Bangladesh was set to conclude its final-round negotiations with the United States on Thursday on hopes for an agreement providing cut-down duties on Bangladeshi exports.
Officials at the Ministry of Commerce said the outcome of the wrapping-up negotiations would determine the final tariff rate, which is expected to be formally announced soon.
According to officials at the Bangladesh Embassy in Washington, the concluding session of the third round of negotiations would take place between 11:00pm and 1:00am Bangladesh time.
Over the past three days, both sides had engaged in intensive discussions to finalise the terms of a trade agreement that could pave the way for bending the 35-percent tariff wall put up against Bangladeshi products.
The Bangladesh delegation includes Commerce Adviser SK Bashir Uddin, National Security Adviser Dr Khalilur Rahman, Commerce Secretary Md Mahbubur Rahman, WTO Cell Director General Dr Nazneen Kaiser Chowdhury, and senior officials from the Bangladesh Embassy in Washington. On 2 April, the Trump administration imposed a steep 37-percent reciprocal tariff on Bangladeshi goods, ostensibly citing trade gap. This was later revised to 35 per cent on 07 July, according to an official letter sent by US President Donald Trump to Chief Adviser Dr Muhammad Yunus, stating the new rate would take effect on 01 August.
In recent developments over the tariff turbulence in global trade, President Trump announced 25-percent tariff on Indian exports and penalties on Russia for supplying fuel and LNG to India. Meanwhile, the tariff on Vietnamese exports has reportedly been reduced from 46 per cent to 20 per cent.
Commerce ministry officials and representatives from the Bangladesh Embassy said most issues had been resolved in talks with the Office of the United States Trade Representative (USTR). The final-day discussions are expected to iron out remaining differences.
"The tariff rate on Bangladeshi exports is likely to be reduced, but the final decision will rest with President Trump," a senior commerce ministry official told The Financial Express.
Before departing for Washington, DC, Commerce Secretary Mr Rahman stated that both sides had agreed in principle to sign the agreement, but it would not be finalised before 01 August. The final draft must first receive approval from the Advisory Council in Dhaka and undergo legal vetting by the Ministry of Law.
According to data from the Export Promotion Bureau (EPB) and Bangladesh Bank, the United States is Bangladesh's largest export destination for apparel, accounting for around $8.0 billion in exports annually. Imports from the US currently stand at approximately $2.0 billion.
To reduce the existing trade imbalance and secure tariff concessions, the government is taking steps to increase imports from the US. The tradeoff package includes the planned purchase of 25 Boeing aircraft, import of 700,000 tonnes of wheat annually, and expanded private-sector imports of cotton, soybeans, wheat, and pulses.
Earlier this week, a delegation of Bangladeshi business leaders, including Bangladesh Textile Mills Association (BTMA) President Showkat Aziz Russell, City Group Managing Director Md. Hasan, Meghna Group Industries Chairman and Managing Director Mostafa Kamal, T K Group of Industries Managing Director Tayab Mohammed Abul Kalam and LPG Operators Association of Bangladesh (LOAB) president Mohammed Amirul Haque, left for the US to meet American counterparts and explore new import opportunities.
They are also expected to sign a series of memorandums of understanding (MoUs) aimed at enhancing bilateral trade.
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