Govt will facilitate exports of 100 more American products to Bangladesh at zero tariff

Highlights:

• 190 products currently get zero tariff facility 
• 100 more products to be included in the zero tariff schedule
• Bangladesh planning a long-term LNG deal with US
• Encourage US private equity access to Bangladesh healthcare
• Propose US auto makers to set up car manufacturing plants
• Inspire private entrepreneurs to import soy, wheat, cotton etc

The government will facilitate the export of 100 more products to Bangladesh at zero tariff to reduce the trade deficit with the United States. 

Bangladesh Commerce Advisor Sheikh Bashir Uddin sent a letter to the United States Trade Representative (USTR) this evening (7 April) informing about the government's initiative.

Speaking to The Business Standard, Commerce Adviser Bashir said the letter sent to the USTR mentions bringing 100 products under a new zero-tariff schedule, and most of these are US-made products.

"This will increase US exports to Bangladesh," he said.

"Currently, 75% of our imports from the US consist of cotton, scrap, soy, and petroleum products. We are trying to identify and remove any tariff and non-tariff barriers the US faces when exporting other products to Bangladesh, in order to increase our imports.

"Since Bangladesh is on the path to LDC graduation, we have to undertake these measures as part of trade liberalisation," he added.

A copy of the letter, issued by the commerce ministry, was seen by The Business Standard correspondent.

In his letter, Bashir Uddin wrote, "Our Tariff Schedule contains 190 product lines with zero tariff and another 100 product lines are being considered to be included in the zero tariff schedule."

Furthermore, the letter also said Bangladesh was planning a long-term LNG deal with the US and would provide private equity access to healthcare to get tariff relief.

"Our government is examining ways to reduce tariff rates and eliminate all kinds of non-tariff barriers and has initiated reforms to enhance mutually beneficial trade for both countries. The reform initiative includes import policy order, simplification of customs procedure, enforcement of intellectual property rights, protect trademarks, patent rights and so on," reads the letter.

"We are also planning long term LNG deal with US counterpart and set to propose US auto makers to set up car manufacturing plants and inspiring private entrepreneurs to import soy, wheat, cotton etc. on enhanced scale. We will encourage US private equity access to healthcare and other service sectors of Bangladesh. I am confident these steps among others will contribute to narrowing gaps between our bilateral trade."

The letter also states, "Since the withdrawal of preferential access of Bangladeshi exports to the US, your esteemed government has been imposing 15% tariff on all goods from Bangladesh while we impose a weighted average tariff on US products at 6.10% where raw cotton and steel scrap face tariff rate at 0% and 1% respectively. Bangladesh, one of the largest importers of US cotton, manufactures readymade garments, and exports facing higher tariffs in the United States." 

Bangladesh remains committed to open dialogue and collaboration to remove any barrier to the US exports to Bangladesh, if any, and to resolve trade disputes and promote mutual prosperity, adds the letter. 

"We have already held successive meetings with the trade wing of the US embassy in Bangladesh to identify barriers to US trade with Bangladesh and agreed a number of measures to resolve," the letter states.

"The Chief Adviser, Nobel laureate, Professor Dr Mohammed Yunus and his government including my office commit to take all necessary steps to initiate constructive engagement and plausible dialogue with your esteemed department to strengthen our bilateral trade relation to benefit trade of both the countries and improve livelihood of both the peoples. I am eagerly looking forward to receiving your response in this regard," the letter concludes.

Earlier in the day, Chief Adviser Muhammad Yunus addressed a letter to US President Donald J Trump requesting him to postpone the application of US reciprocal tariff measures on Bangladesh for three months to allow the interim government to smoothly implement its initiative to substantially increase US exports to Bangladesh.

On 2 April, US President Donald Trump imposed reciprocal tariffs on goods exported by other countries, including 37% on Bangladesh, 26% on India, 34% on China and 20% on the European Union, as a response to duties put on US goods.

In response, the government announced plans to revise its import policy by easing non-tariff barriers to facilitate US exports, while CA Yunus remains hopeful of positive progress in resolving the tariff issue through talks with the US government.

On 5 April, Chief Adviser Muhammad Yunus convened an emergency meeting to discuss the US tariff issue. 

After the meeting, Commerce Adviser Sk Bashir Uddin said Bangladesh plans to increase imports of essential goods from the US and reduce its trade surplus with the country to negotiate the 37% tariff, set to take effect on 9 April.