US sends list of items, seeking zero duty

The US has demanded zero duty facility for a large number of its products from Bangladesh.

Commerce Secretary Mahbubur Rahman said the United States Trade Representative (USTR) sent a list of these products to him yesterday via email.   

He spoke to The Daily Star over the phone last night upon his return from the US after participating in the talks in Washington, DC. Commerce Adviser Sk Bashir Uddin also returned to Dhaka after the talks with the chief trade negotiation body of the American government.

"Both the countries have agreed on almost all the issues, except a few things during the negotiations with the USTR in Washington, DC,"  he said.

Speaking about the products for which the US demanded the zero duty facility, Mahbubur could not specify a number immediately but said the list is "very long".

He said Bangladesh has already been providing zero duty benefit to many American goods over many years. For instance, the import of cotton, wheat, soybean seeds and oil and other agricultural products from the US is free of duty.

But adding more products to the list does not solely depend on the commerce ministry, so a meeting will be held next Saturday to take the opinions of the other ministries, Mahbubur said.

Later, Bangladesh will hold another important meeting with the US to finalise the tariff rate before the 35 percent announced by Trump takes effect on August 1.

During the talks in the US, Bangladesh requested tariff rates between 10 percent and 20 percent. The next meeting is also scheduled to take place in Washington, DC.

After Trump announced reciprocal tariffs on April 2, Bangladesh offered zero duty facility for many American goods and also promised to increase import volume of products such as aircraft, LNG, cotton, wheat, soybean and other agricultural products.

The US is the single largest export destination for Bangladesh, which shipped goods worth more than $8 billion to the US and imported $2 billion American products last year.

FRAMEWORK DEAL

Power and Energy Adviser Fouzul Kabir Khan yesterday said that before engaging in further talks on tariff and non-tariff issues, the US is first looking to sign a framework agreement with Bangladesh, which would include a range of matters, including its security concerns.

The adviser said the tariff talks with the US extended beyond the scope of trade negotiations.

"Not just tariffs, there have been discussions on non-tariff barriers as well. They [the US] are prioritising their national security," Fouzul told reporters at a press conference on NBR reforms at the energy ministry.

According to him, the US was assessing how Bangladesh interacts bilaterally with other countries. "A framework is being worked out in this regard, and the matter is under discussion."

The US wants to sign the framework agreement before signing the deal on tariff and non-tariff issues, Fouzul said.

Talks between Washington and Dhaka have made notable headway, the adviser said, with an expected wrap-up by August 1, ahead of Trump's reciprocal tariff rollout.