment is now prevailing inBangladesh.

Post and TelecommunicationsSecretary Sunil Kanti Bose andconcerned high officials were alsopresent on the occasion.

Canada opens doors tointernational studentsAs a result of an aging population

and an extremely low birth rate, thegovernment of Canada has recentlychanged its immigration policy byplacing those who are applying forstudy permits ahead of those applyingfor permanent residence from theirhome countries.

This was stated by Mark Coote,international manager for South Asiafor Centennial College, Toronto whichspecializes in under graduate andpostgraduate business and technologyprogrammes.

Coote said: 'The purpose of my visitto Dhaka and Chittagong was to spreadthe word that Canada is now seekingyoung, bright, educated students fromall over the world.'

–Internet

Consultancy deal with Canadian firm forDhaka-Ctg railway development

A Review report


Grameenphone has sold 3,000BlackBerry sets in Bangladesh sinceJanuary 2008, which shows slowgrowth in the high-end smartphonesegment.

However, Grameenphone officialssaid the sales figures could be

considered healthy for theBangladeshi market because of thelimitations in the purchase of aBlackBerry.

Grameenphone launchedBlackBerry in Bangladesh more than19 months ago in collaboration withCanada's Research In Motion toprovide a complete lifestyletechnology package to corporatecustomers.

BlackBerry is a line of wirelesshandheld devices introduced globallyin 1999 as a two-way pager. Thesmartphone supports push e-mail,mobile telephone, text messaging,internet faxing, web browsing andother wireless information services aswell as a multi-touch interface.

Research In Motion (RIM)manufacturers BlackBerry phones. Asof May 2009, RIM announced thenumber of BlackBerry subscribershas reached approximately 28.5million worldwide.

In Bangladesh, BlackBerry was

popularised by those who basicallywanted to constantly be in touch viaemail. Most users prefer a BlackBerryfor its 24-hour push mail service.

However, easy purchase optionsand an availability of othersmartphones such as iPhone 3G andNokia N series hinder the growth ofBlackBerry sales in Bangladesh.

The BlackBerry service is onlyavailable to subscribers throughspecial licenses and is sold at only 20Grameenphone centres across thecountry, said a high official ofGrameenphone.

"As it is an exclusive service forhigh-end corporate customers, thenumber of BlackBerry subscribershas grown slowly. But even then,

intake has exceeded expectations ofthe company," said the official.

Ahmed Ali Shah, managing directorfor OCC (origination and clientcoverage) and wholesale banking ofStandard Chartered Bank, said hehooked up his office work through his

BlackBerry and is able to check hisemail, no matter where he is.

"I prefer using a BlackBerry as Ihave to maintain security in checkingmy official email. And here, theBlackBerry is unique," Shah said.

Mazhar Islam, managing director ofDragon Fertiliser Bangladesh Ltd,uses a BlackBerry smartphone toremain available to his businesscolleagues 24 hours a day.

"There is no alternative to theBlackBerry to be connected to theinternet 24/7," said Islam.

He said the BlackBerry can be usedas an alternative to a computer, but ithas some limitations, like a lowcapacity to attach photos or videos.

BlackBerry sales rise in Bangladesh Canada Bangladesh bilateral relations


The apparelindustry inB a n g l a d e s hmarked itsbeginning in the1970s and becamea major exportearning sector by

1985 accounting 13% of Bangladesh'stotal exports. In fiscal year 2008-09 ourapparel exports amounted to US$12.35 billion which is 80% of thenational foreign export earning andcontributing 12% to the country's GDP.The momentum in Bangladesh's exporttrade has been single handedlydominated by RMG industry atpresent.

During the last one and a halfdecades (1991-2007), Bangladesh hasincreasingly become integrated into theglobal economy. The manufacturingsector's share in GDP stood at morethan 17% in FY 2007-08. The AID-GDP ratio of the country started todecline as soon as the Export-GDPratio started to increase, visibledifference is there since FY 1993-94when the Aid-GDP ratio was 4.6 andExport-GDP ratio was 7.49, and theseratios were recorded as 2.61 and 13.55respectively in FY 2007-08. Theincreasing trend of Export-GDP ratioof Bangladesh is mainly fueled byRMG exports growth. The success ofthe RMG industry alongside theoverall economy's steady growth hasbeen dubbed as an example of anexport-led growth strategy of thecountry's economy. RMG sector hasbeen exerting probably the mostfavorable effect on the wages ofunskilled women workers. Wageemployment of so many femaleworkers (2.64 million) may not havebeen possible by any other sector of theeconomy. On such ground the RMGsector is positively contributing topoverty alleviation, especially factors

like increasing nutritionalexpenditures, increase in primaryeducation, and decline in womenmortality and fertility rate are seen asthe consequences propelling theeconomy to achieve the MillenniumDevelopment Goals.

