Discussions between Bangladesh and the United States on finalizing a mutual tariff agreement have made notable progress, with both sides aiming to conclude the deal swiftly. The latest round of negotiations took place on Thursday, June 26, in Washington, DC.
According to a statement from the press wing of the Chief Adviser, the Bangladeshi delegation was led by National Security Adviser Dr. Khalilur Rahman, while Brendan Lynch, Assistant U.S. Trade Representative, headed the American side.
Dr. Khalilur Rahman, former head of trade policy at UNCTAD, commented, “We’ve made very good progress in our discussions with the U.S. delegation. Both parties are sincerely working towards finalizing the agreement without delay.”
This potential agreement comes at a critical time for Bangladesh. On April 2, U.S. President Donald Trump announced a 37% retaliatory tariff on goods from several countries, including Bangladesh.
Although the tariff was later suspended for three months, that suspension period ends on July 9, raising concerns among Bangladeshi exporters.
In response to a draft proposal from the U.S., the Bangladesh government has submitted a counter-proposal.
Bangladesh has requested that mutual tariffs be capped at a maximum of 10%, in line with current levels.
Conversely, the U.S. side has proposed that Bangladesh comply with certain domestic U.S. trade laws, which Dhaka believes conflict with international trade norms.
In preparation for the expiry of the tariff suspension, the Bangladesh government is implementing measures to strengthen trade relations with the U.S. One such step includes increasing imports from the U.S. to help reduce the existing trade deficit.
Plans are underway for a government-to-government (G2G) agreement to import 300,000 metric tons of wheat from the U.S. at a premium price.
Additionally, the Ministry of Civil Aviation and Tourism is moving forward with plans to procure aircraft from Boeing, and efforts are being made to streamline the process of importing cotton from the United States.
Sources at the Ministry of Commerce report that Bangladesh is currently ahead of countries like Vietnam, Cambodia, and India in negotiations regarding the retaliatory tariffs.
On June 12, the two countries signed a non-disclosure agreement (NDA) that prevents the disclosure of terms under negotiation.
This was followed by a virtual meeting on June 17, during which both sides agreed to proceed with discussions on a reciprocal tariff arrangement.
A crucial follow-up meeting is scheduled for June 29, which is expected to shape the final terms and timeline of the agreement.
Trade experts view the potential deal as highly significant for Bangladesh’s export sector, especially the ready-made garment industry.
