Dhaka in last-ditch bid as tariff talks with US begins in Washington

Bangladesh has entered a critical phase of negotiations with the United States in a last-ditch effort to reduce the newly imposed 35% reciprocal tariff on its exports. 

The high-stakes talks, which began at 10:30pm Bangladesh time today, are set to continue for three consecutive days. Today's meeting was scheduled to continue until 3am Bangladesh time.

Confirming the negotiation schedule to TBS, Bangladesh's Press Minister in Washington Golam Mortoza said that a meeting is also slated for today from 10:30pm Bangladesh time to 1:30am tomorrow.

Prior to his departure for Washington on Monday night, Commerce Secretary Mahbubur Rahman informed TBS that a meeting with the United States Trade Representative (USTR) is also planned for 31 July (tomorrow). 

He added that talks might even continue on 1 August, despite the US President Donald Trump's administration's announcement that the imposed tariff rate would become effective on that day.

Commerce Adviser Sk Bashir Uddin, Chief Adviser's National Security Adviser Khalilur Rahman and Commerce Secretary Mahbubur Rahman are in the Bangladesh's negotiation team in Washington.

Package proposal

Speaking after a meeting of the Government Procurement Advisory Committee at the Secretariat today, Finance Adviser Salehuddin Ahmed confirmed that Bangladesh would present a "package proposal" to the US in an effort to reduce the reciprocal tariffs. 

"The commerce adviser has gone to the US with a package, including what we might buy, such as Boeing aircraft, wheat, soybeans, and other items," Salehuddin said. 

When asked if the initiative involved purchasing military aircraft or other goods from the US to avoid retaliatory tariffs, the finance adviser remained tight-lipped, saying, "There are more items, but I will not disclose them now. I will do so after the commerce adviser returns."

Meanwhile, Energy Adviser Muhammad Fouzul Kabir Khan confirmed to TBS today that discussions have taken place with the Trump administration regarding increased imports of liquefied natural gas (LNG) from the US. 

He clarified that while Bangladesh imports LNG under G2G (government-to-government) agreements and from the spot market, there is no such deal with the US, and its government companies are not involved in the LNG business. "Therefore, we will import more LNG from US companies through the spot market," he explained.

The energy adviser said, "Twenty-three companies are enlisted to supply fuel to Bangladesh from the spot market. They include several US companies like Accelerate Energy. Our discussions with the US have centred on the condition that if American companies offer competitive prices when we purchase LNG from the spot market, we will buy from them." 

Halving trade gap a target

According to data from the Bangladesh Export Promotion Bureau (EPB) and Bangladesh Bank, the US is Bangladesh's primary export market for ready-made garments, accounting for $8 billion in total exports. Bangladesh's imports from the US amount to approximately $2 billion. The government aims to halve this existing trade deficit by increasing imports from the US to secure tariff concessions.

Initiatives include the purchase of 25 Boeing aircraft and 7 lakh tonnes of wheat annually by the government. Efforts are also underway to boost private sector imports of cotton, soybeans, wheat, and pulses. 

A business delegation departed Dhaka for the US today to discuss increased imports with US businesses and to sign memoranda of understanding.

The commerce secretary also said that Bangladesh plans to inform the USTR of its intention to increase government imports from the US by $1.5 billion and private sector imports by $1.5 billion to $2 billion within the next one to one-and-a-half years.