Behind the scenes: How private sector diplomacy helped secure US tariff relief

Exporters played a crucial role during negotiations with the US administration that paved the way for a reduction in tariffs on Bangladesh's exports to the American market to 20 percent.

Initially, the Trump administration had set a 37 percent tariff on Bangladesh's exports, one of the highest among the listed 90 countries on which tariff hikes were announced in early April this year.
The rate was brought down to 35 percent, which did not dispel concerns among exporters, as exports to the US account for roughly one-fifth of the total shipment from Bangladesh.

Despite there being no formal scope for private sector involvement in the negotiation, they worked with stakeholders.

A group of major garment exporters flew to the US in mid-July, engaging directly with American clothing retailers and brands in their efforts to pursue the Trump administration on Bangladesh's behalf. Their efforts contributed to the eventual outcome.

Several major commodity importers also joined the effort. They held meetings with top US suppliers, including cotton and soybean exporters.

These backchannel efforts were complemented by the government's strategic offer to purchase 25 aircraft from Boeing, and 3.5 million tonnes of wheat over the next five years. These efforts played a vital role in softening the US stance.

Industrialist Mohammad Amirul Haque, who imports soybean seeds from the US, also joined the unofficial delegation and held meetings with the United States Soybean Export Council and other key players, to advocate for lower tariffs on Bangladesh's exports.

Similarly, Showkat Aziz Russell, president of the Bangladesh Textile Mills Association, met with American cotton growers, suppliers, retailers, and brands to press Bangladesh's case.

Mostafa Kamal, chairman and managing director of Meghna Group of Industries, also engaged with his US suppliers to discuss the tariff issue at a time when top government functionaries, led by the commerce ministry, were involved in negotiations to secure a competitive tariff for Bangladesh's exports