In response to a US proposal that implied Bangladesh must embrace American trade regulations, which authorities say is unacceptable under international trade principles, the government of Bangladesh has suggested capping reciprocal tariffs at a maximum of 10%.
Since early April, when President Donald Trump imposed a 37% reciprocal tariff on Bangladesh, which was later halted for three months, the interim government has been negotiating with the United States to negotiate a more equitable agreement.
In order to finalise the document, Khalilur Rahman, the national security adviser for the interim government, met with US Trade Representative (USTR) officials on 26th June. The accord may be signed during another crucial meeting scheduled for 29th June.
The development comes after Bangladesh and the US inked a non-disclosure agreement on June 12th about reciprocal tariffs, the terms of which neither government is allowed to openly reveal. On 17th June, both countries agreed to move forward with the Reciprocal Tariff Agreement after the US delivered a draft of it earlier.
The US’s proposed Reciprocal Tariff Agreement draft requires Bangladesh to follow US domestic regulations in international trade, according to commerce ministry officials. Bangladesh disagreed, though, and on 25th June, it offered Khalilur a counterproposal, which he then gave to the USTR. In particular, Bangladesh’s counter-proposal asks that the reciprocal tariff that is now applied to it be restricted to a maximum of 10%.
Additionally, with the tacit approval of USTR authorities, Bangladesh formally submitted a request for a Free Trade Agreement (FTA). Sk Bashir Uddin, a commerce adviser, said TBS on Wednesday that the US has not consented to clinch a free trade agreement with Bangladesh.
Commerce Secretary Mahbubur Rahman said that the Bangladeshi Government is always involved in the process of the US imposing new duties. All of the USTR’s correspondence is being promptly answered. The draft Reciprocal Tariff Agreement has already received input from Bangladesh. The scope and date of the Reciprocal Tariff Agreement will be decided at a special meeting with the USTR on 29th June.
