Bangladesh adopts wait-and-see policy after US imposes 15% global tariff
The government would first consult domestic stakeholders before deciding on any next steps, said Commerce Secretary Mahbubur Rahman.
The Ministry of Commerce has convened a meeting with leading exporters and trade economists tomorrow to assess the impact of the United States' new 15% global tariff and coordinate a strategic response.
But officials said Dhaka will neither initiate immediate talks with Washington nor move forward with the ratification of the existing trade pact for the time being.
Commerce Secretary Mahbubur Rahman confirmed the decision to The Business Standard, adding that the government would first consult domestic stakeholders before deciding on any next steps.
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"On Wednesday (25 February), we will sit with our key stakeholders – exporters and trade-related economists – to hear their views and suggestions. Beyond that, we have no plan at the moment to engage in discussions with the United States," he said.
The secretary noted that although Bangladesh had signed a trade agreement with the US following the announcement of reciprocal tariffs, the agreement has not yet come into effect.
"We will remain quiet for now. We will not take the initiative to engage in talks with the US. Until the US ratifies the agreement and sends a notification, there is no need for discussions about complying with it."
"The agreement states that it will become effective once both countries ratify it and notify each other. Bangladesh will not ratify the agreement for now," he said.
Mahbubur said, "If the United States ratifies it and sends us a notification, then we will enter into discussions with them. At that point, we will be able to ask on what basis they ratified the agreement after the US Supreme Court scrapped the reciprocal tariff measure," he added.
The US Supreme Court recently declared the reciprocal tariff unlawful. However, under a different legal provision, Washington has since announced a 15% duty on goods from nearly all countries.
Mahbubur said Bangladesh's response would depend on how the US proceeds.
"Since we have signed the agreement, the United States will naturally want us to comply with it. We can then tell them that if a uniform 15% tariff is imposed on all countries, and Bangladesh is not given any additional benefit, why should we adhere to the agreement?" he said.
"Everything will depend on what kind of benefits they offer Bangladesh," he added.
The commerce secretary said Dhaka would adopt a wait-and-see approach. "We will remain quiet for now. We will not take the initiative to engage in talks with the United States. Until the US ratifies the agreement and sends a notification, there is no need for discussions about complying with it."
He added that if the 15% tariff is applied uniformly to all countries, Bangladesh may have limited room to respond. However, if there is scope for country-specific reductions, Dhaka would consider entering negotiations to seek a lower rate.
