Bangladesh may get reduced tariffs on exports to USA: Finance adviser
Negotiations with the USA are still on for the tariff lowering, he says
Finance Adviser Dr Salehuddin Ahmed has expressed hopes that Bangladesh will get a reduced tariff rate for exporting products to the USA.
"We are hoping the tariff will be lowered for us," he said while emerging from the weekly meeting of the Advisory Council Committee on Government Purchase (ACCGP) held at the Bangladesh Secretariat today (23 July).
Bangladesh will import some other essential items from the USA, he said, adding, "We will import some other essential items, but will not divulge the items names right now."
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The adviser also said Bangladesh's trade deficit with the USA is very low, like $6.5-6.7 billion.
Talking about the decision to import wheat from the USA, he said the government wants to rationalise the sourcing of wheat as part of increasing trade volume with the USA. "We have experienced uncertainty from the Russian and Ukraine blocks from where we usually bought wheat, there are problems in the black sea."
He mentioned that negotiations with the USA are still on for the tariff lowering.
Regarding the price of wheat import from the USA market, Salehuddin denied making any comment.
He, however, admitted the price hike for this wheat import from the USA market. "But we will get some advantages and we need to import something for negotiation."
Salehuddin also mentioned that this import will be helpful to reduce the trade deficit.
The finance adviser said the commerce adviser will go to the USA shortly before 1 August, the day to impose enhanced tariff rates for Bangladesh. "He will have meetings with the USTR; I am also talking through my channel."
Salehuddin said engaging lobbyists would not bring any positive result at this stage when the decisions are coming out very quickly.
Responding to a query to engage business people for this negotiation, Dr Salehuddin said that the business people will not get access in negotiation meetings. "They will have to make noise outside the meeting, that will not make any difference," he added.
The adviser mentioned that it is true that the US private sector is very much important. "I have talked to the US Chamber, they have a good impression of Bangladesh," he said.
US President Donald Trump on 7 July sent a letter to Chief Adviser Prof Muhammad Yunus imposing a tariff of 35% on products imported from Bangladesh.
In his letter, Trump cited a 'longstanding and very persistent' trade deficit between the two countries.
Trump's new 35% tariff announced for Bangladesh is 2% lower than the initial rate announced three months ago, but significantly higher than its close rival Vietnam (in the field of RMG), which recently secured a trade deal with the US under which its goods will be charged a tariff of 20%.