Bangladesh with almost 30 years ofexperience in the garment industry

have proved to be a stronger player inthe world apparel market and havebeen branded among the best qualityRMG producers in the world. Canadais strategically a very important marketfor Bangladesh especially sinceCanada has adopted the Market AccessInitiative for Least DevelopedCountries in January 2003 which wasspearheaded by Mr. Mac Harb by hisunconditional support for passing theDFQF bill in the Canada Parliament. Itwas the first country granting duty freeand quota free access in favor ofBangladesh and other LDCs as well. Itis worth to mention here that as soon asthe duty and quota free regime forLDCs was enacted by Canada,

Bangladesh's export value doubledfrom USD $86.25 million to USD$212.57 million from 2002 to 2003. In2008 Bangladesh exported US$ 528.96million which is 19.69% higher than2007 which was US$ 441.92 million.Bangladesh's apparel export to Canadahas almost quadrupled over the last sixyears.

Bangladesh is the second largestapparel exporting country to Canadajust after China, but Bangladesh'sapparel is only 7.11% of totalCanadian apparel imports where asChina secures 53.27%. So thoughBangladesh has incentives andaccesses to Canadian market it ismostly unutilized. Rigorous stepshave to be taken to further developthe market in Canada and increasebi-lateral trade.

The role of Canada in investmentand development cooperation inBangladesh is significant. Canada isone of the largest investor inBangladesh with an invested amountUS$ 287.7 million since 1971. In

Vast Canadian market forRMG still unutilized

By Faruque HassanVice President,

Bangladesh Garments Manufacturers and Exporters Association (BGMEA)

Table -1: Canada's Apparel Import from MajorSources (in Million US$)61+62 (Knit & Woven)

Exportersvalue in USD million '08 &'07 2008

2006 2007 2008 Growth% % of totalWorld 6155.13 6908.42 7441.66 7.72 100China 3030.38 3648.93 3964.43 8.65 53.27Bangladesh 427.75 441.92 528.96 19.69 7.11USA 400.67 397.57 444.40 11.78 5.97Cambodia 266.53 292.62 343.00 17.22 4.61India 339.47 326.26 311.05 -4.66 4.18Mexico 209.25 232.35 242.43 4.34 3.26Viet Nam 123.31 154.75 214.75 38.77 2.89Indonesia 131.48 151.03 155.68 3.08 2.09Italy 97.49 123.66 128.00 3.51 1.72Source: International Trade Centre



In the last decades the labor-intensivetextiles and clothing sector (T&C) hasbeen one of the fastest growing segmentsof world trade. T&Cs are among the firstmanufactured products from anindustrializing economy but theirsignificance decreases as workers' wagesincrease. As a result, T&C trade relationsare dynamic: countries like Japan, Korea,Hong Kong, Malaysia and Taiwan werehighly competitive in this sector, but nowBangladesh, China, India, Indonesia,Pakistan and Vietnam have taken overdue to low labour costs. Several studiesargue that even China is losing itscomparative advantage in the sector.

In this context, an importantprecondition for a sustained growth ofBangladesh's clothing sector will be itsability to respond to the changes in globalT&C supply and demand. In recognitionof this, PROGRESS, a joint project of theBangladesh Ministry of Commerce and

the German Federal Ministry forEconomic Cooperation and Development(BMZ) implemented by the DeutscheGesellschaft für Technische

Zusammenarbeit (GTZ) GmbH, hasundertaken to support the export marketdiversification of Bangladesh's RMGsector.

2008 Canada registered USD 53million worth investment proposalwith BOI. Bangladesh has been thelargest recipient of Canadianbilateral assistance which is US$ 59million per year. Today Canada isalso an emerging destination forBangladeshi skilled manpower andremittance.

Though the RMG sector has madetremendous progress over the lasttwo and half decades in trade andsocial aspects, but still there are somedeficiencies in various areas likeskills development, backwardlinkage industry, forward linkageactivities line marketing andnetworking, branding, imagebuilding and productivity.Bangladesh RMG sector is sufferingfrom a 25% shortage of skilledmanpower at this moment both atworker and mid-management level.Productivity in Bangladeshi RMGindustries is also a major concern as

far as our position in the comparativeproductivity index is concerned.Moreover, due to lack of properinstitutional supports, the industry isnot getting enough fashion designingand merchandising professionals tofill up the position which is creatinga major bottleneck for the sector tomove-up to a higher end market. Thegovernment of Canada can providetechnical and financial assistance toovercome these obstacles to increaseour competitiveness. Furthermore,lack of proper publicity andpropaganda is another major problemfor effective marketing of ourproducts. Therefore, the governmentof Canada could extend assistance inthe following areas -

Investment in the primary textilesector particularly in the woventextile sector where we have ahuge shortfall despite of having abig market driven by the exportoriented RMG industry.

