BM Desk : The office of the U.S. Trade Representative has finally allowed time for the third round of countervailing duty negotiations. Dhaka will host the government-level meeting with Washington on Tuesday. Commerce Secretary Mahbubur Rahman told the media Thursday evening that the tariff issue will be discussed in the meeting with the Office of the United States Trade Representative (USTR) on July 29.The meeting can take place in person or virtually. The USTR has been notified of this. A precise announcement will be made shortly. The group from Bangladesh will travel to Washington prior to any in-person meetings.
However, Trade Advisor Sheikh Bashiruddin stated yesterday morning in response to inquiries from reporters at the Secretariat that there is a possibility of an online meeting with the United States on Friday (today).
In the meantime, US President Donald Trump has announced that countervailing duties will take effect on imports from various nations starting August 1, with a minimum rate set at 15 percent and a maximum of 50 percent. The Trump administration has already lowered the additional tariffs previously imposed on certain countries. The most recent adjustment occurred last Wednesday, when Japan’s tariff was decreased from 25 percent to 15 percent. Vietnam, a key competitor of Bangladesh in the ready-made garment sector, has also reduced its tariff from 26 percent to 20 percent. Separate agreements have been established with the countries that received these reductions, primarily aimed at boosting imports from the United States to those nations.
As of now, no agreement has been finalized with Bangladesh. Ongoing negotiations are in progress. An announcement has been made regarding a 35 percent tariff on Bangladesh effective August 1, which the country is attempting to negotiate down. Bangladesh has already signed a memorandum of understanding to enhance wheat imports from the United States in exchange for a discount. Last Wednesday, the Government Procurement Advisory Committee convened and approved a proposal to purchase 220,000 tons of wheat at an additional cost through the G2G method.
Furthermore, Bangladesh has committed to a long-term agreement to increase LNG imports from the United States and is interested in acquiring aircraft from that country. Additionally, there is a commitment to maintain zero tariffs and low tariffs on major product imports from the United States. However, Bangladesh did not agree to certain conditions beyond trade, security, and geostrategic matters during previous discussions.
Trade Advisor Sheikh Bashiruddin responded to journalists’ inquiries yesterday, stating that the government is working to reduce US tariffs. Nevertheless, he emphasized that no actions will be taken that compromise Bangladesh’s interests. He mentioned, ‘We sent a letter to the US Commerce Secretary the day before yesterday outlining our position. We are now awaiting a response and an invitation regarding that letter.’
“There will be very easy tariffs for certain countries,” Trump stated. It was “essential” to negotiate with the European Union. Lower tariffs will be applied to US goods if the European Union agrees to allow US companies to operate there.
