IBFB ROUND TABLE: Strengthening USA-Bangladesh trade ties imperative
Business Report :
Experts stressed on strengthening USA-Bangladesh trade ties in a round table organised by the International Business Forum of Bangladesh (IBFB) on Saturday.
The roundtable discussion titled “Revamping USA-Bangladesh Trade” on Saturday at IBFB conference room in Tejgaon, in Dhaka.
Dr. Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser, attended the event as the chief guest, with IBFB President Lutfunnisa Saudia Khan presiding over the session.
In his remarks, Dr. Chowdhury emphasized the importance of policy coordination, policy autonomy, and the development of effective negotiation strategies to address evolving global trade challenges.
He stated that the United States would play a dominant role in shaping world trade, urging the creation of a strong lobbying mechanism with the US and the need to adapt to the changing global trade environment.
In a press release, Dr. Chowdhury also noted that the international context has changed, requiring greater self-confidence and a commitment to economic diversification.
He mentioned that the government plans to establish a specialized trade negotiation body in preparation for Bangladesh’s graduation from LDC status.
Dr. Zaidi Sattar, Chairman & CEO of the Policy Research Institute (PRI) of Bangladesh, presented the keynote paper at the event.
Distinguished speakers included Professor Mustafizur Rahman, Distinguished Fellow at the Centre for Policy Dialogue (CPD); Syed Ershad Ahmed, President of the American Chamber of Commerce in Bangladesh; and Dr. Mahfuz Kabir, Research Director at the Bangladesh Institute of International and Strategic Studies (BIISS).
In his keynote address, Dr. Sattar highlighted that the flat 10 percent baseline tariff across all imports in the US is surprising. He explained that the US applies varying tariff rates to its top 60 trading partners, with higher tariffs on countries deemed “worst trade offenders”.
For instance, the US imposes a 30% tariff on Chinese goods, while China levies a 10% tariff on US products. Tariffs on Canada and Mexico stand at 25%.
Dr. Sattar advocated for a negotiation-based strategy with the US, focusing on tariff reductions for key export items such as agricultural products, machinery, and automobiles. He also suggested reducing Bangladesh’s tariffs on non-RMG items like footwear to lessen the anti-export bias and engaging on an MFN (Most Favored Nation) basis.
He noted that the ongoing trade tension could benefit Bangladesh due to China’s high tariff burden (54%), although there are risks, including a projected 1% decline in global GDP and a 3% drop in global trade, with Asia being particularly vulnerable.
Regarding the RMG sector, Dr. Sattar recommended collaboration with international buyers to share increased production costs, highlighting that Bangladesh’s limited bargaining power necessitates flexible pricing strategies.