Commerce Secretary Mahbubur Rahman announced that the United States has given a green light on the first day of the final negotiations aimed at reducing the 35 percent reciprocal tariff imposed on Bangladesh.
Speaking from Washington on Wednesday (July 30) at 6 am Bangladesh time, he stated, “We had productive discussions with the United States on July 29 according to the agenda, and we have received an assurance from the United States Trade Representative (USTR) officials that the tariff on Bangladesh will be lowered.”
The Commerce Secretary further mentioned, “Our tariff will see a significant reduction. However, it is currently impossible to specify the exact amount. We have meetings scheduled for today and tomorrow as well. I am optimistic that positive outcomes will arise for Bangladesh.”
The first day of the third phase of discussions regarding the Bangladesh-US tariff matter has concluded. The talks commenced at 3:30 am Bangladesh time.
The Bangladesh delegation is headed by Trade Advisor Sheikh Bashir Uddin. National Security Advisor Khalilur Rahman, Commerce Secretary Mahbubur Rahman, and Additional Secretary Nazneen Kawsar Chowdhury are also in attendance. Officials from various ministries and departments have joined the discussions virtually.
On the US side, Assistant Trade Representative Brendan Lynch is leading the team, which includes trade and customs officials.
The Bangladesh Embassy in Washington DC is overseeing the entire tariff negotiation process.
In preparation for the final round of negotiations to lower the US counter-tariff, Bangladesh has decided to import wheat, pulses, and liquefied natural gas (LNG) worth $1.5 billion from the US within the next year to help mitigate the trade deficit between the two nations. The new tariff rate is set to take effect on August 1.
The government has finalized an agreement with the US to purchase 700,000 tons of wheat each year on a government-to-government basis and has also approved a plan to acquire 2.2 million tons of wheat. Additionally, the government intends to boost LNG imports and procure 25 Boeing aircraft from the US.
Moreover, a delegation comprising importers of cotton, wheat, soybean, and pulses has departed for the United States to enhance imports from the US by an additional $1.5 to $2 billion through the private sector.
Before departing Dhaka for the US on Monday (July 28), the Commerce Secretary stated that the new import volume Bangladesh aims to secure will raise imports from the US by $3 billion.
“We commit to increasing imports by $1.5 billion over the next one to one and a half years. The remainder will be sourced by the private sector,” he remarked.
Shawkat Aziz Russell, President of the Bangladesh Textile Mills Association (BTMA), is set to travel to the US on Tuesday night as a representative of the private sector. The textile mills in the country import cotton to manufacture yarn and fabric. Additionally, representatives from TK Group, Meghna, and City Group, leading importers of soybean, wheat, and pulses, are also heading to the US.
The Bangladesh government delegation will engage in discussions with USTR officials, while the private sector delegation will meet with US exporters to finalize purchase agreements, according to the Commerce Secretary.
