Bangladesh Seeks Lower Tariffs in Talks with US Trade Officials

Bangladesh is making significant strides in its trade negotiations with the United States, as discussions held in Washington have opened avenues for reduced tariffs and enhanced access for its textile and apparel exports. Chief Adviser Muhammad Yunus emphasized that these talks represent “an important step forward” in fostering a mutually beneficial economic partnership between the two nations.

During these discussions, US Trade Representative Ambassador Jamieson Greer acknowledged the request made by National Security Adviser Dr Khalilur Rahman to consider lowering Bangladesh’s current reciprocal tariff rate of 20%. This potential reduction could align Bangladesh’s tariff treatment more closely with that of its regional competitors, expanding opportunities for its vital garment sector, which significantly contributes to the country’s export revenue and employment.

Proposed Tariff Arrangement and Its Benefits

Yunus articulated that officials also explored a preferential arrangement that would grant Bangladesh tariff-free access to the US market for textile and apparel exports equivalent to its imports of US-produced cotton and man-made fibre textile inputs. This reciprocal scheme, assessed on a square-metre basis, was characterized by officials as a “win-win” approach, aimed at bolstering supply-chain connections between the two countries.

“This creative, win-win approach strengthens bilateral trade, supports Bangladeshi manufacturers and workers, and deepens supply-chain ties with U.S. producers,” Yunus stated. He noted that the discussions reflect increasing momentum and goodwill in US-Bangladesh economic relations, indicating a promising new chapter for Bangladesh’s global trade prospects.

The interim government of Bangladesh lauded the proposal as a mutually advantageous strategy that would reinforce bilateral trade ties and enhance employment and manufacturing within the country.

In 2024, trade between the United States and Bangladesh was estimated at $12.4 billion, representing a three percent increase from the previous year. US exports to Bangladesh amounted to $2.3 billion, while imports from Bangladesh reached $8.4 billion, resulting in a US goods trade deficit of $6.1 billion.

As Bangladesh continues to seek improved trade terms, the outcome of these discussions could have a lasting impact on its economy and its position in the global textile market.