Bangladesh offers duty-free access for 100 more US products to cut trade gap

Bangladesh has proposed granting duty-free access to 100 more US products in a bid to reduce the bilateral trade gap with the United States. Commerce Adviser Sk Bashir Uddin made the proposal in a letter sent to the Office of the United States Trade Representative (USTR) on Monday.

According to sources in the Ministry of Commerce, Bangladesh has already offered duty-free access to 190 US products unilaterally. With the addition of the proposed 100 products, the total number of duty-free items would rise to 290.

The letter pointed out that since the US revoked the Generalized System of Preferences (GSP) for Bangladesh, Bangladeshi exports to the US have been subject to an average tariff of 15 percent. In contrast, the average tariff imposed by Bangladesh on US goods is just 6.1 percent. Key US export items like raw cotton and iron scrap are taxed at 0 percent and 1 percent respectively.

The US is a major supplier of cotton to Bangladesh’s readymade garment industry. However, the high US tariffs on Bangladeshi garments and other products have undermined Bangladesh’s competitiveness in the American market, the letter noted.

The move follows a recent imposition of a 37 percent countervailing duty on Bangladeshi exports by the US, which came into effect last Thursday. In response, Chief Adviser Dr Muhammad Yunus sent a separate letter to US President Donald Trump, urging him to suspend the tariff for three months.

In his communication with the USTR, Commerce Adviser Bashir Uddin referred to the 2013 Bangladesh-US Trade and Investment Cooperation Framework Agreement (TICFA), under which both countries agreed to reduce trade and investment barriers. He said several rounds of discussions had already taken place with the US embassy’s commercial wing.

He also mentioned that Bangladesh has undertaken a range of trade policy reforms, including tariff reductions, elimination of non-tariff barriers, streamlined customs procedures, and enhanced protection of intellectual property rights.

The adviser further noted Bangladesh‍‍`s efforts to attract US investment in sectors such as energy, food and agriculture, healthcare, and services. This includes long-term LNG proposals and invitations to US automakers to establish manufacturing plants in the country.

He expressed hope that the new proposal and continued dialogue would help strengthen trade ties between the two countries and benefit their citizens.