Union of South American Nations (USAN) : Opportunities For Bangladesh
Union of South American Nations (USAN) : Opportunities For Bangladesh
Union of South American Nations (USAN) : Opportunities For Bangladesh
Nations (USAN)
Opportunities for Bangladesh
Submitted to
Dr. Syed Ferhat Anwar
Course Instructor: M607 International Marketing
EMBA Program
Submitted by
Name
Roll
Batch
Tanvir Ahsan Siddique
ZR1501007
Pavel
Md. Tanvir Nayem
ZR1501008
Maruf Uz Zaman
ZR1501010
21st
21st
21st
Introduction:
The Bank of the South will finance economic development projects to improve local competitiveness and
to promote the scientific and technological development of the member states. Its founding charter
affirms that the bank will promote projects in a "stable and equal" manner and priorities will be oriented
towards reinforcing South American integration, reducing asymmetries, and promoting an egalitarian
distribution of investments.
The Brazilian Minister, Guido Mantega, stated that the bank is not similar to the International Monetary
Fund; it will be a credit institution similar to the World Bank.
Defense policy:
The South American Defense Council (CDS) was proposed by Venezuela and Brazil to serve as a
mechanism for regional security, promoting military co-operation and regional defense. From the
beginning Brazil, Argentina and Chile, the countries that took the leadership of the project, made clear
that they did not intend to form a NATO-like alliance, but a cooperative security arrangement, enhancing
multilateral military cooperation, promoting confidence and security building measures and fostering
defense industry exchange. Colombia initially refused to join the defense council due to the strong
military ties it has with the United States through the Plan Colombia. However, after reviewing the
proposal they decided to join on 20 July 2008.
Shortly following the signing by Colombia's President, President of Chile Michelle Bachelet appointed a
working group to investigate and draft a plan for the new council. Finally, on 10 March 2009, the 12
nation members held, in Chile, the first meeting of the newly formed council. [31]
In mid-2010, UNASUR played a key role in mediating the 2010 ColombiaVenezuela diplomatic crisis.
On 1 September 2010, the agency "UnasurHait" was created to provide US$100 million in help to Haiti.
Infrastructure cooperation
There is an Initiative for Infrastructure Integration of South America (IIRSA) underway, which has
received the support of the Inter-American Development Bank and the Development Bank of Latin
America.
UNASUR started plans of integration through infrastructure cooperation with the construction of
the Interoceanic Highway, a road that intends to more firmly link the Pacific Coast countries,
especially Chile and Peru with Brazil and Argentina by extending highways through the continent,
allowing better connections to ports from Bolivia and the inner parts of Argentina, Peru, and Brazil. The
first corridor, between Peru and Brazil, began construction in September 2005, financed 60% by Brazil
and 40% by Peru, and was completed in December 2010.
The South American Energy Ring is intended to interconnect Argentina, Brazil, Chile, Paraguay, and
Uruguay with natural gas from several sources, such as the Camisea Gas Project in Peru and Tarija Gas
Deposits in Bolivia. Though this proposal has been signed and ratified, economic and political difficulties
in Argentina and Bolivia have delayed this initiative, and to date, this agreement remains more like a
protocol than an actual project, since Chile and Brazil are already building LNG terminals to import gas
from overseas suppliers.
Free movement of people
Visits by South American citizens to any South American independent country of up to 90 days only
require an identification document issued by the traveler's country. On 24 November 2006, Argentina,
Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru, Suriname, and Uruguay abolished
visa requirements for tourists between any of those nations.
Mercosur, along with its Associate members of Bolivia, Chile, Colombia and Ecuador established that
their territories together form an "area of free residence with the right to work" to all its citizens, with no
additional requirements other than nationality. The Free Movement and Residence Agreement was
established in the Braslia summit based in a previous document signed on 6 December 2002.
Objective:
The main objective of the report is to create sustainable relationship with the USAN trade block.
United Nation has taken some strategies under sustainable development goals they are dignity (to end
poverty), prosperity (to grow sustainable economy), justice (to promote safe and peaceful societies, strong
institutions, partnership (to promote global solidarity), planet (to protect our ecosystem) and people (to
ensure healthy life). We will approach for partnership as we are trying to set up business relation with
these countries with global solidarity.
In this project, we will focus on two goals of UN mission which are:
Overview:
We have chosen Brazil primarily to start the journey. The business relationship between Bangladesh &
Brazil properly reestablished since 2010 when the Brazilian embassy reopened in Bangladesh. Currently
Bangladesh is exporting worth of $211.7m to Brazil and Brazil is exporting worth of $1.672b to
Bangladesh. At present Bangladesh is experiencing trade deficit. From 2014 to 2015 Brazil export to
Bangladesh experienced 54% growth. We need to increase our exports to Brazil to bring in more money.
As such we can decrease our trade deficit with Brazil.
Major imports for Brazil from Bangladesh are RMG, Jute & Footwear
At present, Bangladesh is exporting mainly RMG and jute to Brazil. The current market is worth $211.7
million. We are looking for ways to increase it. We will mainly focus on the jute export. Bangladesh is
currently exporting $7.372m worth of jute as yarn and processed jute. We have the ability to meet their
extra demand regarding this sector
2007
1618
2008
3031
Year
2009
2010
392
2007
3099
2008
59
9311
2011
7372
2009
1209
2010
7221
2011
7840
Connecting
Brazil
Brazil has an internal market of 7,300 tonnes of jute & jute products
Jute sacks and other jute items are bio degradable which connects with SDG UN Mission Planetto protect our ecosystem
TRIPS patent advantage which allows Bangladesh to export generic products without any patent
fee till 2033. This was decided in Uruguay round.
Bangladesh has a big and efficient pharmaceutical industry which is continuously growing inside
and outside the local border.
Low production cost because of economies of scale
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Competitive & Comparative advantage (Apparel)
Conclusion:
South America is a big market for Bangladesh which is almost untapped till now. Bangladesh has a huge
prospect to grow business there. Bangladesh is the producer of best quality jute in the world which they
can export all over USAN. Moreover, this is biodegradable which is good for the plante. Pharmaceutical
and Apparel are yet two more industries from where Bangladesh can establish a sustainable business.
Agricultural technology arrangement of sugarcane from Brazil will help to reduce the trade deficit.
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References:
http://www.jute.org/wjp/cp_brazil.htm
http://www.dhakachamber.com/
https://www.searates.com/reference/portdistance/
https://www.cia.gov/library/publications/the-world-factbook/fields/2147.html
https://esa.un.org/unpd/wpp/Download/Standard/Population/
http://bdnews24.com/bangladesh/2013/07/24/bangladesh-brazil-bonhomie
http://newstoday.com.bd/index.php?option=details&news_id=2441576&date=2016-05-01
http://www.thedailystar.net/news-detail-199520
http://archive.dhakatribune.com/bangladesh/2015/mar/23/tofail-bangladesh-exports-medicines-107countries
https://www.albd.org/index.php/updates/news/1114-pharmaceuticals-a-rapid-growing-export-industry?
lang=en
http://bdnews24.com/business/2016/01/24/pharmaceutical-exports-from-bangladesh-rise-sharply
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