Dhaka: A US trade delegation will arrive in the capital next week to discuss progress on finalizing a possible trade deal with the USA, alongside talks about reducing the reciprocal 20% tariff currently imposed on Bangladeshi exports to the US market. "We're trying to get a further tariff cut on our exports to the USA. The negotiations will focus on expediting the efforts for finalizing a trade agreement alongside securing a further cut in the tariff during the delegation's visit," Commerce Secretary Mahbubur Rahman told the BSS this afternoon.
According to Bangladesh Sangbad Sangstha, the visit of the United States Trade Representative (USTR) team, starting Sunday, will be led by Brendan Lynch, the assistant USTR for South and Central Asia. The Commerce Secretary noted that during the Bangladesh delegation's last visit to the USA over the tariff issue, discussions were held with the US side to further reduce the reciprocal tariff on Bangladeshi exports from the reduced 20 percent. He mentioned that they would hold discussions on progressing further about finalizing the trade deal with the USA.
Commerce Adviser Sk. Bashir Uddin and National Security Adviser Khalilur Rahman previously informed reporters that both countries are negotiating to further lower the reciprocal duty on Bangladeshi goods from 20%. According to Commerce Ministry officials, a draft trade agreement has already been prepared after discussions with the USTR officials. If there is progress in the upcoming negotiations, the draft will be finalized with necessary amendments.
Last month, the US reduced its tariff rate on goods from Bangladesh to 20 percent, a significant reduction from the previous 35 percent, following intense negotiations in Washington. The announcement came from the White House after final talks between Bangladeshi officials and the USTR. However, a formal agreement has yet to be signed, despite ongoing negotiations with the US side at various times, added the Commerce Secretary.
Commerce ministry officials indicated that Bangladesh is pursuing further duty cuts to conclude an agreement with Washington. To this end, the ministry sought additional negotiation time, prompting the USTR delegation's visit. During their visit, the USTR delegation is likely to hold meetings with commerce ministry officials, Chief Adviser Professor Dr Muhammad Yunus, Foreign Affairs Adviser Md Touhid Hossain, and Foreign Secretary Asad Alam Siam.
Industry insiders suggest that the Trump administration's imposition of higher reciprocal tariffs on India and China, two of Bangladesh's main competitors in the global readymade garments sector, is advantageous for Bangladesh. The United States has already imposed 50 percent and 30 percent reciprocal tariffs on Indian and Chinese shipments, respectively. In comparison, the rate is 20 percent for Bangladeshi goods, which positions Bangladesh as an alternative sourcing hub for international retailers and brands.
Speaking at a recent event, Dr Zahid Hussain, a former lead economist at the World Bank's Dhaka office, estimated that local exporters, particularly in the readymade garment sector, could secure up to $2 billion in additional orders, largely redirected from India and China, due to the tariff boon.