Bangladesh, US conclude final round of tariff talks
Most issues with the United States Trade Representative (USTR) have been resolved, officials say.
The final round of negotiations between Bangladesh and the United States over a trade agreement aimed at reducing reciprocal tariffs has concluded, according to officials from the Ministry of Commerce.
The talks, which have entered their third and final day, have been focused on easing the 35% tariff currently imposed on Bangladeshi exports.
The concluding session of the talks in Washington, DC started at 11pm Bangladesh time on Thursday and ended 1am on Friday.
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Officials from the Bangladesh Embassy in Washington confirmed the timing and noted that the final tariff rate could be announced soon after the negotiations conclude.
The officials noted that most issues with the United States Trade Representative (USTR) have been resolved. A few matters remain under discussion as the final day of talks concludes.
"We believe the negotiations will lead to a further reduction in tariffs on Bangladesh. However, the final rate will be set by President Trump," said a commerce ministry official.
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.
On 2 April, the Trump administration imposed a 37% reciprocal tariff on Bangladeshi imports. The rate was later reduced to 35% on 7 July, with implementation scheduled to begin tomorrow (1 August), according to a letter sent by US President Donald Trump to Chief Adviser Muhammad Yunus.
Following the first day of the final round of negotiations, Bangladesh Commerce Secretary Mahbubur Rahman told The Business Standard yesterday morning that the delegation is optimistic about further tariff reductions.
He expressed hope that the final rate would be lower than that imposed on Vietnam and India, two of Bangladesh's main competitors in the US ready-made garment (RMG) market.
Yesterday, President Trump announced a 25% tariff on Indian imports and penalties on the import of Russian fuel oil and LNG. He also revealed plans to cut Vietnam's existing 46% tariff to 20%.
Before departing for Washington, the commerce secretary noted that even if both sides reach a consensus, the trade agreement would not be signed before 1 August. The final draft must first be approved by the advisory council and vetted by the law ministry.
According to the Export Promotion Bureau (EPB) and Bangladesh Bank, the US is the largest market for Bangladesh's RMG exports, totaling $8 billion annually. In contrast, Bangladesh imports about $2 billion worth of goods from the US.
To address the $6 billion trade imbalance and strengthen its case for tariff relief, Bangladesh is working to increase imports from the US.
Initiatives include plans to purchase 25 Boeing aircraft, import 700,000 tonnes of wheat annually, and boost private-sector imports of US cotton, soybeans, and pulses.
A business delegation also departed Dhaka for Washington on Tuesday to hold talks with US companies and sign a memorandum of understanding (MoU) to expand trade.
