US delegation due in Dhaka Sunday to discuss reciprocal tariff

Dhaka :  A US trade delegation is arriving in Dhaka tomorrow, Sunday, to discuss the additional 20 per cent reciprocal tariff imposed on Bangladeshi products in the US market.

The three-day visit will be led by Brendon Lynch, the United States assistant trade representative for South and Central Asia.

Diplomatic sources say the US reciprocal tariff for Bangladesh was finalised after discussions in three phases. Although the tariff rate has been fixed, the two sides are yet to ink any agreement over this. A draft agreement exists, but some issues remain unresolved. This visit is primarily intended to finalise the draft by concluding discussions on these matters.

According to the draft schedule, the US delegation will pay a courtesy call on the chief adviser of the interim government, professor Muhammad Yunus, on Monday afternoon.

The delegation will also meet officials from the Ministry of Commerce, led by commerce adviser Sheikh Bashiruddin and commerce secretary Mahbubur Rahman.

Additionally, members of the US delegation will pay a courtesy call on national security adviser Khalilur Rahman and foreign secretary Asad Alam Siam. The delegation is also scheduled to meet with Bangladeshi business representatives and other relevant stakeholders.

Diplomatic sources have said that the issues yet to be finalised include rules of origin, GM food in agricultural products, and the full list of US products that will receive tariff exemptions.

In addition, discussions are expected on creating a more favourable environment in Bangladesh for US investors, sustainable development in the industrial sector, protection of workers, and the unrestricted access of Bangladeshi products to the US market.

Donald Trump assumed office for a second term as US president on 21 January. Two months later, on 2 April, he announced retaliatory tariffs at varying rates on products from 70 countries. Many critics have described Trump’s move as a form of ‘trade war’.

Initially, on 2 April, a 37 per cent retaliatory tariff was imposed on Bangladeshi products, but this was suspended for three months. On 8 July, the US president reduced it to 35 per cent. Currently, Bangladesh exports goods to the US with an average tariff of 15 per cent. With the new retaliatory tariff of 20 per cent, the total tariff rate has risen to 35 per cent.