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Speakers at a roundtable discussion on Saturday said Bangladesh must strengthen its trade negotiation capacity, ensure policy coordination, and engage with major partners like the United States to tackle growing challenges in global trade.
They stressed the need for economic diversification and institutional reforms ahead of the country's graduation from LDC status. Shifting global dynamics, rising protectionism, and complex tariff structures demand a strategic, well-prepared approach to secure Bangladesh's trade interests, they noted
The International Business Forum of Bangladesh (IBFB) organised the event titled "Revamping USA-Bangladesh Trade" at its conference room in Tejgaon, Dhaka.
Dr Anisuzzaman Chowdhury, Special Assistant, Finance Division, Ministry of Finance, attended the programme as the chief guest, while IBFB President Lutfunnisa Saudia Khan chaired it.
Speaking on the occasion, Dr Chowdhury stressed the need for policy coordination, policy independence, and effective negotiation strategies to meet the evolving challenges of global trade.
He said the USA would continue to dominate global trade, and Bangladesh must establish a strong lobbying presence in Washington while seeking new traction to cope with the changed landscape.
"International circumstances are now different. We have to build self-confidence and bring diversification into our economy. The government will form a specialised trade negotiation body ahead of graduation," he added.
Dr Zaidi Sattar, Chairman and CEO of the Policy Research Institute of Bangladesh (PRI), presented the keynote paper.
Distinguished speakers included Professor Mustafizur Rahman, Distinguished Fellow at the Centre for Policy Dialogue (CPD); Syed Ershad Ahmed, President of the American Chamber of Commerce in Bangladesh; and Dr Mahfuz Kabir, Research Director at the Bangladesh Institute of International and Strategic Studies (BIISS).
In his keynote, Dr Sattar noted that a baseline tariff of a flat 10 per cent across all imports is currently in place, which he described as shocking.
He said variable tariff rates are applied to the top 60 trading partners, with higher tariffs imposed on nations labelled as "Worst Trade Offenders".
"For example, the US imposes a 30 per cent tariff on China, while China applies a 10 per cent tariff on US goods; tariffs on Canada and Mexico stand at 25 per cent."
Recommending a negotiation-based approach, he proposed engaging the US to reduce tariffs on key Bangladeshi exports such as agricultural products, machinery, and automobiles.
He also suggested focusing on low-revenue items-such as cotton and scrap metal, which already face near-zero tariffs-on a Most Favoured Nation (MFN) basis, and reducing tariffs on non-RMG items like footwear to address anti-export bias.
Dr Sattar said Bangladesh could benefit from trade diversion caused by China's 54 per cent tariff burden, but warned that global GDP could shrink by 1 per cent and trade by 3 per cent-posing a particular threat to Asia.
Regarding the RMG sector, he advised collaborating with buyers to share increased costs, highlighting that Bangladesh's limited bargaining power makes price adjustment critical.
Professor Mustafizur Rahman emphasised the importance of strengthening negotiation capacity and said that while signing Free Trade Agreements (FTAs) or Preferential Trade Agreements (PTAs) with the US is possible, it will not be easy.
"US tariffs are labelled as reciprocal, but in reality, they are irrational and one-sided. We need to raise the tariff issue within the TICFA platform, but we are not yet ready for that," he said.
Presiding over the session, IBFB President Lutfunnisa Saudia Khan said the USA is a major trade partner for Bangladesh, particularly in the Ready-Made Garments (RMG) sector.
She observed that the suspension of GSP benefits and rising protectionist policies in recent years have undermined competitiveness in key sectors like garments, leather, and light manufacturing-hurting export performance, slowing job growth, and affecting investor sentiment.
Dr Mahfuz Kabir of BIISS said TICFA is the appropriate platform to initiate negotiations.
"I believe that signing agreements like IPF or FTA will not be effective," he added.
The discussion was moderated by M.S. Siddiqui, Chairman of IBFB's Governmental Relations and Advocacy Committee.
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