We've never seen such a "faultless, innocent, blameless" government: Debapriya Bhattacharya

Debapriya Bhattacharya, Distinguished Fellow at the Centre for Policy Dialogue (CPD), has said, “Judging by the actions of the current interim government, it seems we are trying to move forward with an extremely faultless, innocent and blameless government.”

He made the remarks while criticising the government's role in tariff negotiations at a roundtable titled “U.S. Counter Tariffs: Which Way for Bangladesh” held today, Sunday. The event was organised by Prothom Alo at a hotel in the capital and attended by prominent economists, business leaders, and researchers.

Explaining why he described the government as faultless, innocent and blameless, Debapriya Bhattacharya said, “It amazes me that we sitting here seem to understand so much, yet those in government apparently don’t. That’s why I said, I’ve never seen such a faultless, innocent and blameless government. Right now, we’re stuck in a muddy situation with these tariff negotiations. Still, I cling hold on to hope that we can collectively overcome this shortfall.”

Debapriya said that historically, very few weak governments have succeeded in tough negotiations. Likewise, there are hardly any instances of disjointed governments being able to seize major opportunities. “This is such a disjointed government that it’s hard to even tell who is leading which area of work,” he said. “Besides, when a government like this one lacks political legitimacy, its vulnerability is exacerbated. Since the current government is weak, it should have involved experts and stakeholders in compensating for its weakness in the tariff negotiations. But that didn’t happen.”

Debapriya drew a contrast between the current government and previous administrations. “I’ve worked with several governments,” he said. “In the past, they may not have known certain things, but when we brought those matters to their attention, they would say, ‘Oh really? Okay, give us your recommendations and we’ll implement them.’ But the current government says, ‘We already know all this. Don’t worry about it.’”

He noted that the negotiations with the US involve not only tariffs but also several non-tariff issues. “This isn’t just about economics, there are layers of political economy and geopolitics involved,” he said. “So those who see it merely as a tariff issue are not seeing the full picture.”

Debapriya also said that in the negotiations with the US, the services sector has been completely overlooked. “From advisors to others involved in the talks, no one is mentioning the services sector,” he said. “Yet this sector is closely tied to our exports in garments, pharmaceuticals and more.”
Criticising the non-disclosure agreement (NDA) signed with the US as part of the tariff negotiations, he said, “Instead of signing an NDA, what we should have issued is a ‘norm paper’, a document outlining our policy position.”

Debapriya Bhattacharya noted that after Donald Trump’s tariff announcement last February, four types of responses were seen globally. First, some countries retaliated. China, the European Union (EU), Canada, and Mexico, which have strong bargaining power and large markets, attempted to impose counter-tariffs. Second, some countries, including Bangladesh, entered into negotiations while granting the US unilateral trade advantages. Third, some regions, mainly in Africa and to some extent ASEAN, tried to respond jointly. Fourth, a few countries, including China, lodged complaints with the World Trade Organisation (WTO).

Debapriya Bhattacharya said that Donald Trump’s decision to impose counter-tariffs is based on flawed economic policy. “Sooner or later, they will be forced to backtrack,” he said. “When inflation starts rising in the US economy, growth slows down and employment drops, the signs will become evident. While the US economy hasn’t faced such shocks up to last month, they may emerge within the next six months. So, we must keep these possibilities in mind while negotiating.”

Debapriya added, “Let me say this emphatically: Trump’s reciprocal tariff move will not last because it’s unscientific. But before we reach that stage, we must prioritise employment and investment in the interim when making decisions.”

He emphasised that responding to the US counter tariffs requires major structural measures. “This can’t be resolved through tariffs alone,” he said. “We need to think more broadly and strategically about where Bangladesh is heading in the coming days.”