In an Exclusive Interview with the Executive Times Her Excellency the Dutch Ambassador to Bangladesh Berendina Maria Ten Tusscher discusses some vital aspects of the bilateral relations existing between the two sisterly nations.

The Executive Times (ET): The two countries are good friends.

Berendina Maria Ten Tusscher (BT): Netherlands was among the first countries to recognise independent Bangladesh. Relations have been very cordial ever since.

ET: Bangladesh is an LDC. What experience of yours do you think can be of great benefit to us?

BT: Bangladesh has substantial potential for further development, although it is not endowed with huge natural resources (apart from coal). My country managed to harness water, and use it productively. Bangladesh can learn and benefit from this experience.

ET: Which area do you think should Bangladesh and Netherlands work on for enhanced co-operation?

BT: We can definitely increase co-operation in the water sector. As an example I would mention that very recently BWDB and its Dutch Government counterpart RWS have signed an agreement to continue their collaboration up to 2010.

ET: Would Dutch investors be interested in relocating their industries to Bangladesh?

BT: Bangladesh is already an important sourcing country for garment buyers from Netherlands, and soon we will be buying ocean going ships from a BD shipyard too. It is not so much a matter of relocating entire industries, but it is a fact that labour-intensive production is moving out of Netherlands to countries such as Bangladesh.

ET: How do you look at the current investment climate in Bangladesh?

BT: Bangladesh (BD) currently attracts only very small FDI compared to other South/Southeast Asian countries and I think that the investment climate should improve. In a globalising world, countries are heavily competing for foreign investments. Today BD does not attract much FDI because of some uncertainties and restraints, such as the threat of labour unrest, corruption and tedious procedures for setting up new businesses. One must not forget that perceptions play a big role, and it may not be easy to change the perception that BD is a rather complicated country to invest in.

ET: Nevertheless, which sectors in Bangladesh do you think have potential for attracting investment from Netherlands?

BT: There are some investments in the garment industry and a few other export-oriented industries such as 'big bags'. The availability of certain subsidies for Dutch companies has helped a lot in taking such investment decisions. There are no investments in the agro-industry yet, but they may come in the future.

I should also point out that from our perspective investments are not always needed. What is wrong with a healthy trade relation? Stimulating foreign trade is much easier than promoting investments!

ET: Are we likely to see manpower export from Bangladesh to Netherlands?

BT: Manpower export to Netherlands or for that matter to other EU countries is not possible, I am afraid, I don't expect that to change any time soon. The EU labour market is basically reserved for its citizens, and only in special cases such as a temporary shortage of highly specialised IT personnel, are exemptions allowed. You will not see non-EU construction workers in my country.

ET: Export from Bangladesh to Netherlands is very small compared to other countries in the West. What about a Free Trade Agreement between Bangladesh and Netherlands?

BT: It is correct that export to Netherlands is small, but it is growing, and it will continue to grow with BD being a low-wage country with an increasing number of export-oriented industries. Trade promotion is absolutely required, also to change the negative perceptions that exist in some corners. Free-trade agreements with individual EU countries are not on the agenda. The EU operates as one huge trade bloc (it is the largest single market in the world!) and BD has to deal with the EU as a whole.

ET: Finally, how do you get involved in promoting cultural exchange programmes between the two nations and what kind of humanitarian assistance are you providing to Bangladesh?

BT: I have not been involved in cultural exchange programmes yet.

Regarding humanitarian assistance I would like to say that we have never let the people of BD down in times of adversity. Most recently, after SIDR, my Government has given 5.5 million EUROS in extra funds to WFP to procure food for the victims. And our Embassy has directly made a small contribution in the Patuakhali area where Dutch-funded development programmes are implemented.I have personally visited that area and noticed that things have improved since November.

The interview was taken by ET reporter Afsana Begum