Bangladesh is set to offer concessions to the US in several areas to secure a reduction in the newly announced reciprocal tariff from 35 per cent to 20 per cent. These concessions will cover tariffs, trade, investment, intellectual property rights, imports, the service sector, environmental standards, and labour rights.
It is because of Bangladesh’s willingness to make these concessions that the US has agreed to lower the reciprocal tariff rate to 20 per cent. Following the announcement of the revised tariff rate last Friday, both sides are now moving towards signing an agreement.
The proposed name of the deal is likely to be the “US-Bangladesh Reciprocal Trade Agreement,” according to sources at the Ministry of Commerce.
When asked whether Bangladesh has accepted all of the US demands, Commerce Adviser Sheikh Bashiruddin told Prothom Alo over the phone from Washington last night, “No. It is not possible to accept everything, which is why we went through lengthy negotiations.”
Relevant sources said Bangladesh will reduce the custom, supplementary and regulatory duties on exported US-products. However, Bangladesh will have to make an amendment of the relevant law.
Speaking to Prothom Alo about this, NBR chairman Abdur Rahman Khan said, “The issue of amending laws arises when it comes to reducing CD (customs duty) and SD (supplementary duty). However, we have not reached that stage yet. Let’s see how it progresses.”
Sources said Bangladesh will recognise the United States’ dairy safety system and allow the import of meat and poultry, processed meat, and egg products from the country. Bangladesh will also permit the import of dairy products derived from US cattle, sheep, or goats. If any issue arises with a US product, Bangladesh will promptly take steps to consider the risk analysis and approvals conducted by the United States or a third country.
It has been learnt that Bangladesh will lift the existing restrictions on US investments in certain sectors. Alongside, the process of issuing no-objection certificates for American investors will be simplified. Bangladesh will also formulate guidelines to ensure a swift and transparent approval process so that US capital can enter and exit the country with ease. Moreover, Bangladesh will clear the outstanding dues of existing US companies promptly.
Sources said Bangladesh will increase imports of military equipment, civilian aircraft and parts from the United States. Additionally, imports of fuel oil, edible oil, wheat and cotton will be increased, while a long-term agreement will be signed for the import of liquefied natural gas (LNG).
Sources at the Ministry of Commerce said the United States wants Bangladesh to take action against illegal exports and, if necessary, conduct joint investigations with the US. Bangladesh has agreed to this.
Additionally, to ensure public participation, Bangladesh will make laws and regulations easily accessible online and publish proposed laws along with their analyses.
It has been learnt that Bangladesh will accept approvals from the US Food and Drug Administration (FDA) for importing medical equipment.
Bangladesh will also recognise electronic certificates issued by the FDA and will not require hard copies, original copies, certified copies, or handwritten copies from the agency. Additionally, Bangladesh will apply for membership in the International Medical Device Regulators Forum.
Sources said Bangladesh will recognise the United States’ dairy safety system and allow the import of meat and poultry, processed meat, and egg products from the country. Bangladesh will also permit the import of dairy products derived from US cattle, sheep, or goats. If any issue arises with a US product, Bangladesh will promptly take steps to consider the risk analysis and approvals conducted by the United States or a third country.
It has been learnt that Bangladesh has agreed not to impose or maintain any regulations inconsistent with the provisions of the World Organisation for Animal Health (WOAH) regarding the prevention of highly pathogenic avian influenza.
After the agreement comes into effect, if the United States submits an application for market access of its plants and plant products to Bangladesh, it will be approved within 18 months.
The United States wants Bangladesh to approve and implement several international agreements, if it has not already done so.
Those include the Berne Convention, Brussels Convention, Budapest Treaty, Hague Agreement, Madrid Protocol, Marrakesh Treaty, Paris Convention, Patent Cooperation Treaty, Singapore Treaty, the 1991 Act of the International Union for the Protection of New Varieties of Plants (UPOV), the WIPO Copyright Treaty, and the WIPO Performances and Phonograms Treaty.