US’s new visa policy: What explains the US visa ‘threat’ to Dhaka?

Source: The post is based on the article “What explains the US visa ‘threat’ to Dhaka?” published in the Indian Express on 27th May 2023

Syllabus: GS 2 – India and its neighbourhood relations.

Relevance: About US’s new visa policy.

News: A new visa policy was announced by the US “to support Bangladesh’s goal of holding free, fair and peaceful national elections.” Under this policy, the US can impose visa restrictions on individuals and their immediate family members if they are responsible for undermining the democratic election process in Bangladesh.

Note: Earlier this month, the US announced the same policy in Nigeria.

What led to the formulation of the US’s new visa policy?

This is due to a) Bangladesh Prime Minister’s authoritarian approach, b) The formulation of a draconian Digital Security Act, c) Declaring the newspaper found by the Ramon Magsaysay awardee Matiur Rahman, as anti-national, and d) the government’s crackdown on Bangladesh Nationalist Party (BNP) and former PM citing its links to Islamist parties and alleging corruption at the top.

What is the view of Bangladesh’s government and the opposition to the US’s new visa policy?

The opposition in Bangladesh said that a) The policy will play a supporting role in holding the next polls in a fair and credible manner, b) The policy will change the diplomatic ties between Bangladesh and the United States,

The government on the other hand said that the US was seeking regime change in Bangladesh and demands such visa policy should not be applied arbitrarily in a non-objective manner.

What will be the implications of the US’s new visa policy?

The US is the biggest destination for Bangladesh’s garment exports, and Bangladesh is the third-largest exporter of garments to the US after China and Vietnam. The industry is the backbone of the country’s economic growth.

A (Generalized System of Preferences) GSP-Plus status with the US and Europe for its ready-made garment exports is crucial when Bangladesh graduates out of the least developed country category in 2026. Bangladesh’s government is working hard for this tag. But the new policy might hamper its recognition.

What is the Generalized System of Preferences (GSP)?

How does the US’s new visa policy impact India’s ties with Bangladesh?

Over the last few years, the US and India were seen as acting in tandem in Bangladesh, especially as their security objectives converged. But the US position on the Bangladesh elections could complicate India’s diplomacy in Bangladesh.

This is because India prefers the present government as It a) acts swiftly on security concerns of India, b) signed land transit rights to the Northeastern states, c) provides security assurances and d) signed a favourable coal power deal to an Indian company.