CA Yunus writes to Trump seeking 3-month pause on 37% tariff

Highlights:

• Bangladesh to increase imports of US agricultural products such as cotton, wheat, corn, soybean
• Further tariff cuts soon on US export items including gas turbines, semiconductors, medical equipment
• An array of non-tariff barriers to US exports to be removed

Chief Adviser Muhammad Yunus has addressed a letter to US President Donald J Trump requesting him to postpone the application of 37% US reciprocal tariff on Bangladesh for three months to allow the interim government to smoothly implement its initiative to substantially increase US exports to Bangladesh.

"We are the first country to take such a pro-active initiative," he said in his letter, citing the visit of High Representative Dr Khalilur Rahman to Washington DC in February, reads a statement from the CA's Press Wing.

"Ever since, the two sides have been working closely to identify specific actions. Bangladesh is also the first country to enter into a multi-year agreement to import liquified natural gas from the US.

"The centerpiece of Bangladesh's actions is to significantly increase imports of US agricultural products such as cotton, wheat, corn and soybean which will offer benefits to US farmers."

Bangladesh has the lowest tariff on most US exports in the South Asian region, the chief adviser said, indicating that further tariff cuts on US products are being fashioned, including top US export items such as gas turbines, semiconductors and medical equipment.

Bangladesh will build dedicated duty free bonded warehouses for cotton to improve speed to market, he said.

"We are eliminating certain testing requirements, rationalising packaging, labelling and certification requirements and undertaking trade facilitation measures such as simplifying customs procedures and standards," the chief adviser added.

"Bangladesh will take all necessary actions to fully support your trade agenda," Yunus assured President Trump.

A separate letter detailing the actions by Bangladesh will be sent by the commerce adviser to the US Trade Representative soon, according to the CA's Press Wing.

Below is the full version of the letter as seen and confirmed by The Business Standard:

Dear Mr. President, 

I write to assure you that we in Bangladesh will take all necessary actions to fully support your trade agenda. 

Shortly after your inauguration, I sent my High Representative to Washington DC to indicate our intent to substantially increase American exports to fast growing Bangladesh market of 170 million people. 

We were the first country to take such a pro-active initiative. We are also the first country to enter into a multi-year agreement to import liquefied natural gas (LNG) from the US and have been exploring further collaboration since you have lifted the freeze on LNG export permit. 

Ever since, our officials have been working with their US counterparts to identify specific actions to rapidly increase American exports to Bangladesh. Our Commerce Advisor will correlate with the US Trade Representative about details of our actions. 

A key focus of our action is to significantly increase our imports of US farm products including cotton, wheat, corn and soybean, which will contribute to the income and livelihood of US farmers. To increase speed to market of US cotton, we are finalising dedicated bonded warehousing facility in Bangladesh where they will have duty free access. 

You will also be happy to know that Bangladesh has the lowest tariff on most US exports in South Asian region. We continue to commit to zero tariff on the above American agricultural commodities, as well as on scrap metals. We are working on 50% reduction of tariff on top US export items such as gas turbines, semiconductors and medical equipment. 

We are also removing an array of non-tariff barriers to US exports. We are eliminating certain testing requirements, rationalising packaging, labelling and certification requirements and undertaking trade facilitation measures such as simplifying customs procedures and standards. 

We have executed the necessary steps to launch Starlink in Bangladesh. This momentum ushers a new era for US businesses in Bangladesh across a number of advanced tech sectors including civil aviation and defense. 

We will complete the ongoing and planned actions within the next quarter. Please allow us the necessary time to smoothly implement this important work in consultation with the US officials. I would therefore like to request you to kindly postpone the application of the reciprocal tariff measure on Bangladesh exports to the US for three months. I most sincerely hope that you will grant this request. 

Please accept, Mr. President, the assurances of my highest consideration. 

Yours sincerely, 

Professor Muhammad Yunus