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A high-level US trade delegation arrives in Dhaka Sunday for a two-day visit focused on negotiating a further reduction in tariffs on Bangladeshi exports to the United States, from the current 20 per cent.
The team, led by Brendan Lynch, Assistant US Trade Representative (USTR) for South and Central Asia, will hold a series of meetings with top Bangladeshi officials to finalise a draft trade agreement and push forward negotiations.
Commerce Secretary Mahbubur Rahman told The Financial Express on Thursday that they are coming to Bangladesh to resume discussions following visit of Bangladesh team to the USA twice.
The rest of discussions will be held here, he said, adding that "it's a diplomatic achievement" that the USA delegation is visiting Bangladesh as part of negotiations.
"It will be very difficult for them to visit 154 countries the US team is on the same negotiations with."
A ministry official has said this discussion will centre on cutting the current 20-percent reciprocal duty on Bangladeshi products to 15 per cent, following progress made in earlier rounds of talks.
The commerce secretary notes that at this time US tariff-cut issue is highly centralised and that officials can discuss the issue.
On August 7, the US government lowered the reciprocal tariff rate on Bangladeshi goods to 20 per cent from 35 per cent after weeks of negotiations. However, no formal agreement was signed at the time. Dhaka has since pressed Washington for a further cut to 15 per cent, arguing that this would help sustain export growth amid ongoing global trade challenges.
"We are optimistic about reaching an agreement during this visit," says a senior commerce ministry official, adding that a draft deal is ready and will be finalized if both sides reach consensus on key points.
During their visit, the USTR team will meet with Chief Adviser of the interim government Prof Muhammad Yunus, Foreign Affairs Adviser Md Touhid Hossain, Foreign Secretary Asad Alam Siam, and senior commerce officials.
The tariff concession involves tradeoffs that prove for enhanced imports from the USA.
According to commerce ministry sources, Bangladesh has pledged a range of measures to help reduce the bilateral trade gap, which currently stands at around US$6 billion.
As part of the tradeoffs, Dhaka has agreed to increase imports from the US by $1.5 billion over the next 12 to 18 months. Under the give-and-take plan, Bangladesh is to purchase of 25 Boeing aircraft worth around $6 billion--the timeline will be set later.
Other commitments include importing 700,000 tonnes of wheat annually over the next five years, even at slightly higher prices. It will also expand imports of military equipment, civil-aviation spares, cotton, edible oils, and LNG under long-term agreements.
The government will streamline the no-objection certificate process to facilitate US investment and introduce a transparent approval framework for smooth two-way capital flow.
Bangladesh has also pledged to provide tariff and non-tariff concessions to increase US exports to its market.
Regulatory and Compliance Reforms: In addition to trade commitments, Bangladesh has agreed several regulatory reforms to address US concerns. These include collaborating with US authorities to combat illegal exports and, if necessary, conduct joint investigations.
The government will make laws and regulations publicly accessible online to ensure transparency and public feedback. It will also remove import-permit requirements for food and agricultural products from the US, accept US electronic bills of lading, and ensure faster customs clearance of US shipments.
Bangladesh will recognise US FDA certifications for medical devices, dairy safety, meat, poultry, processed meat, and egg products. It will also allow imports of dairy products from US cattle, sheep, and goats. Officials say the success of the upcoming visit will depend on whether both sides can agree on the final set of commitments. If negotiations go well, the draft trade agreement will be signed before the delegation departs.
Commerce ministry sources expressed optimism, noting that "the concessions Bangladesh has offered should pave the way for a 15-percent tariff - or potentially lower" - on its exports to the US, boosting competitiveness for local manufacturers, particularly in the garment sector.
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