Bangladesh’s fair trade stand against US tariffs deserves support
Bangladesh’s formal counter-proposal to the United States Trade Representative (USTR) marks a critical step towards ensuring a more balanced and equitable trade partnership.
This newspaper on Saturday reported that as the two countries near the final round of talks on a proposed Reciprocal Tariff Agreement, Dhaka’s insistence on capping reciprocal tariffs at 10 per cent — in contrast to Washington’s proposed ceiling of 37 per cent — reflects a reasonable and necessary pushback against potentially harmful terms.
The current US position, which includes a requirement for Bangladesh to adopt aspects of American trade law, raises serious concerns. Not only would this infringe upon Bangladesh’s sovereign legal framework, but it could also set a troubling precedent that undermines international trade norms and multilateralism.
Bangladesh’s negotiating posture has been marked by pragmatism and goodwill. Scrapping a wheat deal with Ukraine in favour of American suppliers, boosting LNG purchases from US firms, and proposing aircraft acquisitions from Boeing demonstrate Dhaka’s commitment to strengthening bilateral ties.
At the same time, Bangladesh has addressed key points of contention, including correcting exaggerated claims about high tariffs on American goods. Updated trade data and budget projections have been shared with transparency.
Despite these efforts, apprehension looms large. With the temporary suspension of a 37 per cent tariff set to expire on 9 July, Bangladeshi exporters — particularly in the garments sector — fear a devastating blow to trade volumes if a fair resolution is not reached.
As BGMEA President Mahmud Hasan Babu rightly observed, Bangladesh should not face harsher terms than its global competitors.
Business leaders have also urged the government to urgently appoint a US-based lobbying firm to ensure Dhaka’s position is heard in Washington.
The final stretch of these negotiations demands urgency, clarity, and strategic engagement, especially given the significant trade imbalance: Bangladesh exported $8.36 billion worth of goods to the US in 2024, while importing only $2.21 billion.
Commerce ministry officials remain optimistic, noting Bangladesh’s proactive approach and early progress compared to regional peers. But optimism alone will not secure a fair deal.
The US must recognise the value of its partnership with Bangladesh, not just as a trade ally, but as a responsible emerging economy that has consistently acted in good faith.
The outcome of this agreement will shape the future of US-Bangladesh economic relations. It must be grounded in fairness, mutual respect, and a shared commitment to equitable trade.
