Bangladesh has renewed its call for the United States to reduce countervailing tariffs on Bangladeshi products from 20 percent to at least 15 percent, but US officials have said such concessions will depend on a visible narrowing of the bilateral trade gap.
The issue came up on Sunday at a meeting between Bangladesh’s Ministry of Commerce and a visiting US delegation led by Assistant Trade Representative Brendan Lynch. The delegation is in Dhaka to review progress on a draft trade agreement and other bilateral issues.
On Aug. 7, President Donald Trump signed an executive order reducing US countervailing tariffs on Bangladeshi goods from 37 percent to 20 percent. Dhaka now wants the rate lowered further, and Trade Adviser Sheikh Bashiruddin has been leading the negotiations on behalf of Bangladesh.
Officials said the Commerce Ministry formally requested more time with the US Trade Representative’s (USTR) office to discuss further tariff cuts. Lynch’s visit follows that request.
During Sunday’s meeting at the ministry’s conference room, both sides reviewed progress on the draft trade agreement, including identifying areas needing further work. The tariff issue received “special attention,” according to officials, with the US side reiterating that any reduction below 20 percent would have to wait until the US–Bangladesh trade deficit shrinks significantly.
National Security Adviser Khalilur Rahman, Trade Secretary Mahbubur Rahman, and other senior officials were also present. According to meeting sources, both sides discussed adjustments to the draft agreement that could be finalized later if consensus is reached.
Speaking to reporters after the meeting, Sheikh Bashiruddin said Bangladesh hoped for “some reduction” in the additional 20 percent tariff and that discussions had been “friendly.” He added that commitments to purchase more US agricultural, energy and aviation products — part of a plan to reduce the trade deficit — were reviewed, and progress so far had been “satisfactory.”
“If we can successfully implement our plan to narrow the trade deficit, the prospects for a tariff cut will become stronger,” Bashiruddin said, noting the possibility of a future reciprocal tariff agreement with Washington.
The US delegation is also scheduled to meet the Chief Adviser of Bangladesh’s interim government, Foreign Affairs Adviser Md Touhid Hossain, and Foreign Secretary Asad Alam Siam during its visit, officials said.
