BUILD calls for swift action to address US reciprocal tariff 

The Business Initiative Leading Development (BUILD), a leading policy think tank, has called for urgent diplomatic engagement and a strategic review to mitigate the potential adverse impacts on trade, investment, and employment following the United States' imposition of reciprocal tariffs on Bangladesh.

The US move has sparked serious concerns among the private sector, who fear the new tariffs could hinder export growth, according to a press release from BUILD today (8 April).

BUILD warned that the prolonged existence of such trade barriers could deter foreign direct investment (FDI), disrupt export orders, and ultimately hamper job creation and long-term economic growth.

 Abul Kasem Khan, chairperson of BUILD, said, "The US tariff issue highlights the need to expedite reform processes and accelerate pending measures for trade facilitation."

"Immediate dialogue and remedial measures are essential to protect jobs and economic stability," he added. 

According to BUILD, private sector entrepreneurs in key export-oriented sectors, such as RMG, leather, and other sectors, have already received requests to postpone work orders, reflecting growing fears over the impact of the new tariffs.

The think tank stressed that such developments pose serious risks to Bangladesh's investment climate, especially at a time when the country is pushing for deeper integration into global trade and investment networks.

Bangladesh has launched an extensive drive for policy reforms to tackle long-standing systemic challenges and stabilise the macroeconomy. The reforms aim to increase foreign trade and boost the manufacturing sector by adjusting monetary and fiscal policies, diversifying exports, enhancing financial sector stability, and improving the overall climate for private investment, the release said.

Bangladesh is also working for trade facilitation, simplification for NOC and registration process for investment in the restricted sector, reforms in the digital law, etc, it added.

However, BUILD cautioned that the reciprocal tariffs threaten to undermine these efforts by introducing uncertainty in the investment landscape.

BUILD stressed the need for a comprehensive review of the tariff implications, involving government bodies, private sector stakeholders, and trade experts. 

The think tank has also proposed launching an advocacy effort under the WTO Trade Facilitation Agreement (TFA) to strengthen Bangladesh's negotiating position, despite the US administration's historical reluctance to fully comply with WTO norms.

In view of this, BUILD suggested that the government form a Special Committee comprising representatives and experts from both the public and private sectors to develop coordinated strategies and responses.