Dhaka pushes Washington to lower tariffs

Bangladesh’s reciprocal tariff rate on exports to the United States may see further reduction from the current 20 percent, bringing it more in line with regional competitors, as both governments move to strengthen bilateral trade ties, according to a statement from the Chief Adviser’s Press Wing yesterday.

US Trade Representative Ambassador Jamieson Greer has agreed to raise the possibility of lowering the tariff with President Donald Trump, following a request from National Security Adviser Khalilur Rahman during his ongoing visit to Washington, said the statement.

Both sides also discussed a proposed preferential scheme that would allow tariff-free entry of Bangladeshi textile and apparel exports equivalent to the country’s imports of US cotton and man-made fibre inputs, measured on a square-metre basis.

Bangladesh currently faces a 36.5 percent tariff on exports to the US. Since August last year, the Trump administration has imposed a 20 percent reciprocal tariff on Bangladeshi goods, in addition to the existing 16.5 percent duty. President Trump had initially proposed a 37 percent tariff, but following intense negotiations, the rate was reduced to 20 percent. 

The concession came after Bangladesh pledged to increase imports of American products, including aircraft, cotton, LNG, soybeans, and wheat, in a bid to narrow the $6 billion trade gap between the two countries.

Meanwhile, US Under-Secretary of State for Political Affairs Allison Hooker said Washington may review the bond requirements for the Bangladeshi visa seekers if the overstay by the tourists declines substantially in the future.

Hooker made the suggestion during a meeting with Rahman on Friday, according to a statement by the Bangladesh embassy in Washington DC yesterday.

The US has recently announced that Bangladeshi applicants for visit and business visas must submit bonds ranging from $5,000 to $15,000.

Over the past year, the US has repatriated about 300 undocumented Bangladeshis and is seeking the return of more than 4,000 others with pending cases.

During the meeting, Rahman also briefed Hooker about the preparations and arrangements for the upcoming general elections and expressed appreciation for the support of the US to the interim government during its tenure, including for the elections.

Hooker said the US continues its strong support for the democratic transition in Bangladesh and looks forward to free and fair elections in February.

On broader regional issues, Rahman conveyed Bangladesh’s interest in principle in joining the proposed international stabilisation force for Gaza. 

In response, Hooker said that the US is willing to work together with Bangladesh on this important matter.

In November last year, the UN Security Council passed a US-sponsored resolution which backs US President Donald Trump’s 20-point plan for ending Israel’s war on Gaza. Among the clauses was one that supported the creation and deployment of an international stabilisation force to provide security and oversight of the ceasefire agreement in Gaza.

In a separate meeting with Assistant Secretary of State Paul Kapur, Rahman discussed issues of mutual interest, including the forthcoming election in Bangladesh, US-Bangladesh bilateral relations, the Rohingya crisis, the US visa bond, trade and investment and other regional issues.

As a special invitee, Rahman attended the swearing-in ceremony of Brent Christensen, the newly appointed US Ambassador to Bangladesh, held in the State Department. Christensen is expected to join the US Embassy in Dhaka tomorrow.