Setting-up fashion institutes todevelop professional for the RMGindustry. Exchange of technology andtechnical know-how forproductivity enhancement. Organize trade fairs abroad tocreate and expand businessnetwork and to raise awareness tobuild the sector and countryimage.

The RMG industry has brought asilent revolution in the socio-economy of Bangladesh. Thoughglobalization has created ampleopportunity for our country, a longdistance is yet to be covered formeeting the economic requirementsto fully exploit the opportunities ofglobalization, where the governmentof Canada could prioritize its focusfor sustainable development inBangladesh.

Diversifying RMG export market of Bangladesh

By Juliana Stoyanova


A partial view of a garment factory in Dhaka


Canada Bangladesh bilateral relationsWhy diversify?

Several cross country studies haveshown that greater diversification iscorrelated with more rapid growth of percapita income1. Diversification makescountries less vulnerable to trade shocksby stabilizing their export revenues. Italso has spillover effects in the economy -it creates learning opportunities that leadto new forms of comparative advantage.

Countries diversify by increasing thenumber of trade partners they have(breadth), and/or by exporting newproducts to old markets (depth). Whiledeepening relationships with existingmarkets is key for export growth,geographical diversification is found to beof great significance for low incomecountries such as Bangladesh - forexample the East Asian Tigers achievedwell over 300% gains in this area between1974 and 2003. More recent analysissuggests that the opportunities for manycountries to further exploit geographicaldiversification are enormous.

Why Bangladesh's RMG sector

Bangladesh's US$9 billion RMGindustry is export-driven and already themajor source of national foreign exchangeearnings. PROGRESS is aiming to helpimprove its access to new markets mainlybecause the sector under-utilizes existingexport opportunities. As shown in Table 1,Bangladesh's RMG is over-dependent ona limited number of markets in NorthAmerica and Europe. Exports to the restof the world are negligible and increasingat a very slow pace.

Moreover, Bangladesh' RMG dependson a limited number of export products.According to ITC indicators measuring

the export performance of the clothingsector in 184 countries, Bangladesh lagsbehind major competitors such as Chinaand Viet Nam in terms of productdiversification. According to ITC'srelative unit value indicator, apparelexports from Bangladesh are also belowthe world average unit value, whichreflects the dominance of low qualityapparel exports from the country.

In today's severe global economicdownturn, such commodity and marketdependence increases the country'svulnerability to industry-specific externalshocks. Furthermore, PROGRESS'support to diversification has implicationsbeyond the RMG sector: it is expectedthat the accumulated market knowledgewill facilitate future entry of new productsand players and will create employmentopportunities for the poor.

The way forward

In 2007 Bangladesh's share in worldRMG exports was 3.46% for knittedapparel and 3.05% for woven articles4.The dynamic nature of the global T&Ctrade flows opens up potential forBangladesh to expand its export marketmargin.

However, differences in current marketpenetration call for differentdiversification strategies. Here we outlinetwo main scenarios, the one associatedwith established markets like Canada andthe one related to new marketopportunities such as Japan.

The case of Canada: Imports fromBangladesh to Canada have achieved aspectacular growth since Canada'selimination of duties and quotas in 2003on most apparel made in LDCs. WithUSD$527.7 million worth of RMGexports to Canada (2008), Bangladesh is

currently its second largest garmentsupplier after China. Bangladesh's sharein Canada's total imports of knitted andwoven apparel is more than 6%.

Bangladesh-Canada's is a stable traderelationship and Bangladesh has achieveda relatively good market penetration. Inthis case deepening of the traderelationships will be achieved by productdiversification (higher value RMG andnon-RMG) and better adjustment to

Canadian market demand. Moreimportantly, improved RMG exportperformance will require some combinationof productivity improvements (to lowercosts) and quality improvements (todifferentiate products). This is an importantroute to higher growth - for instance, Chinais found to export advanced high-productivity products that are normallyassociated with countries that have percapita incomes three times higher than it.

