The revised draft excluded the clause the US had made earlier that Dhaka and Washington will work together on different WTO issues, including preferential market access, commerce ministry sources said.

The US as a developed economy and Bangladesh, as a least-developed country (LDC) have different and sometimes conflicting positions and interests in the World Trade Organisation (WTO) and it was not possible for Bangladesh to seal the proposed deal keeping the previous clause in place, they added.

Under the proposed Tifa, Dhaka and Washington would sit once or twice a year to thrash out ways to enhance trade and investment.

The commerce ministry held an inter-ministerial meeting yesterday to discuss the revised draft with the business leaders and trade experts with Commerce Minister Amir Khosru Mahmud Chowdhury in the chair.

According to sources, business leaders vehemently opposed the incorporation of labour issues in the draft, saying in that case the US may impose sanction on Bangladeshi exports to its market. They referred to the ongoing dilemma that Dhaka is in over how to allow trade unionism in the export processing zones (EPZs).

"In fact, the revised draft is much improved than the earlier one but it still has some clauses including one on intellectual property rights that may prove harmful to the country in the long run," a ministry official said, seeking anonymity.

Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement under the WTO is not favourable at all for the LDCs, which are being pushed for necessary changes and modifications, he maintained.

So, if it is incorporated in the bilateral agreement, it will favour the US and may create serious problems for Bangladesh in future, he added.

Besides, the new draft has also excluded another important clause on environment issues and placed labour law and labour standard issue in the preamble instead of putting it in the clauses.

A high government official is likely to go to Washington next month to further discuss the proposed deal.

The US is insisting on retaining a clause in the earlier draft, which aims to protect interest of US companies in the energy sector and also the private container terminal at Chittagong Port scheduled to be built by Stevedoring Services of America. The investment part of the clause should not be included in the clause, the commerce ministry official warned.

That draft stipulates that any dispute should be resolved after reviewing it within 30 days of making complaint to the proposed US-Bangladesh Council on Trade and Investment under TIFA and no time would be extended without the consent of the complainant.

But according to the revised draft, it can be fixed mutually.

The US has proposed promotion of investment climate and expansion of trade in services. On the other hand, yesterday's meeting decided incorporating trade in goods and tariff in the revised draft.

"TIFA will be a platform for trade and investment and there is no significant difference between US and Bangladesh on the issue," the commerce minister said after yesterday's meeting.

Assistant US Trade Representative Ashley Wills visited Bangladesh in August last year and met Commerce Secretary Suhel Ahmed to discuss the proposed TIFA. Both agreed to set the joint council on trade and investment.

The council would primarily be tasked with monitoring trade and investment relations, resolving problems and identifying business opportunities and issues such as intellectual property rights, labour rights and environmental concerns.