Dhaka on ‘right path’ to secure US tariff cut

Bangladesh is preparing to submit its formal proposal to the United States as negotiations for a tariff reduction deal gain momentum.

"You can say that Bangladesh is going in the right direction to sign the agreement with the US for the reduction of the tariff rate," he told The Daily Star over the phone yesterday.

He said a position paper detailing Bangladesh's requests and offers has been prepared and would be submitted to the Office of the United States Trade Representative (USTR) today or tomorrow.

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

The third round of negotiations with the USTR is expected soon, although a date has not been set. The second round concluded recently, with the government now finalising its stance ahead of the next meeting.

An inter-ministerial meeting was held at the commerce ministry on Sunday to finalise Bangladesh's position. It was attended by Commerce Adviser Sk Bashir Uddin, National Security Adviser Khalilur Rahman, and Special Assistant to the Chief Adviser Fayez Ahmed Tayeb. Eleven secretaries from various ministries also joined the meeting.

According to officials present, Bangladesh has agreed to reduce tariffs on several US goods and increase imports from the US as part of the broader negotiation process.

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

Despite progress, the USTR has not yet confirmed a schedule for the third round of negotiations.

Meanwhile, local garment exporters, who face one of the steepest tariffs in the US market, are closely watching the developments.

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the impact of the current US tariffs varies widely across factories.

Of 1,322 member factories, 146 export 81–100 percent of their products to the US, and 91 factories export 61–80 percent. Another 87 factories export 41–60 percent, according to BGMEA data.

"We will face a lot of challenges if the tariff is not lowered," Khan told The Daily Star.

Shovon Islam, managing director of Sparrow Group, which exports $150 million worth of goods to the US annually -- half of his company's total exports -- said some American buyers have already asked him to share half of the 35 percent tariff burden.

Others are frustrated with the high duty, he said.

Islam added that he, along with some of the buyers, are still hopeful the negotiations will yield results.

A businessman said a private sector group, particularly from the garment industry, is now lobbying to involve American buyers in seeking a reduced tariff for Bangladesh.