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Chief Adviser Prof Muhammad Yunus urges US President Donald Trump to postpone the imposition of 37-percent reciprocal tariff on Bangladeshi exports for three months, allowing his government time to implement measures for augmenting imports from the United States.
As the head of interim government wrote Monday to the US president, the commerce ministry in a separate letter dispatched to the US trade department detailed a slew of trade concessions, including zero-rated duty on more imports from that country.
"I most sincerely hope that you will grant this request," Prof Yunus, a Nobel-laureate economist who also enjoys state accolades from the United Sates, says in the letter, according to the Press Secretary to Chief Adviser, Shafiqul Alam.
He was talking to the media at Hotel Intercontinental at a press briefing on the sidelines of an investment summit that got off to a formal start on the day to mainly woo in foreign investors with rewarding bets.
The Trump administration announced the 37-percent tariff based on its calculation that Bangladesh imposes on average 74 per cent of tariffs on US imports-leading to a halved rate under the policy of reciprocity .
In response, Prof Yunus directly addressed the letter to President Trump, while the Commerce Adviser soon came up with a separate letter to the US Trade Representative (USTR) outlining Bangladesh's trade commitments in greater detail.
"I write to assure you that we in Bangladesh will take all necessary actions to fully support your trade agenda," writes Prof Yunus, noting that Bangladesh was the first country to take such a proactive step following President Trump's inauguration.
He referred to the visit of High Representative Dr Khalilur Rahman to Washington, DC, in February to demonstrate Bangladesh's intent to substantially increase American exports to the country's fast-growing market of 170 million people.
Since then, officials from both countries have been working closely to identify specific areas for enhanced cooperation.
Among the key initiatives is a multi-year agreement under which Bangladesh will import liquefied natural gas (LNG) from the United States-making it the first country to do so following the Trump administration lifting the freeze on LNG- export permits.
The centrepiece of Bangladesh's approach involves significantly boosting imports of US agricultural products such as cotton, wheat, corn, and soybean-moves expected to benefit American farmers.
Bangladesh also maintains the lowest tariff rates on most US exports in South Asia, and Prof Yunus indicates that further reductions are under consideration on top American export items such as gas turbines, semiconductors, and medical equipment.
To enhance US market access, the interim government plans to build dedicated duty-free bonded warehouses for cotton and undertake several trade-facilitation reforms.
These include eliminating certain testing requirements, rationalising packaging, labelling, and certification processes, and simplifying customs procedures and standards.
"Ever since, our officials have been working with their US counterparts to identify specific actions to rapidly increase American exports to Bangladesh. Our Commerce Adviser will correlate with the US Trade Representative about details of our actions," Prof Yunus mentions.
"Bangladesh will take all necessary actions to fully support your trade agenda," he reaffirms.
On its part, the commerce ministry Monday sent a letter to the United States Trade Representative (USTR), signed by Commerce Adviser Sk. Bashir Uddin, outlining Bangladesh's trade action plans and commitments in greater detail.
It says Bangladesh wants to include 100 more products in the zero-tariff schedule.
In the letter the adviser says, "Our government is examining ways to reduce tariff rates and eliminate all kinds of non-tariff barriers and has initiated reforms to enhance mutually beneficial trade for both countries."
The reform initiative underway includes import-policy order, simplification of customs procedure, enforcement of intellectual-property rights, protecting trademarks, patent rights and so on.
"We are also planning long-term LNG deal with US counterpart and set to propose US automakers to set up car-manufacturing plants and inspiring private entrepreneurs to import soy, wheat, cotton etc," the letter reads.
"We will encourage US private equity access to healthcare and other service sectors of Bangladesh. I am confident these steps among others will contribute to narrowing gaps between our bilateral trades."
He also mentions that since the withdrawal of preferential access of Bangladeshi exports to the US, "your esteemed government has been imposing 15-percent tariff on all goods from Bangladesh while we impose a weighted average tariff on US products at 6.10 per cent where raw cotton and steel scrap face tariff rate at 0 per cent and 1.0 per cent respectively".
Bangladesh, one of the largest importers of US cotton, manufactures readymade garments, and exports facing higher tariffs in the United States. Currently, Bangladesh's Tariff Schedule contains 190 product lines with zero tariff and another 100 product lines are being considered to be included in the zero-tariff schedule, it mentions.
The commerce adviser says Bangladesh is committed to opening dialogue and collaboration to remove any barrier to the U.S. exports to Bangladesh, if any, and to resolve trade disputes and promote mutual prosperity.
The Trade and Investment Cooperation Forum Agreement (TICFA) was signed on 25 November 2013 between Bangladesh and the US to identify and work jointly to eliminate the hindrances to trade and investment between the two countries, according to the ministry. The adviser adds: "We have already held successive meetings with the trade wing of the US embassy in Bangladesh to identify barriers to US trade with Bangladesh and agreed a number of measures to resolve."
Trade adviser Sheikh Bashir told reporters in the evening at his secretariat office that the 100 products that have been mentioned in the letter sent to USTR to be brought under the new zero-tariff schedule are basically all US products. This will increase US exports to Bangladesh.
He said currently 75 per cent of the imports Bangladesh make from the US are cotton, scrap, soy and petroleum products. "We are trying to remove the tariff and non-tariff barriers that the US is facing in exporting other products to Bangladesh, knowing what kind of tariff and non-tariff barriers it is facing, so that our imports increase."
Since Bangladesh is on the path of LDC graduation, the country has to do all this as part of trade liberalization, he said.
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