In this context, PROGRESS works withthe leading industry associations invarious demonstration projects to helptheir members enhance productivity andefficiency. A pilot industrial engineeringproject including ten RMG factoriesachieved productivity gains between 20and 35%. Another one introducing 'LeanProduction' found that in monetary terms,the US$3 cost of RMG manufacturingcontains up to US$2.40 related to waste.The associations are now rolling out theinitiatives to their member factories.

The case of Japan: As mentionedabove, the ability of Bangladesh's RMGsector to establish and deepen exportrelationships beyond the EU and NorthAmerica needs to be improved. Withknitted and woven apparel imports worthUS$22,598 million (2007), Japan is thefourth largest clothing importer in theworld. RMG imports originating from

TABLE 1

61: Articles of apparel, accessories, knit or crochet 62: Articles of apparel, accessories, not knit or crochet

YearNo oftrade

partners

Export share % No oftrade

partners

Export share %YearEU25 USA Canada World* EU25 USA Canada World*

2004 100 77.8 13.9 3.5 4.8 99 53.5 37.1 5.2 4.1 2004

2005 106 75.6 15.6 4.3 4.5 99 45.9 44.9 4.7 4.5 2005

2006 108 75.9 14.7 4.1 5.3 102 46.9 43.9 4.1 5.1 2006

2007 101 75.4 14.7 3.8 6.1 98 45.2 44.2 4.2 6.4 2007

*More than 70 countries.


Bangladesh are tariff-free, yetBangladesh's share of Japan's imports in2007 is only 0.07% for knitted appareland 0.2% for woven clothing. The scopefor deepening of the trade relationshipand for product diversification issignificant, as shown on Figure 1.

Bangladesh's weak performance in newmarket penetration is related to

insufficient knowledge about consumerpreferences, business opportunities,quality and technical requirements inforeign markets. RMG exporters withrelatively low productivity and a lowprofit margin are unable to survive if theyhave inadequate information about thecosts of exporting a product to a particularmarket.

Moreover, firms in developingeconomies tend to underinvest in marketresearch, because it can benefit theircompetitors. This is the reason whyPROGRESS supports main private andpublic service providers to regularlygenerate, update, and disseminaterelevant information about new marketswith export potential.

This trend is confirmed by data about Bangladesh' export penetration in other top non-EU non-North Americanimporters of RMG globally (see table 2). Moreover, Bangladesh's RMG needs to be able to respond to theenormous changes in the structure of world demand as incomes in large emerging countries such as Brazil, China,and India grow at fast rates.

TABLE 2Product category 61: knitted apparel Product category 62: woven apparelCountry Ranking/

world importsin 2007

Total importsin 2007, US$

million

BD share, %and level ofprotection

Country Ranking/world

imports

Total importsin 2007, US$

million

BD share, %

Japan 4 10,760 £ 0,07 Japan 4 11,840 £ 0,2Switzerland 14 1,950 £ 2,5 Switzerland 12 2,840 £ 1,4

Australia 16 1,640 £ 0,5 Republic of Korea 13 2,820 £ 0,3Singapore 18 1,350 £ 1,9 Australia 17 1,730 £ 0,3

Republic of Korea 20 1,270 £ 0,08 Russian Federation 19 1,660 £ 1,3£ - duty tariff 0 - 5%; £ - duty tariff 6 - 10%; £ - duty tariff 16 - 20%



Canada Bangladesh bilateral relationsTo help correct information asymme triesin a sustainable manner, PROGRESS isenhancing the capacity of the researchcells of BKMEA and BGMEA, and theExport Promotion Bureau under theMinistry of Commerce. They in turn willsupport export market diversification ofthe RMG industry in Bangladesh.Markets we currently focus on includeJapan, Brazil, Argentina, Mexico, SouthAfrica, China and India.

Export promotion activities such ascountry image building and marketingalso have a strong impact on exports - ithas been suggested that the effectcalculated of an additional US$1 of

export promotion agencies budget indeveloping countries is around US$60 ofadditional exports. PROGRESS thereforeworks to enable associations, chambersand government agencies to providemarketing services to the industry,including development of advertising andpromotional materials, export guides,matchmaking, strategic communication,marketing plans, and event management.

However, sustainable and rapid exportgrowth in low-income countries tends tobe hampered by both market andgovernment failures. Diversification thusrequires suitable backbone services,working export support institutions, and a

conducive business regime. That is thereason why PROGRESS also supports thedevelopment of a coherent and unifiedApparel and Textile Trade Strategy. Ascurrent efforts in this area still lackadequate coordination, the programfacilitates stakeholder dialogue anddiscussion. The public sector along withleading industry associations and civilsociety actors will contribute to theformulation of the strategy.

