Negotiations dragging on over non-trade issues

Although there is consensus on trade-related matters, negotiations between Bangladesh and the United States are currently stalled over non-trade issues, including some sensitive topics.

A Bangladeshi delegation is scheduled to travel to Washington next week for a third round of negotiations after consultations with the interim government’s chief adviser and others.

This information was gathered from conversations with several business leaders. However, due to a non-disclosure agreement with the United States, government advisers and officials are not commenting publicly on the negotiations.

On 7 July, US President Donald Trump announced new tariff rates on imports from 14 countries, including Bangladesh, South Korea, and Japan. For Bangladeshi products, an additional tariff of 35 per cent was imposed. While the tariffs were initially scheduled to take effect from 9 July, implementation has been deferred to 1 August.

If successful negotiations take place within this period, the tariff rate may be lowered; otherwise, the rate declared by Donald Trump will go into effect. Notably, three months ago, the US had already imposed a 10 per cent counter tariff on imports from all countries.

A delegation led by Commerce Adviser Sheikh Bashir Uddin returned to the country last Sunday after holding discussions in Washington from 9 to 11 July.

At a press conference last Monday, the adviser said, “Preparations are underway for the third phase of discussions with the United States. We’ve requested a timeframe from them. We are hopeful that Bangladesh, leveraging its capabilities, will be able to continue doing business in the US market, and the US will set a reasonable tariff level on Bangladeshi goods. Last week’s discussions with the US were encouraging and quite engaging.”

A business leader, requesting anonymity, told Prothom Alo that the discussions with the United States go beyond trade. The US wants to deepen its geopolitical and strategic involvement with Bangladesh, primarily to ensure that Bangladesh does not tilt too far toward China. Washington wants Dhaka to avoid significantly expanding trade relations with China or encouraging Chinese investment.

Sources confirm that among the conditions being discussed are clauses requiring Bangladesh to comply with any sanctions imposed by the United States. This means Bangladesh will have to refrain from trade, business, or investment activities with countries sanctioned by the US. Furthermore, there is a condition that goods granted duty-free access to Bangladesh from the US should not be offered similar benefits to any other country.

Another business leader, also speaking on condition of anonymity, said that the US wants Bangladesh to import military products from the United States and, in return, reduce its military procurement from China.

The United States is the single largest export destination for Bangladesh. In the fiscal year 2024–25, Bangladesh exported goods worth USD 8.69 billion to the US, which accounts for just over 18 per cent of the country’s total export earnings. More than 85 per cent of these exports were ready-made garments. Other major exports included caps, leather shoes, home textiles, and wigs.

When contacted, Commerce Secretary Mahbubur Rahman told Prothom Alo on Tuesday, “We’ve held a meeting with business leaders and economists and gathered their opinions. Another inter-ministerial meeting will be held soon to gather further input. Altogether, we are preparing thoroughly for the third phase of negotiations in the US We are optimistic that we can achieve the best possible outcome for the country before 1 August.”

Meanwhile, on Tuesday afternoon, BNP Standing Committee Member Amir Khasru Mahmud Chowdhury met with leaders of various business organisations at a hotel in Banani, Dhaka, to discuss the US reciprocal tariffs.

Following the meeting, Amir Khasru Mahmud Chowdhury said that to strengthen negotiations over the imposed tariffs, it is essential to move forward with unified input from all stakeholders.

He said, “Discussions regarding the US-imposed reciprocal tariffs must be reinforced. The BNP will try to initiate dialogue with the government, where we will also present the business community’s concerns so that a coordinated approach can be developed.”

Business leaders attending the meeting included ICC Bangladesh President Mahbubur Rahman; former BTMA President Tapan Chowdhury; former FBCCI President A. K. Azad; BCI President Anwar-ul Alam Chowdhury Parvez; BGMEA President Mahmud Hasan Khan; BKMEA President Mohammad Hatem; MCCI President Kamran T. Rahman and Vice President Simin Rahman; LFMEAB President Syed Nasim Manzur; and Ahsan Khan Chowdhury, Chairman of Pran-RFL Group.

After the meeting, Mohammad Hatem told reporters, “The BNP invited us to this meeting. We told them that if there is anything they can do politically, they should take those steps. Nothing should be done that harms the country. If the counter tariff stays close to the levels imposed on India and Vietnam, we can maintain our competitiveness in that market.”