Bangladesh needs realistic and strategic preparation in US tariff talks: Sanem
Bangladesh's export trade is poised to encounter new challenges in the wake of potential counter-tariffs from the United States, cautioned Selim Raihan, executive director of the South Asian Network on Economic Modeling (Sanem) today (20 July).
Speaking at a roundtable discussion in the capital, Raihan said, "Bangladesh's bargaining power is limited. Our preparedness and strategy in tariff-related discussions are weak, which could become economically costly in the future."
The roundtable, titled 'US Counter-Tariffs: Which Way for Bangladesh?', organised by Bangla Daily Prothom Alo, brought together economists, business leaders, and researchers from across the country.
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Raihan highlighted that Bangladesh is currently navigating a geopolitical reality where maintaining balanced diplomatic and commercial relations with China, India, and the United States is crucial.
"Our competitors, like Malaysia, are engaging stakeholders in discussions on complex issues despite being in the NDA. In contrast, Bangladesh is still largely confined to a limited mindset," he added.
He further noted that the World Trade Organization (WTO) has become virtually ineffective. Many powerful countries, including the US, are now more focused on bilateral negotiations to serve their own interests. In this reality, adopting a strategic trade policy has become critically important for Bangladesh.
The economist warned that Bangladesh's export-dependent sectors to the US, especially garments, leather, and leather products, could be directly pushed out of competition if the new tariff rates come into effect.
"The proposed 35% counter-tariff is alarming for us. Such tariff pressure will not only impact trade but also pose a significant threat to employment, foreign exchange earnings, and the survival of industries," he stated.
He stressed that it is time for realistic and strategic preparation. Moving beyond sole reliance on the WTO, Bangladesh must establish a strong position in bilateral discussions, incorporating product-specific and sector-specific plans.
