The trade team from Bangladesh has left for the United States to take part in the third and last round of talks with the Trump administration in an effort to obtain a lower tariff rate on goods from Bangladesh that would go into effect on 1st August.
The deadline for the negotiations is 31st July. Officials are hoping for a better conclusion, but now, Bangladeshi goods entering the US market are subject to a 35% duty.
According to industry analysts, Bangladesh might be able to reach a tariff rate of between 10 and 20%, which is comparable to what has been agreed upon with other nations. Vietnam obtained a 20% tariff, Indonesia and the Philippines about 19%, Japan 15%, the UK 10%, and the EU 15%, for comparison.
Local sources suggest that a tariff of 20% would be most favorable for Bangladesh. Zaidi Sattar, chairman of the Policy Research Institute of Bangladesh, noted that Bangladesh has become a significant garment exporter to the US, but future export prospects hinge on securing a good tariff deal. He also pointed out that Vietnam’s 20% tariff could be jeopardised if Chinese raw materials are transshipped through Vietnam, potentially resulting in a 40% tariff.
Sattar expressed hope that Bangladesh could negotiate a tariff in the 10 to 20% range, with a 20% rate being a likely outcome. In keeping with the optimism, Policy Exchange Bangladesh chairman Masrur Reaz said that Bangladesh will greatly benefit from a 15% tariff accord.
As the final negotiations approach, stakeholders remain cautiously optimistic that Bangladesh will secure a tariff rate that supports its export and import strategies, fostering stronger economic ties with the US.