For more information about PROGRESS,please visit www.gtz-progress.org

–The writer is Consultant of ProgressProject of GTZ

Canada is the 6th largestbilateral donor to Bangladeshin terms of totaldisbursement. CanadianInternational developmentAgency (CIDA) made avaluable contribution in thedevelopment strides of

Bangladesh & Trade Facilitation Office, Canada(TEOC) assisted in undertaking tradepromotional measures between the twocountries.

Bangladesh and Canada have beenmaintaining a good bilateral trade relation.Import and export business takes place for themutual benefit of the two countries. Bangladeshexported goods worth US $ 532.90 million toCanada in 2007-2008 and imported the goodsworth US $ 360.41 million in the same Period.

It appears from the above table that thebalance of trade position has always been infavour of Bangladesh and the volume ofexport has been increasing constantly.

Major export items from Bangladesh toCanada are woven garments, knitwear, hometextile, tents, frozen fish, cap, ceramictableware, jute manufactures, terry towel,handicrafts, footwear (leather) etc.

Major import items from Canada intoBangladesh included Base metals, Vehiclesand air crafts, Chemical Products, Vegetableproducts, prepared food stuffs, Animal orvegetable fats and oils, Mineral products,Chemical products, Plastic and articlesthereof, Textile & textile articles.

Duty free and Quota free access:Canada has provided Bangladesh duty free

& quota free market access in favor of LDC

including Bangladesh with effects from 1stJanuary, 2003. Canadian buyers can nowimport Bangladeshi including RMG whichconstitutes 90% of our export earnings withoutpaying any duty. In the mean time, our exportto Canada has increased manifold. One of thereasons may be the liberal Rules of OriginCriteria.

Initiatives taken by EPB to increase thevolume of export:

In order to consolidate our position in to theCanadian market, EPB in cooperation withBangladesh High Commission in Canadaorganized two 'Bangladesh Single CountryTrade Exhibition' in Toronto, Canada during14-16 June, 2004 and in April 29 May 02,2008. A potential export order worth US$ 5.5million was received from the participation inthe fair of 2004. In 2008, 44 reputable

companies/firms from Bangladesh took part inthe exhibition. The products displayed in theexhibition were Woven garments, Knitwear,Home textile, Terry Towel, Ceramics/Tilesproducts, Leather products, Jute goods,Handicrafts Metal products, Food items etc.

Bangladesh is now pursuing one of the mostliberalized investment regimes in order toattract foreign direct investment. In order toattract FDI, a package of incentives has alsobeen introduced by Bangladesh ExportProcessing Zones Authority (BEPZA). Anumber of well reputed companies havealready made investment in the ExportProcessing Zone (EPZ) area in Bangladesh. Itmay be mentioned that Canadian investors hasinvested US$ 287.679 million since 1971 until2008.

Canadian business community / investorsare requested to make investment in the fieldof Power Sectors, IT, Leather and Foodprocessing industry.

In order to increase trade and investmentbetween Bangladesh and Canada, thefollowing initiatives deserves considerations: a. Bangladesh may seek technical and

financial assistance from the Canadianauthority for developing our tradecapacity;

b. Canadian investors may be urged to set uptrade creating joint ventures with theircounterpart in Bangladesh.

c. Frequent Trade and Investment delegationmay be exchanged between Bangladeshand Canada Govt. and private sector. Source: Export Promotion of Bangladesh

Canada can help Bangladeshenhance trade capacity

By Md. Shahab UllahVice-Chairman,

Export Promation Bureau (EPB)

Balance of trade position betweenBangladesh and Canada is as follows:

(Value in million US $)Year Export Import Balance2001-2002 109.80 58.73 (+) 51.072002-2003 170.26 78.19 (+) 92.072003-2004 284.69 73.60 (+)211.092004-2005 335.25 61.29 (+)274.142005-2006 406.97 80.14 (+)326.832006-2007 457.21 156.24 (+)300.972007-2008 532.90 360.41 (+)172.492008-2009(July-May)

594.32


Solar power is not new toBangladesh, since 1996 companieshave tried to market solar energysystems to the public. Yet in atechnologically backward countrylike Bangladesh the idea took a fairwhile to gestate. Grameen Shaktilikes to think of itself as one of thesolar pioneers in Bangladesh, havingstarted operations in 1996 they foundthe reality of solar energy difficult todeal with. Initially people weresimply interested in how the suncould provide electricity, then slowlythat inquisitiveness turned into agenuine interest to own such asystem. The problem with suchfuturistic technology was that theexpectations almost always

outweighed what the systems couldachieve. Most thought a simplesystem could power an entirehousehold quite easily, and while thatis essentially achievable now, in themid nineties solar technology was along way from doing anythingremotely as efficient as that. But aftereverything was explained thoroughlythe main problem of solar energywas its price. The first systems werevery expensive with little or hardlyany energy being produced. So ontop of being expensive the systemsdid not provide much electricity, itwas a tough product to market andsell, yet at Grameen Shakti theyknew they had come acrosssomething special. They decided to

persevere with the product and nownearly 15 years later they have sold awhopping 230,000 solar systems allin the heart of rural Bangladesh.

