A visiting US trade delegation stressed expediting Bangladesh's labour-law amendment and narrowing the bilateral trade gap to pave the way for further reduction in the tariffs on Bangladeshi exports to the American market.
At a discussion Monday in Dhaka, the local apparel leaders mentioned that they would play their part in reducing the trade gap through increased use of US cotton. There is opportunity to increase US cotton-import value by US$1.0 billion within a short time.
The visitors made their observations during their meeting with Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at the US Ambassador's residence in Dhaka. The meeting was led by US Assistant Trade Representative Brendan Lynch, who oversees trade-policy implementation for South and Central Asia.
The BGMEA President, Mahmud Hasan Khan, headed the apparel-industry delegation, accompanied by Vice-President Md Rezwan Selim and Directors Faisal Samad and Mohammad Abdus Salam. The US side also included Tracy Ann Jacobson, the Chargé d'Affaires of the US Embassy.
According to meeting sources, the US delegation made it clear that while the retaliatory tariff on Bangladeshi products had already been reduced from 35 per cent to 20 per cent, a formal bilateral agreement has yet to be signed. They indicated a scope for further tariff reduction, but progress depends on two key dos by Bangladesh: narrowing the trade gap and completing the ongoing labour-law- amendment process.
Speaking to The Financial Express, BGMEA President Mahmud Hasan Khan said steps had already been taken to reduce the trade deficit.
"We've informed the delegation that Bangladesh has started importing cotton from the US. In addition, imports of wheat, LNG, and other products are underway. These measures will help significantly narrow the trade gap," he said.
According to Bangladesh Bank (BB) data, the country imports nearly $4.0 billion worth of cotton annually. Last year, 7.0 per cent of this was imported from the United States.
The value of US cotton imports stood at $270 million last year, while imports had already reached about $217 million by August this year and the share stood at 9.0 per cent.
Bangladesh Textile Mills Association (BTMA) officials say US cotton is expected to account for 12 per cent of total imports this year. They also mention that within the next three years, Bangladesh's annual US cotton-import value could reach nearly $1.0 billion.
On labour-law reforms, the BGMEA president notes that progress has been made through tripartite discussions involving the government, industry, and workers. "We have reached consensus on 122 out of 124 proposed amendments. The remaining two issues will also be resolved through dialogue," he adds.
The US delegation also urged Bangladesh to become a signatory to three key International Labour Organisation (ILO) conventions--198, 155, and 187 - designed to prevent physical and sexual harassment at workplace and strengthen occupational safety and health (OSH) standards.
In response, the BGMEA president said there is no objection from the industry to ratifying these conventions.
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