USTR yet to give date for final tariff talks

The United States Trade Representative (USTR), the chief trade negotiation body of the American government, is yet to provide a specific date and time to Bangladesh for the launch of the third and final round of tariff negotiations, although time is running out.

Bangladesh on Tuesday sent its position paper to the USTR and sought to engage in the negotiations on July 26 to come to an agreement on a favourable tariff rate that would be applicable to its exports.

However, as of yesterday, the USTR had not given any date to Bangladesh for the fresh round of meetings, said a senior official familiar with the negotiation process, asking not to be named.

But the USTR is expected to offer a date between July 27 and July 29 to sit for the negotiation meeting, the official also said.

The Trump administration is scheduled to apply the new tariff rates for the countries concerned from August 1. That means the tariff rate needs to be negotiated within this month.

In a last-ditch effort, a group of local garment exporters is now trying to hire a lobbying firm in the US to hold negotiations with the Trump administration on the tariff rate.

The government has not hired any lobbying firm in the US to negotiate with the Trump administration on the reciprocal tariff.

The private sector's initiative to hire a lobbying firm in the US has also seen no progress as there is too little time, said one of the persons who undertook the initiative, asking not to be named.

Zaidi Sattar, chairman of the Policy Research Institute of Bangladesh (PRI), said he will support any effort by the private sector of Bangladesh to hire a lobbying firm in the US for the tariff negotiations.

If the Bangladeshi initiators can hire the lobbying firm, the PRI will share information pertaining to Bangladesh's economy and trade issues, he said.

Masrur Reaz, chairman of Policy Exchange Bangladesh, said there are some countries that have hired lobbying firms and many of them have been successful in lowering their respective tariff rates in consultation with the Trump administration.

The private sector in Bangladesh is helpless, and they are desperate to lower the tariff rate from 35 percent as time is running out fast, and now they are trying to hire the lobbying firm in the US, he said.

Although there is very little time, the effort can still be made, he said.

The private sector has not left any stone unturned, but "we have lost very valuable time," Reaz also said.

Another frustrated initiator, asking not to be named, said there are doubts over whether it would be possible to hire a lobbying firm now, and even if one is hired in the US, it would not bring any positive outcome.

Still, a group of Bangladeshi businesspeople is now in the US trying to appoint a lobbying firm, he said.

The US is the single largest export destination for Bangladesh, with local garment exporters sending apparel worth $8.2 billion last year.

If the 35 percent tariff rate comes into effect for Bangladesh, the garment sector may face challenges.

Some 1,322 garment factories in Bangladesh are directly involved in sending garments to the US, according to data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

These production units may fail to avail work orders like before due to the high tariff, it said.