The average 50-Watt system willprovide four lamps and one blackand white TV.

Dipal Chandra Barua, Managingdirector of Grameen Shakti says,"Between 1996 and 2003 weinstalled 10,000 solar systems. Whilethat may not seem like much, theywere worth their weight in gold.Selling those 10,000 systems gave usbelief that we could really providealternative energy for Bangladesh.To us those first 10,000 seemed like10 million and those people werereal pioneers." But simply being a

GREEN TECHNOLOGY: GO GREEN

A solar dream By Nader Rahman

The average 50-Watt system will provide four lamps and one black and white TV


GREEN TECHNOLOGY: GO GREEN

and in 2003 the government finallystepped in to help the fledglingindustry. That was the year theInfrastructure DevelopmentCompany of Bangladesh (IDCOL)made its first foray into financing thedesperately under financed sector. Itwas the shot in the arm that theindustry needed and since then thegrowth in solar energy has beenexponential. Barua says, "fromselling 10,000 units in eight years,we now sell 10,000 units a monthand I still don't feel like we are livingup to our potential. If the sector isgiven proper government support,then solar power could help augmentthe power supplied by the nationalgrid."

This is where the issue really startsto get tricky. Currently IDCOL hasrather strict rules that govern thefinancing of solar power. One of itsprerequisites is that the solar unitsthey finance must be provided to offgrid areas of the country, places thenational grid has yet to reach. Whilefrom a developmental point of viewthe idea seems good, if one were totake a more practical stance on theissue then it could be said thatIDCOLs prerequisites are too strictand provide no genuine reason toleave out urban areas from the powerof solar energy. There is some logicto their plan, in a country where over

60% of the population does not haveproper access to electricity in a wayit makes sense for solar energy to beforced onto those who have nothing.At least the 'advancement' ofelectricity is not leaving thembehind. But their decision is alsoshort sighted for a number ofreasons.

Solar power could help augmentthe power supplied by the nationalgrid. Currently everything exceptthe solar panel is assembled andmade in Bangladesh.

Solar energy systems are notcheap, even though they are beingprovided to villagers at rock bottomprices, a 50 Watt system which willprovide four lamps and one blackand white TV costs a fortune in ruralterms at TK 27,000. Only becauseGrameen Shakti provides their ownthree-year financing deals whichreduces the price to 36 manageablemonthly instalments are these solarsystems actually being sold. Ifpeople were asked to fork out all thecash at the time of purchase one feelsGrameen Shakti would be sellingsolar energy systems in single digits,not in the tens of thousands theycurrently are.

Basically selling expensive energysystems even if they are renewableand help rural developmet, to

villagers it just does not makecomplete sense.

What IDCOL should do is to allowthe sale of solar energy systems torural as well as urban areas, becauseat first they must create a market forthe product. Only after there issignificant demand and aftercompanies start to turn a profit fromthe business will the technologyreally start to mushroom.

The cost of solar systems is oftenout of reach of the average villager,yet possibly millions in urban areascould afford such systems. From thebusinesses point of view there wouldalso be the possibility of increasedfully paid one instalment purchases,thereby speeding up turnover andalso freeing up the money they paidfor the solar panels. With the currentfinancing schemes, it takes years fora company to make back the moneythey put into every system, in thecities with increased one instalmentpurchases companies will be able toplough back their earnings into thebusiness, thereby making them moreinterested to continue their trade.While IDCOL currently has 15partner organisations such asGrameen Shakti only a few are usingthe potential of solar energy to thefullest. Most of the companies sellwell below a thousand units a monthand with the prices they charge andthe market they are looking at, it iseasy to understand why. Immediatesteps have to be taken to bring thistechnology into the cities becausethat is where the real market lies, thatis where people can afford to paysuch prices. Only after companiesstart turning a profit will they beinterested in really pursuing thisbusiness and has yet to be achieved.With over 300,000 units installed allacross Bangladesh the programmehas been a success, yet those figurescould be doubled and trebled in just afew years if the power of solarenergy could be introduced tomodern city life.

