US investigates whether Bangladesh has excess production capacity

The United States has launched an investigation into 16 countries, including Bangladesh, to determine whether they have excess capacity and are producing beyond demand in their manufacturing sectors.

US Trade Representative Jamieson Greer announced the launch of the investigation on Wednesday.

In a press release issued the same day, the Office of the US Trade Representative said the probe will be conducted under Section 301 of the US Trade Act of 1974.

The investigation will examine whether the policies, measures, or production structures of the countries concerned are unreasonable or discriminatory toward US trade and whether they are harming American commercial interests.

Apart from Bangladesh, the 15 other countries under investigation are China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Mexico, Japan, and India.

In the statement, Greer said the United States will not allow its industrial capacity to be undermined for the benefit of other countries. In other words, Washington will no longer accept a situation where other nations push the pressure of their excess production into the US market.

According to him, the investigation is part of President Donald Trump’s policy to revive the US industrial sector. The aim is to bring international supply chains back to the United States and create high-paying jobs in the manufacturing sector.

Greer further said many countries have manufacturing capacities far exceeding their domestic demand.

As a result, surplus products are exported to international markets. This puts US domestic manufacturers under competitive pressure and discourages new investment and expansion of production within the country.

Such developments, he said, undermine the Trump administration’s reindustrialisation policy.

Under Section 301, the United States can take retaliatory measures if a foreign government’s policies or actions are considered unreasonable or discriminatory toward US trade.

According to Section 302(b) of the Trade Act, the Office of the US Trade Representative can initiate such investigations on its own authority under Section 301.

Once an investigation begins, formal consultations are initiated with the governments concerned. Requests for discussions have already been sent to the governments of the listed countries.

Public comments on the investigation will be accepted from 17 March. Interested individuals or organisations must submit written comments, applications to participate in hearings, and summaries of testimony by 15 April.

A public hearing on the matter will begin on 5 May.