Further US tariff cut likely as trade deficit narrowing

FE REPORT
Washington has assured Bangladesh of considering further reduction in the current 20-percent retaliatory tariff on Bangladeshi products if the bilateral trade deficit continues to narrow.
And the trade gap with the United States has already been on the decline, Commerce Adviser of the interim government SK Bashir Uddin Sunday disclosed the developments after talks with a US delegation in Dhaka.
Speaking to reporters after the meeting with the visiting delegation, he said Washington expressed satisfaction with the recent decline in the trade gap to around $6 billion, and signaled its readiness to ease tariffs further as progress continues.
The delegation, led by Deputy Assistant US Trade Representative (USTR) Brendan Lynch, arrived in Dhaka earlier in the day on a three-day visit for finalising discussions on a trade agreement.
During their stay, the US team will also have a meeting with Chief Adviser's Office of the interim government, Foreign Affairs Adviser Md Touhid Hossain and Foreign Secretary Asad Alam Siam.
Among the senior Bangladeshi officials present at Sunday's talks were National Security Adviser Dr Khalilur Rahman and Commerce Secretary Md Mahbubur Rahman.
Bashir Uddin said the discussions focused on progress made on Bangladesh's commitments to increase imports from the United States as part of efforts to reduce the trade imbalance. The swaps include pledged purchases of agricultural products, energy supplies, and aircraft.

"There has been good progress on these commitments, which has been acknowledged by the US side," he told the press about breakthroughs in sight over the issues of high concern regarding Bangladesh's single-largest export market.
He clarifies that while Dhaka aims to bring the tariff down to 15 per cent, no specific agreement was reached on that rate during the first-day talks. Instead, discussions centred on a gradual reduction in tariffs tied to improvements in the trade balance.
The President Trump-dictated 'reciprocal tariffs' were first imposed by Washington at 37 per cent for Bangladesh, later lowered to 35 per cent. After several rounds of talks, the US announced on July 31 that the duty will be pared down to 20 per cent, effective from August 7.
Bangladesh is now pushing for reducing the tariff rate further to 15 per cent to improve the competitiveness of its exports on the US market.
Commerce officials have said the current US visit follows Dhaka's request for more time to negotiate, and that both sides are working to secure a mutually beneficial outcome.
A draft trade agreement has already been prepared based on earlier discussions, according to ministry sources. It will be revised and finalised once consensus is reached on the remaining issues during this round of talks.
The commerce adviser said Bangladesh's ultimate objective is to secure a deal that not only lower tariffs but also strengthen trade relations.
"The US has assured us that as the trade deficit narrows, they will continue to consider further reductions," said Mr Bashir Uddin.
"Our goal is to reach an agreement that will support Bangladeshi exporters and promote a more balanced trade relationship between the two countries."
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