–Courtesy The Daily Star

Solar power could help augment the power supplied by the national grid.


Canada, India poisedto resume nuclear

trade Setting aside years of mutual

recrimination Canada and India arepoised to sign a deal which willallow resumption of nuclear tradebetween the two countries.

According to Canada'sinternational trade minister the dealwill help Canadian companies tapthe lucrative Indian nuclear market.

Canada had ceased nuclear co-operation with India after it testedits first nuclear device in 1974.

Once signed, the deal will allowCanada to resume sale of nucleartechnology and materials to Indiaafter a gap of three and a halfdecades.

"We're very close to having anagreement with India related to thecivilian use of nuclear energy forthe purpose of helping them meettheir energy needs," said trademinister Stockwell Day, withoutindicating when such a deal wouldlikely be inked.

Indian diplomatic sources inOttawa have apparently indicatedthat the agreement was on the vergeof being finalised. Reports suggestthat the Canada and India may evenhave exchanged the draftagreement.

Earlier, in January this year, Dayhad announced that government-owned Atomic Energy of CanadaLtd. (AECL) had signed amemorandum of understandingwith India for the supply of next-generation nuclear reactors.

With the successful conclusion ofthe Indo-US nuclear pact theinternational community has nowlifted a three-decade ban on nucleartrade with India.

It is estimated that India maybuild or place orders for as many as25 to 30 new reactors in the comingyears. "The estimation is over thenext 20 years, something likeanywhere from CA$50 ($44) toCA$150 billion ($133 billion)worth of civil nuclear energy needsare what we're looking at," Daysaid.

A senior executive from AECLtold Canada's finance committeethat it was considering sale of itsnext-generation ACR 1000 reactorsin foreign markets. The corporationis already in agreement with aleading Indian engineering firm forthe costing of the ACR 1000s. Suchan agreement can only be a preludeto a possible sale.

Saskatchewan's Cameco Corp, isalso poised to sell uranium to Indiaand is awaiting a formal agreementbetween India and Canada in thisregard.

Canadian PM proposeshonorary citizenship

for Aga Khan Prime Minister Stephen Harper

has proposed extending honoraryCanadian citizenship to the AgaKhan, imam of the world's ShiaIsmaili Muslims.

Harper said his governmentwould seek "the consent of theHouse (of Commons) to extendhonorary citizenship to HisHighness," and urged allparliamentarians to support themotion.

The Aga Khan, Prince Karim AlHusseini, 72, is the spiritual head ofthe world's 15 million IsmailiMuslims. He is the forth suchperson to hold the post since the19th century.

Ismailis make up the world'ssecond largest Shia grouping andare spread throughout 25 countries.

"The Aga Khan, with his networkof agencies, is a great partner andlong-time friend of Canada, and agreat benefactor to humanity,"Harper said in parliament.

"He is truly a beacon ofhumanitarianism, of pluralism andof tolerance throughout the entireworld."

Only four people have ever beenextended honorary Canadiancitizenship: Myanmar pro-democracy activist and Nobellaureate Aung San Suu Kyi lastyear, and before that NelsonMandela, the Dalai Lama, and

Swedish diplomat RaoulWallenberg, who saved the lives ofthousands of Jews during theSecond World War.

Most Canadian Ismaili Muslimsarrived in Canada after being forcedout of Uganda by its former ruler IdiAmin in the 1970s. They nownumber roughly 70,000 in Canada.

Canada has partnered with theAga Khan's agencies ondevelopment projects in Asia,Africa and Afghanistan, as well asto promote ethnic, cultural andreligious tolerance.

Nokia Siemensbuys Nortel in$650m deal

Canadian telecommunicationsfirm Nortel, in bankruptcyprotection since January, will sellmost of its wireless business toNokia Siemens Networks for 650million dollars.

Nortel also announced it wasmaking headway in discussionswith other parties to sell its otherbusinesses.

Nortel will apply to delist itscommon shares from trading on theToronto Stock Exchange, thecompany said in a statement.

The agreement with Nokia alsospecifies that at least 2,500 Nortelemployees can continue workingwith the new owner.

Nortel head Mike Zafirovski saidthe value of Nortel's wirelessbusiness was recognized worldwideand the agreement with Nokiarepresented the best path forward.

"We have determined the best wayto do this is to find buyers for ourbusinesses who can carry Nortelinnovation forward, whilepreserving employment to thegreatest extent possible," he said.

