Dhaka gears up for 3rd round of talks to avert US tariff shock
Bangladesh will launch the third round of negotiations with the United States Trade Representative (USTR) next week, aiming to secure a more "rational" tariff structure before the August 1 deadline, said Commerce Adviser Sk Bashir Uddin yesterday.
Speaking at a press conference at the Commerce Ministry in Dhaka, the adviser said that a "rational tariff" would mean zero-duty access for Bangladeshi goods in US markets, a condition the government hopes will be met ahead of August 1. He was accompanied by Commerce Secretary Mahbubur Rahman.
For all latest news, follow The Daily Star's Google News channel. The development came after the US last Monday announced a plan to impose a 35 percent trade tariff on Bangladeshi imports, a slight reduction from the 37 percent rate initially proposed. The tariffs are expected to come into effect on August 1.
Adviser Bashir described the previous two rounds of talks with USTR, as well as meetings with economists, exporters, and business leaders, as "constructive and encouraging."
USTR is the chief trade negotiation body for the US government.
However, both the adviser and the secretary refrained from answering journalists' queries on the details of the talks, citing a Non-Disclosure Agreement (NDA) signed between Bangladesh and the USA in May to protect sensitive information related to the negotiations.
For example, the adviser did not respond to a question about whether a framework agreement would be signed with the USA before the negotiations conclude. He also declined to disclose the demands made by the USA during the ongoing negotiations.
Former Bangladesh ambassador to the US M Humayun Kabir told The Daily Star that a framework agreement outlines the basic principles of bilateral relations, based on which more specific agreements may follow. However, he noted that it would be difficult for Bangladesh to sign such an agreement in a short period without thorough consultations ahead of the August 1 tariff implementation.
Adviser Bashir Uddin expressed optimism about a positive outcome, saying the local exporters have been doing business with the USA at competitive prices for many years.
Before the press conference, the adviser held a consultation meeting with economists and trade body leaders to gather opinions and plan the next steps. He added that more stakeholder meetings would take place before the third round of negotiations with the USTR.
He also said the government would not hire lobbyist groups to negotiate tariff rates with the Trump administration, despite earlier demands from private sector entrepreneurs.
On behalf of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), its president Mohammad Hatem said businesses are satisfied with the government's handling of the tariff issue.
The commerce secretary clarified that the draft tariff agreement does not include a 40 percent value addition requirement, as claimed by some reports. It also does not mandate reducing dependence on China for industrial raw materials as a condition for securing lower tariffs from the USA.
In his introductory remarks, the secretary acknowledged that the reciprocal tariff would negatively impact Bangladesh's exports to the USA. He said the government is committed to minimising these effects by negotiating a reduced tariff rate.
Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development; Masrur Reaz, chairman of Policy Exchange Bangladesh; Selim Raihan, executive director of the South Asian Network on Economic Modelling; and Mostafa Abid Khan, a former member of the Bangladesh Trade and Tariff Commission, participated in the consultation meeting with the adviser.
Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association; Syed Nasim Manzur, president of the Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh; Kamran T Rahman, president of the Metropolitan Chamber of Commerce and Industry; Md Hafizur Rahman, administrator to the Federation of Bangladesh Chambers of Commerce and Industry; Anwar-Ul Alam Chowdhury, president of the Bangladesh Chamber of Industries; A Matin Chowdhury, former president of the Bangladesh Textile Mills Association (BTMA); and Razeeb Haider, director of BTMA, were among others who participated in the consultation meeting.
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