US signals tariff relief for BD soon: Lutfey
Staff Reporter :
The United States is likely to announce a reduction in the reciprocal tariffs imposed on Bangladesh by the end of this week or early next week, Chief Adviser’s Special Envoy on International Affairs Lutfey Siddiqi said on Tuesday.
Speaking at a press conference at the Foreign Service Academy, Lutfey briefed the media on Bangladesh’s engagements and outcomes at the World Economic Forum (WEF) in Davos.
He said Washington has shown clear sincerity in lowering tariffs on Bangladesh and that a formal announcement is expected soon.
However, he added that it remains uncertain how much the current 20 percent tariff will be reduced.
Lutfey said he discussed the issue directly with US Treasury Secretary Scott Bessent, a member of President Donald Trump’s Cabinet, on the sidelines of the Davos conference. According to him, several factors have contributed to the positive outlook.
“Many aspects of the US non-tariff policy align with the reform agenda of Bangladesh’s interim government,” he said.
“Moreover, the trade deficit of around $6 billion with the US has declined significantly. Considering these developments, the US is showing genuine intent to reduce trade barriers on Bangladesh. A favourable decision is expected shortly.”
On Bangladesh’s trade relations with the European Union, Lutfey said he held discussions with EU Commissioners Roxana Mînzatu and Jozef Síkela on the possibility of a Free Trade Agreement (FTA).
“We have clearly expressed Bangladesh’s interest in an FTA with the EU, and they have responded positively. However, their process is relatively slow,” he said.
He noted that the EU is currently prioritising FTAs with India and may move next towards Vietnam, which could pose challenges for Bangladesh. Still, he stressed there was no reason for alarm.
“We must continue engagement. I will leave detailed notes on this issue for the next government,” he added.
Lutfey also warned that securing GSP Plus facilities in the EU market after Bangladesh’s graduation from least developed country (LDC) status will be challenging.
He cautioned that excessive dependence on a single export product could jeopardise GSP Plus eligibility, pointing out that garments overwhelmingly dominate Bangladesh’s exports to the EU.
Referring to his meeting with World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala, Lutfey said future trade policy issues were discussed.
He said the WTO chief advised Bangladesh to gradually move away from excessive reliance on multilateral trade and focus more on bilateral agreements.
In this context, Lutfey said constructive discussions were held with Japan on an Economic Partnership Agreement (EPA).