Speed up labour law reforms for further tariff cuts

The Dhaka-visiting US trade delegation has called on the government to accelerate labour law reforms and narrow the trade deficit to help further reduce retaliatory tariffs on Bangladeshi exports to the American market.

The delegation made the call during a meeting with leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at the US ambassador's residence in Dhaka yesterday.

Brendan Lynch, assistant US trade representative for South and Central Asia, led the three-member team.

BGMEA leaders urged the US side to consider deeper tariff cuts to sustain the steady flow of garment exports to the American market, which is the largest source of private-sector employment in Bangladesh.

BGMEA President Mahmud Hasan Khan said cotton imports from the US have already begun and that the process of importing more wheat, liquefied natural gas (LNG) and other goods is underway.

He said these imports would help narrow the trade deficit.

"We have learned that if at least 20 percent of the total value of a product exported to the United States is used in the production of that product, then the countervailing duty will not be applicable on that 20 percent," said the BGMEA president.

"Therefore, we have requested the US delegation to clarify that. They said they are working on the issue. They will inform you soon."

On labour law reforms, Khan said that consensus had been reached on 122 out of 124 proposed amendments through tripartite talks and that the remaining issues were expected to be resolved through further dialogue.

He added there were no objections to supporting International Labour Organization (ILO) conventions.

Bangladesh exports goods worth more than $8 billion to the US each year and imports about $2 billion, leaving a $6 billion trade gap.

The US is the country's largest single export destination, with garments accounting for more than 90 percent of shipments to the American market.

Bangladesh is also the third-largest garment exporter to the US after China and Vietnam, holding a 9.3 percent share of the $81 billion American apparel import.