Dhaka proposes third-round tariff talks on Sunday, awaits US response

After repeated delays in scheduling the third round of negotiations on the reciprocal tariff issue, Bangladesh has now formally requested a specific date from the United States for the meeting, commerce ministry officials said.

In a letter sent to the United States Trade Representative (USTR), the commerce ministry has proposed holding the meeting next Sunday to move forward with the talks.

If the USTR confirms the proposed date, a delegation led by Commerce Adviser Sheikh Bashir Uddin will leave for Washington for the final round of negotiations. If the US offers an alternative date, the delegation will travel accordingly, officials said.

Speaking to The Business Standard yesterday evening, Commerce Secretary Mahbubur Rahman said, "We have sent our position paper today to the USTR in response to the draft agreement they proposed. Along with that, we've requested to schedule the next meeting within the coming week."

"If they confirm the meeting as per our request, we'll proceed accordingly. Otherwise, we'll go when they provide an alternative date," he added.

On 8 July, the United States imposed a 35% reciprocal tariff on Bangladeshi goods and sent several draft documents to the government as part of a proposed trade agreement. In anticipation of the third round of negotiations, the commerce ministry had even booked flight tickets for a delegation to leave for Washington on 21 July.

However, the visit was postponed following a message from the USTR, the commerce secretary said.

"Last Wednesday, the USTR informed us via email that the Bangladeshi delegation should not travel to the US without a confirmed meeting schedule," said the secretary.

"They explained that USTR officials are currently preparing for trade negotiations with multiple countries, making it difficult to fix a time at this moment."

The planned delegation for the third round of talks includes Commerce Adviser Sheikh Bashir Uddin, National Security Adviser Khaliqul Rahman, Chief Adviser's Special Assistant Faiz Ahmad Taiyeb, Commerce Secretary Mahbubur Rahman, and several other officials.

Reflecting on the previous round of talks, commerce ministry officials noted that the imbalance in delegation sizes had worked against Bangladesh. While the US side included 30-40 officials, Bangladesh was represented by just three or four.

This left Bangladesh at a disadvantage during negotiations. That's why more members will be included in the delegation this time to strengthen our position in the third round, the officials said.

Commerce ministry officials say the United States has announced that its proposed 35% reciprocal tariff on Bangladeshi exports will take effect on 1 August, leaving Bangladesh with just over a week to finalise negotiations.

With the US yet to confirm a date for the third round of talks despite repeated requests, concerns are mounting in Dhaka over the rapidly shrinking window to strike a deal.

"If the US does not postpone the implementation of the additional tariffs, Bangladesh must reach an agreement with them by 31 July," said a senior commerce ministry official. "Otherwise, the new tariff rate will be imposed, which could significantly harm Bangladesh's exports to the US."

To reduce the tariff imposed on Bangladesh by Trump administration, Dhaka has offered Washington certain concessions, including duty relief and an increase in government-to-government imports from the US.

However, officials stressed that Bangladesh will not accept any "non-trade conditions" as part of the deal.

"The US draft includes several non-trade conditions, which Bangladesh is not willing to accept," said an official familiar with the negotiations. "But rather than outright rejecting those clauses, Bangladesh will seek extended timelines – five to ten years, depending on the condition – for gradual compliance."