Bangladesh-US two-day tariff talks begin in Washington
Proposed tariff rates for India, Pakistan, Indonesia, and China are lower than for Bangladesh
The first meeting of the second round of negotiations between the Bangladesh delegation and the United States Trade Representative (USTR) officials began in Washington, DC, at 9pm Bangladesh time today (9 July).
The meeting is aimed at finalising a draft bilateral trade agreement that could grant Bangladesh an exemption from the 35% tariff set to be imposed by the US. The discussions are expected to continue through Friday.
Present at the meeting were Commerce Adviser Sheikh Bashir Uddin, Commerce Secretary Mahbubur Rahman, and Dr Nazneen Kawshar Chowdhury, Director General of the WTO Cell at the commerce ministry. National Security Adviser Dr Khalilur Rahman joined virtually.
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Speaking to The Business Standard from Washington, DC, before the talks began, Bashir said that the issue is under careful review. He noted that the discussions with the US are not limited to tariffs, but focus broadly on bilateral trade. "We will discuss what will be best for the country," he said.
He added that the top priority is to protect national interests and that they are hopeful of achieving positive outcomes through negotiations.
Before departing for the US on Tuesday evening, Commerce Secretary Mahbubur Rahman told TBS that the US had issued a notice imposing a 35% tariff on Bangladesh and also sent documents related to a proposed agreement, set to take effect on 1 August.
The documents mention easing imports of military equipment, LNG, wheat, agricultural products, cotton, and aircraft. The US also provided annex documents related to the proposed deal.
According to a commerce ministry official, negotiations with USTR officials will continue nearly all day for the next three days until Friday.
The official said the commerce ministry is open to offering US products tariff concessions if needed and does not expect the local private sector to suffer from increased US imports.
Additionally, the government has initiated the process of purchasing Boeing aircraft from the US and has increased imports of LNG, wheat, and cotton from the country since April.
US President Donald Trump earlier announced a reduction in tariffs on garments from Bangladesh's key competitor, Vietnam, to 20%. Proposed tariff rates for India, Pakistan, Indonesia, and China are also lower than for Bangladesh.
Garment exporters warn that the high tariff on Bangladesh's exports, compared to rival countries, could significantly hurt the country's apparel exports to the US.
