Agreement on Reciprocal Trade: Bangladesh urged to speed up reform action

Bangladesh will move to remove long-standing trade barriers and reform regulatory barriers as part of its own economic necessity, Commerce Minister Khandakar Abdul Muktadir said on Tuesday.

"We are left with no other option but to remove the bottlenecks," he said, responding to US calls for faster implementation of the Agreement on Reciprocal Trade (ART).

Addressing a high-level luncheon and policy dialogue hosted by AmCham Bangladesh at Sheraton Dhaka, the minister said the country was committed to opening up its market, simplifying business procedures and creating a more investment-friendly environment for both local and foreign investors.

Responding to concerns raised at the meeting by US Ambassador in Dhaka Brent T. Christensen over non-tariff barriers such as radiation and pesticide tests, Mr Muktadir said such obstacles affect not only American businesses but investors and exporters from across the world.

He added that opening up would make the country and its market more competitive and conducive to investment. "And we are pledge-bound not to please the US; we are pledge-bound for our own existence to open up-and we will do so."

The US ambassador stressed the need for legal and regulatory reforms to implement the ART, saying the agreement preserves Bangladesh's access to the American market with a competitive 19 per cent tariff, down from 35 per cent without the deal.

He said Bangladesh needs to pass necessary legislation, reform regulations that create unnecessary barriers for US companies, train customs officials and regulators on new procedures, establish one-stop services for foreign investors and ensure clear approval timelines.

"We have an excellent framework in ART and incredible opportunities in these sectors and more. Now we need action," he said.

The event was presided over by AmCham Bangladesh President Syed Ershad Ahmed.

Mr Christensen explained the purchase agreements, including $3.5 billion worth of US agricultural products and $15 billion in energy products, and said: "If you are going to sell to us, you need to make an effort to buy from us."

He added that these are not aid packages but commercial deals that create jobs and opportunities in both countries.

Describing Bangladesh as a "very tough place to do business", which he said was no secret, the US envoy called for policy predictability, stronger contract enforcement and modernised business practices.

Highlighting the opportunities of deeper partnership with the United States, he said Bangladesh requires significant investment in the energy sector, an estimated $180 billion by 2050, to meet rising demand and support economic growth.

He noted that Chevron currently provides half of Bangladesh's natural gas supply, while US companies already contribute more than half of the country's power generation.

The Commerce Minister also sought continued US support for Bangladesh's smooth graduation from least developed country (LDC) status, noting that Dhaka has proposed extending the transition period and is targeting November 2029 for graduation.

Regarding the US trade investigation under Section 301, he said Bangladesh's export capacity is demand-driven, particularly in the readymade garment (RMG) sector, where production is strictly order-based for global brands and reflects international demand rather than excess capacity.

In reality, many factories are operating below capacity because of energy and infrastructure constraints rather than overproduction, he said, adding that Bangladesh's exports-primarily low- to mid-range apparel-complement rather than compete with US products.

The minister also raised concern over pharmaceutical exports saying the entry into the US market is still restricted by the intricate, expensive, and time-consuming regulatory processes. "There is potential to improve the coordination between pertinent authorities, expedite the approval process, and simplify procedures," he noted.

munni_fe@yahoo.com