Bangladesh plans to appeal the U.S. reciprocal tariff while enhancing imports from the U.S. to reduce a significant trade deficit. Chief Adviser Muhammad Yunus will engage directly with U.S. officials, following an emergency meeting response to the 37 percent tariff on Bangladeshi exports. The country aims to address concerns through comprehensive reforms while managing competitive trade challenges.

Bangladesh has announced plans to appeal for a review of the newly implemented reciprocal tariff imposed by the United States as part of ongoing global trade tensions. To mitigate the impact of this tariff, Dhaka aims to enhance imports from the United States, striving to alleviate the trade deficit that has raised concerns leading to these new tariffs. Chief Adviser Muhammad Yunus of the interim government will maintain direct communication with U.S. officials to address this crucial issue.

The announcement comes after an emergency meeting hosted by the Chief Adviser at the state guest house Jamuna, just two days post-imposition of a 37 percent tariff on Bangladeshi exports. Khalilur Rahman, the Chief Adviser’s representative, noted that the tariff rise was somewhat anticipated. Currently, exports from Bangladesh face a 15 percent tariff rate, particularly affecting the ready-made garment sector, which constitutes over 80 percent of the nation’s exports to the United States.

Khalilur Rahman shared that he had previously visited the United States in February to discuss similar concerns with U.S. officials. The country remains engaged with Washington on this matter, emphasizing collaborative approaches to resolve issues. Key figures in this dialogue include Commerce Adviser Sheikh Bashir Uddin, special envoy Lutfey Siddiqi, and Bangladesh Investment Development Authority’s executive chairman Ashik Chowdhury.

To counter a trade gap exceeding $6 billion, the government is reviewing its import dependencies on primary energy, soya beans, metal scraps, cotton, and capital machinery. In 2024, Bangladesh exported approximately $8.4 billion in goods to the U.S., predominantly readymade garments, while U.S. exports to Bangladesh totaled $2.2 billion, illustrating a significant trade deficit.

The new tariff structure places Bangladesh at a competitive disadvantage compared to nations such as China and Vietnam, which face respective tariffs of 34 percent and 46 percent. Despite the challenges, the commerce adviser acknowledges potential opportunities within the new tariff framework. Under the leadership of Lutfey Siddiqi, the government plans to integrate comprehensive reforms addressing customs policy and intellectual property rights into their approach towards U.S. concerns.

The immediate baseline tariff increase commenced on Saturday, with additional rates to take effect from April 9. The executive chairman of BIDA indicated a measured approach in presenting the appeal for a tariff review, ensuring thorough consultations with relevant stakeholders are completed. The meeting included discussions with other senior advisors and officials, including Foreign Affairs Adviser Md Taouhid Hossain and Bangladesh Bank Governor Dr. Ahsan H Mansur.

In summary, Bangladesh is preparing to appeal for the reevaluation of the U.S. tariff affecting its exports. The country seeks to enhance its imports from the U.S. to address the trade deficit and sustain its economy, particularly in the garment sector. Policymakers are cognizant of the challenges posed by the new tariff regime but also recognize possible opportunities through strategic reforms. Careful consideration and consultations will guide the formal appeal process.

Original Source: www.newagebd.net

Related posts:

Bangladesh to Appeal New US Tariff Amid Trade Deficit Concerns U.S. Imposes 37% Tariff on Bangladeshi Exports, Raising Concerns Bangladesh Faces 37% Tariff Under New Trump Trade Policy US 37 Percent Tariff on Bangladesh: Economic Concerns and Strategic Responses