As Bangladesh prepares to engage in bilateral negotiations with the United States regarding reciprocal tariffs, the importance of addressing the complexities of trade dynamics cannot be overstated.
Commerce Secretary Mahbubur Rahman’s remarks at a recent seminar highlight a critical issue: the significant volume of US-manufactured goods entering Bangladesh through intermediary nations such as Singapore, the UAE, and India.
This indirect procurement not only inflates the landed cost of American products but also diminishes their competitiveness in the Bangladeshi market.
This newspaper on Sunday reported that the current trade relationship between Bangladesh and the US, valued at approximately $10.6 billion in 2024, underscores the necessity for a more direct import process.
With exports to the US rising by 1.1 per cent year-on-year, largely driven by the readymade garment (RMG) sector, it is evident that the US remains Bangladesh’s largest export destination.
However, the $2.2 billion in imports from the US, reflecting a 1.5 per cent decrease, signals a need for strategic adjustments to enhance this partnership.
The interim administration, led by Nobel Laureate Professor Muhammad Yunus, is rightly focusing on strengthening trade relations, particularly in the agricultural sector.
The ambition to increase imports of American cotton is commendable, especially as it aims to address the existing trade imbalance.
Yet, the challenge remains: how to make these imports more cost-effective.
While higher shipping and logistical costs compared to regional suppliers like China and India pose a barrier, diversifying sourcing could ultimately bolster resilience and long-term competitiveness.
Experts at the seminar rightly emphasised the need for a streamlined import process, improved trade facilitation, and mutual recognition of standards.
Such measures could pave the way for a more balanced and sustainable trade partnership between Bangladesh and the United States.
As Bangladesh approaches these negotiations, it is imperative that the concerns raised by Secretary Rahman are taken seriously.
If the US fails to adequately address these issues, Bangladesh may have no choice but to explore measures under World Trade Organisation (WTO) regulations.
The upcoming discussions present a pivotal opportunity for both nations to reassess and enhance their trade relationship.
By fostering a more direct and equitable trading environment, Bangladesh and the United States can work together towards mutual benefit, ensuring that both economies thrive in an increasingly interconnected world.