"This will ensure Nortel's strongassets -- technologies, customerrelationships, and employees --continue to play an important role indriving the future ofcommunications.

Canada abroad


Educational opportunities in Canada

Education in Canada is under thecomplete jurisdiction of the provincesand territories and as such, there is nofederal education system in Canada. Inkeeping with the national commitmentto education, public education inCanada is free upto and includingsecondary school in all the provinces.

However, each provincial system,while similar to the others, reflects itsspecific regional concerns, andhistorical and cultural heritage. At thepost-secondary level, institutions aredivided into community colleges anduniversities.

There are significant differencesbetween the education systems of thedifferent provinces of Canada.Secondary schooling in Canada couldgo up to Grade 11, 12 or 13, dependingon the province unlike in India, whereGrade 12 is standard all over thecountry.

Post secondary education isoffered by four types of educational institutions:

Universities University Colleges Community Colleges / TechnicalInstitutes Career Colleges

Universities: Canadian universitiesare largely public funded, and, as aresult, offer consistently high qualityeducation at lower tuition rates forinternational students than theircounterparts in competing countries.They offer a broad range of courses anddegrees from undergraduate todoctorate and also certificate andprofessional degrees.

University Colleges: As acomponent of the Canadian universitysystem, university colleges offerstudents a choice of either academicoriented university degree programmesor the more practical-oriented collegediplomas and certificates. As a part ofthe Canadian college system, universitycolleges are distinguished by theirstrong student support services, smallclasses and strong campus

environments. They also offercombined degree/diploma programmesand university transfer programmes.

Community colleges and technicalinstitutes: They typically have a morevocational-related curricula, with smallclasses, off-campus course offerings, agreater ratio of laboratory space to classroom space, and an interactive teachingstyle. The uniqueness of Canadiancolleges lies in the combination ofemployer-centered curricula. Theseinstitutes have the primary function ofresponding to the training needs ofbusiness, industry, and public servicesectors. Most colleges and technicalinstitutes offer diplomas and certificatesrather than degrees, however, more andmore now grant degrees and applieddegrees.

Technical/ Career College: This is aprivately owned and operated schoolwith the main objective of preparingstudents for the job market after a shortperiod of instruction. The emphasis atcareer colleges is on practical skillsover a broad range of programmes.They specialize in such areas asbusiness, computers, and secretarialskills. Although privately owned, theseinstitutes are provincially approved andregulated, ensuring that programmesstandards and quality are maintained.

The academic year usually starts inSeptember and ends in May, and isnormally divided into two semesters.Some institutes operate on a semester ortrimester system and admit students inJanuary and/or May as well asSeptember. Many institutes offer alimited number of courses and specialprogrammes during the summersession.

Type of Certification Certificate is a qualification awarded

upon successful completion of aprogramme which is usually one year inlength, and is offered at colleges.

Diploma is the qualification awardedon the basis of one or two year'ssuccessful study, and is offered atcolleges.

Undergraduate/bachelors degrees areawarded by a university after four yearsof full-time study, and lead to graduatelevel studies.

Graduate/post graduate degrees leadto advanced degrees, diplomas andcertificates. A pre-requisite toparticipate in graduate studies is abachelors/undergraduate degree (4years).

M.B.A. programmes will typicallyrequire a minimum of two to three yearsof relevant work experience, GMATscore of 580-600, TOEFL score of 560-600, and a 4 year degree, and aregenerally 2 years in duration, though afew institutes offer a fast track option.

Pre-requisites to participating in amaster's programme is a four yearbachelor's degree with high academicstanding equivalent to a minimum mid-B grade in Canada (mid 70's); at leasttwo academic letters of reference; andother qualifications as specified, ie.,TOEFL, GRE general and/or subjecttest. Master's programmes generallyrequire two years to complete full time,and usually require a combination ofcourse work and thesis.

Doctorate or Ph.D. is a degreeranking above a master's degree, andgenerally requires four to seven years tocomplete full time. A combination ofcourse work, original research, and athesis is required. Prerequisites aretypically a master's degree, althoughdirect entry from a bachelor's degree toa Ph.D. programme may be possibledepending on the school andprogramme. Minimum high-B grade inCanada (high 70's) is required; whererelevant, demonstrated researchcompetence equivalent to at least a B+grade; at least two academic letters ofreference; and other qualifications asspecified, ie., TOEFL, GRE general andor subject test.

Post-doctoral programmes are muchmore specialized, research orientedprogrammes. One of the most importantfactors in granting post-doctoratefellowships is the personal networkestablished between the interestedapplicant and the faculty memberwithin the institution.

Education system in Canada A Review report

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