Rethinking trade and cooperation: A time for dialogue

The recent imposition of tariffs by the United States on export items from Bangladesh, including ready-made garments, comes at a time when the global trading system is facing increasing uncertainty. 

For Bangladesh—a country that has long supported multilateral, rules-based global trade as a member of the World Trade Organization—this development necessitates a serious rethinking of its trade strategies.

Over the past few decades, Bangladesh has steadily emerged as a reliable partner in global supply chains. Our RMG sector now employs over four million workers, the majority of whom are women. The sector constitutes the largest share of the country's export earnings. This success is the result of years of hard work, consistent policy reform, and the cultivation of strong relationships with international buyers, including many in the United States.

We fully acknowledge the sovereign right of any country to revisit its trade policies in accordance with domestic economic priorities. However, the scale and abruptness of this particular tariff increase raise serious concerns about the future of the multilateral trading system. 

For countries like Bangladesh, which have for years championed the interests of the least developed countries (LDCs) in various WTO negotiation rounds, this move poses a threat to our export-led growth model. It also reflects the growing strain on multilateral institutions originally established to uphold fair, rules-based trade. As unilateral decisions become more frequent across the globe, developing economies risk being caught in the middle, with limited avenues for recourse and a diminishing space for dialogue.

What worries many in the business community is not only the imposition of the tariff itself, but the uncertainty it introduces into an already volatile economic environment. The absence of prior consultation or a transparent framework for redress makes it exceedingly difficult for exporters and investors to plan with confidence. For small and medium-sized factories operating on thin margins, such sudden policy shifts can present existential threats.

From Washington's perspective, the tariff adjustment forms part of a broader trade strategy aimed at revitalising domestic industry, strengthening supply chain resilience, and promoting higher labour and environmental standards worldwide. Ongoing conversations around trade transparency and compliance are also central to what US officials describe as a values-based trading system.

These are legitimate concerns, and Bangladesh remains open to constructive engagement. In recent years, we have undertaken significant efforts to improve worker rights, enhance factory safety, and promote sustainability. Our record of progress—especially in the aftermath of the Rana Plaza tragedy—has received global recognition. Nevertheless, we understand that reforms must be continuous, and we remain committed to working alongside our partners to meet shared expectations and standards.

We therefore urge our counterparts in the United States to engage Bangladesh in meaningful, forward-looking dialogue on trade issues. A collaborative approach—rooted in mutual respect and aligned with shared goals—can ensure that trade continues to serve as a tool for inclusive growth and sustainable development. 

At the same time, we call on multilateral institutions, particularly the World Trade Organization, to play a more proactive role in ensuring fair and equitable outcomes for all member states, especially those in transition, like Bangladesh.

This moment also offers Bangladesh an opportunity for self-reflection regarding trade resilience. We must redouble efforts to diversify our export base, invest in value-added manufacturing, and strengthen both diplomatic and economic relationships with a broader set of partners. Areas such as regional integration, skills development, and digital trade warrant strategic emphasis and could deliver long-term benefits. 

As we prepare for our graduation from LDC status, we must also advocate for a global trading system that prioritises inclusive development and acknowledges the unique challenges that emerging economies face during such transitions.

Asif Ibrahim. Sketch: TBS

Asif Ibrahim is a former president of the Dhaka Chamber of Commerce and Industry (DCCI).

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.