Businesses on Saturday called for analysing US priorities and objectives related to its new tariff regime and devising fast, strategic and coordinated negotiations to navigate the challenges.
They also suggested addressing the challenges identified by USTR report like high tariffs, investment hurdles, non-tariff barriers, bureaucratic tangles, corruption and lack of transparency to offset post-graduation hiccups.
They also called for upping local industries' competitiveness by addressing internal issues like energy crisis, high finance and cost of doing business, improving logistic and infrastructure, and diversifying export markets.
The observations and suggestions were made at a roundtable styled 'US Tariffs on Bangladesh's Exports: Reciprocal Strategies and Way Forward for Negotiations' hosted by the Bangladesh Textile Mills Association (BTMA) in the capital on Saturday.
Chaired by BTMA president Showkat Aziz Russel, BGMEA administrator and Export Promotion Bureau vice-chairman Anwar Hossain, and Gono Sanghati Andolon chief coordinator Zonaed Ahmed Saki, among others, spoke there.
Policy Exchange Bangladesh chairman M Masrur Reaz, who joined the event virtually, said the US paused for 90 days with a baseline additional 10-per cent duty except China, but this yet unresolved issue could be scrambling again.
"Bangladesh needs to go for swift action," he said, stressing the need to understand the priorities of the US tariff regime.
Bangladesh, whose growth is led by export, can increase cotton import to narrow some trade gap. He, therefore, suggested identifying sector-based impact and entry points of negotiations and market-based engagement.
Mr Reaz also recommended engaging with brands and buyers on how to absorb the tariff burden and devise its common and shared positions.
ACI Healthcare Ltd managing director and CEO M Mohibuz Zaman said the local pharma sector, which meets 98-per cent domestic demand for medicine, would be severely affected after graduation.
Medicine prices might go up during the post-graduation period, he added.
About the US tariff, Mr Zaman said, "We need to understand their (US) objectives and take measures accordingly to negotiate."
According to Bangladesh Plastic Goods Manufacturers and Exporters Association president Shamim Ahmed, the objective of US is to reduce tariffs on goods as it cannot manufacture goods at a high cost of $25 per hour.
Labour cost is five to six times higher in the US than in Bangladesh and the former can make higher profit by manufacturing goods here, he said suggesting that Bangladesh should raise the issue in the negotiation round.
Besides, the China-US tariff and trade war would also bring a big opportunity for Bangladesh, he said stressing preparations by enhancing capacity, skill and design to compete with Chinese goods.
Talking over LDC graduation challenges, he said most plastic goods are copied and the country cannot sell such products after graduation.
Bangladesh Chamber of Industries president Anwar ul Alam Chowdhury Parvez says Donald Trump has put global economy in an unprecedented situation through pausing the issue for three months.
It shows the world cannot go back to the previous system due to the geopolitical or geo-economic situation while the WTO arbitration system remains ineffective, he said calling for political negotiations to work out how to serve US interests either by increasing imports or by addressing non-tariff barriers, bureaucratic tangles and other issues.
The industrialisation of import substitute industry is one of US objectives, Mr Parvez said Bangladesh should work out what it could offer and how to raise imports.
Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) administrator Hafizur Rahman says US tariffs are imposed only on goods and not on services, so Bangladesh should place the issue during negotiations.
He further suggested increasing intra-regional trade by signing free trade agreement (FTA) and bilateral deals.
Bangladesh Association of Banks chairman Abdul Hai Sarkar called for addressing internal weaknesses that create hurdles like poor logistic and infrastructure, bureaucratic tangles, high cost of doing business, required policy reforms, and improving law and order to increased competitiveness of local export-oriented industries.
He also stressed for the government's preparedness to face any unseen storm like the new US tariff regime.
The businesses also suggested establishing bonded warehouse facility for US cotton storage in Bangladesh to help reduce import lead time and eliminate non-tariff barriers, thereby facilitating easier imports from the US.
They also proposed to seek duty benefit for garment goods produced with US cotton, increase exports by product diversification and encourage US entrepreneurs to invest here.
In addition to the government's ongoing efforts in tariff discussions and FTA negotiations, they also highlighted the need to engage the private sector of the US in the dialogue.
munni_fe@yahoo.com
