Suggestions to strengthen Bangladesh's apparel export position to US retailers
Bangladesh should sign a five-year LNG import agreement with the US, valued at several billion dollars, to establish long-term trade ties and strategic alignment
Urgent diplomatic engagement:
Prof Yunus must immediately initiate discussions with President Trump and the USTR to negotiate zero tariffs for US-bound imports from Bangladesh.
Strategic LNG agreement:
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Bangladesh should sign a five-year LNG import agreement with the US, valued at several billion dollars, to establish long-term trade ties and strategic alignment.
US cotton supply chain enhancement:
Establish climate-controlled bonded warehouses for US cotton imports. Emphasise that US cotton already benefits from zero-duty tariffs in Bangladesh.
Expand US agricultural imports:
Explore greater import volumes of US agricultural products such as corn, soybean, and others to balance trade relations and show commitment.
Value addition in the US:
Share positive news that Ananta Group and other Bangladeshi exporters are willing to establish factories or conduct at least 20% value addition in the US. (This would require permission to invest export earnings abroad.)
The threat is real:
US buyers are alarmed. They are likely to pressure suppliers to reduce prices to stay competitive with countries like India and Pakistan, where the 11% duty on FOB is a major advantage.
These countries — along with Egypt, Jordan, Kenya, and Turkey — are preparing for significant capacity expansion and investment within the next year.
Immediate policy recommendations for Bangladesh government (to support exporters to the US):
Lower utility and bank interest rates: Make production more cost-effective to stay competitive.
Currency depreciation: While controversial, it is necessary to enhance export competitiveness.
Access to salary and working capital loans: Provide subsidised interest rates to support operational stability.
Encourage MMF supply chain investment: Offer incentives for investments in man-made fibre infrastructure and withdraw restrictive policies like increased utility charges on new ventures.
Sharif Zahir is the managing director of Ananta Group
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.
