Dhaka: Commerce Adviser Sk. Bashir Uddin today expressed hope that the existing US reciprocal tariff rate of 20 percent on Bangladeshi products could decrease further as the trade gap between the two nations narrows due to increased imports. Bashir made these remarks at a press conference held at the commerce ministry at Bangladesh Secretariat after meeting with Brendan Lynch, assistant US trade representative for South and Central Asia.
According to Bangladesh Sangbad Sangstha, Bashir emphasized that the reduction in tariff rates hinges on the increase in imports of US goods, which would help to narrow the bilateral trade gap. He also mentioned the possibility of signing a trade agreement between Bangladesh and the USA this month, as the matter was thoroughly discussed in the meeting.
The Commerce Adviser highlighted that the day’s meeting with the USTR was a continuation of previous discussions in the USA. In the context of reducing the trade deficit, Bangladesh has requested the USTR to further reduce the reciprocal tariff. The US side has assured that if the trade gap continues to shrink, a further tariff cut is possible. Bashir noted that the discussions aim to finalize a trade agreement with the US.
Commerce Secretary Mahbubur Rahman pointed out that the trade deficit between Bangladesh and the USA is approximately $6 billion. To reduce this gap, Bangladesh had previously committed to increasing its purchases, such as soybeans, from the USA. He mentioned that reducing the trade gap while maintaining exports could lead to additional benefits for Bangladesh.
Bashir stated that progress in talks with the US is satisfactory, with both countries experiencing economic growth. He mentioned efforts to reduce the trade gap through the import of energy and agricultural products from the US at competitive prices compared to the international market, and also plans to procure aircraft.
The Commerce Adviser reviewed the progress made in reducing the trade deficit and expressed satisfaction with the achievements. In response to queries, he mentioned efforts to secure additional facilities from the USA in the RMG sector and the hope for progress based on the day’s meeting.
The discussions primarily focused on trade-related issues, with no dialogue on labor rights. Regarding US cotton, Bashir noted Bangladesh’s reliance on imports for 98 percent of its cotton needs and the goal to reduce tariffs based on procurement.
Bashir expressed optimism about finalizing a trade agreement this month. He also highlighted the higher protein content of US wheat compared to Russian wheat, and the comparative affordability of US agricultural products. He cited China’s tariffs on US agricultural products as a factor enabling Bangladesh to procure goods at a lower price.
On the procurement of Boeing aircraft, Bashir noted the long delivery schedules from both Boeing and Airbus, with orders not expected to be fulfilled before 2032. This long-term procurement plan is seen as a means to potentially minimize the trade gap in the future.
Bangladesh aims to increase imports of US liquefied natural gas, wheat, soybeans, and cotton to reduce the trade gap with the Trump administration. Currently, the trade between Bangladesh and the USA is skewed in favor of Bangladesh due to its substantial garment exports. Bangladesh exports over $8.2 billion worth of goods to the USA annually, while imports are valued at $2 billion.