Govt to boost ICT exports to offset US tariff impacts: CA's Special Assistant Taiyeb
To offset any decline in apparel exports, we are planning to boost technology and ICT exports, he says
The interim government is planning to boost information communication and technology (ICT) related exports, aiming to offset the impact of the 37% reciprocal tariff on Bangladesh announced by the United States recently, said Faiz Ahmad Taiyeb, the chief adviser's special assistant for posts, telecommunications and ICT.
The tariff, unveiled by US President Donald Trump in the early hours of Thursday (3 April), is expected to create a slump in demand for Bangladeshi apparel in the US market and hurt Bangladesh's exports to some extent.
"To offset any decline in apparel exports, we are planning to boost technology and ICT exports," Taiyeb told The Business Standard today (4 April).
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After the reciprocal tariff, Bangladesh will enjoy some advantages against some competing countries like Vietnam and Cambodia, while some other countries will have a better tariff edge.
However, ultimately, Bangladesh's RMG should not lose its edge, he believes.
"The major concern right now is the reduced purchasing power of US consumers, which may hurt apparel exports to the USA. To offset it, we can boost exports of our back office software support, our software, innovations and services in the sectors including AI-related new businesses, ed-tech, agro-tech, fin-tech and health-tech," said the CA's special assistant.
"By more direct imports from the USA, we can reduce the trade deficit with the country and push for the reduction of the reciprocal tariff," he said.
According to Taiyeb, US technology is world-leading and moving away from pirated software.
"Bangladesh buys lots of US hardware and software from distributors in the regional markets like Singapore and India. The USA counts them as their export to those countries. "It can be treated as US exports to Bangladesh if we negotiate for direct imports from the USA," Taiyeb noted.
"In that case, the USA needs to declare Bangladesh a separate market outside the umbrella of India or Singapore. We will raise the point at the trade negotiation table," he said.
"We can directly import the non-tech, non-ICT products from the USA, too, which are being imported from other countries now," he added.
The interim government is working on an import duty structure to reduce that for imports from the USA, he said.
"In the ICT and technology sectors, we are also working to attract US companies to invest in Bangladesh through lucrative packages including better connectivity, land facilities and others."
