US tariff talks: Bangladesh writes to USTR, seeking date

Bangladesh yesterday sent its position paper to the United States Trade Representative (USTR), the chief trade negotiation body for the American government, and sought July 26 as the new date for launching the third and final round of tariff talks with the Trump administration.

Commerce Secretary Mahbubur Rahman told The Daily Star over the phone that the USTR can set the date at its convenience, any time from July 26 onwards.

The negotiation team from Bangladesh will fly to America once the USTR fixes a date for the talks, he said.

Upon its return from the second round of negotiations, Bangladesh has prepared its formal proposal to the US as the negotiations will have to be completed by the end of this month.

The Trump administration is scheduled to impose new reciprocal tariff rates for the countries concerned from August 1 unless the pause on reciprocal tariff schedule is extended further.

The position paper outlines Bangladesh's commitments to increase imports of US goods and reduce duties on certain items, along with non-trade commitments that the government has deemed non-harmful.

Bangladesh has agreed to reduce tariffs on several US goods and increase imports from that country as part of the broader negotiation process.

For example, the government signed an agreement on Sunday to import 0.7 million tonnes of wheat from American suppliers annually. Talks are also at an advanced stage to procure 14 Boeing aircraft.

Some 1,322 factories, which are members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and mainly export products to the US, will face a difficult time if the tariff rate is not reduced at the end of the negotiations.

Of the factories, 100 export 91-100 percent of their goods to America, according to data from the BGMEA.

Forty-six companies export 81-90 percent of their goods to the United States; 91 export 61-80 percent; 87 export 41-60 percent; 176 export 21-40 percent; and 822 export up to 20 percent, the BGMEA data said.

Bangladesh seeks zero duty or a tariff rate lower than Vietnam's.

Due to the new 35 percent tariff imposed by the Trump administration, the local exporters fear losing the competitiveness in the US market, where Bangladesh last year exported garment items worth over $8.2 billion.

BGMEA President Mahmud Hasan Khan, who is hopeful for a reduced tariff in America, said the extension of the pause is up to the Trump administration as the time is running fast towards August 1.

However, the US retailers and brands expect that the tariff rate will be borne by the local garment and fabrics suppliers to reduce the burden of the 35 percent tariff, he added.