Bangladesh’s response to trump tariffs: US will get work plan by next week

Bangladesh will send the work plan to the United States Trade Representative (USTR) within the next week to reduce the trade gap as part of the efforts to bring down Trump's reciprocal tariff, currently on pause until July 9.

The government is preparing the work plan by incorporating the feedback from stakeholders, said Commerce Secretary Mahbubur Rahman, who took part in the first round of negotiations with the USTR last week in Washington DC.

The USTR has given Dhaka more than a month to send the work plan, which cannot be longer than five pages. But the government will send it within the next five to seven days so that the next round of negotiations can be started as soon as possible, he said.

"We will not promise anything outside the World Trade Organisation (WTO) rules." For instance, if any duty is reduced, it will also be reduced for all other countries under the WTO's most-favoured- nation (MFN) clause.

Bangladesh should rationalise its tariffs regardless as part of the preparations for graduation from the least-developed country bracket in November 2026, Mahbubur said.

The government will build a warehouse such that more US cotton can be imported. Currently, Bangladesh imports most of its cotton from neighbouring countries and Africa for shorter distances and lead time than the US.

Moreover, Bangladesh will sign contracts with the US for importing LNG from the US. Currently, Bangladesh imports LNG from the Middle East at higher prices, Mahbubur said.

In the work plan, Bangladesh will also inform on the status of labour law reforms and the progress made in areas of protection of Intellectual Property Rights.

Bangladesh will also push for a Free Trade Agreement (FTA) with the US.

After sending the work plan to the USTR, Bangladesh will send the draft proposal for FTA negotiation to the US, the commerce secretary added.

If consensus on tariff reduction cannot be reached through negotiations, Bangladesh will seek an extension of the 90-day pause, said Finance Adviser Salehuddin Ahmed while addressing a group of businesspersons at the pre-budget consultative meeting.

However, Bangladesh will not anger the US; rather, the government will enhance engagement with the Trump government.

"Engagement is the best way forward in negotiations," he said, adding that the Bangladesh delegation held talks with officials of the US departments of energy, commerce, state, and agriculture over the tariff issue.

At present, the trade balance between the two countries is heavily tilted towards Bangladesh because of the higher shipment of garment items.

For instance, Bangladesh exported goods worth more than $8 billion last year and imported goods worth $2 billion from the US.