Bangladesh has room to further negotiate tariff rates with the United States before signing a formal agreement, Finance Adviser Salehuddin Ahmed said on Wednesday (Aug 6).
He said, “There will be a formal agreement, and in that process, we will review where we need to reduce tariffs and what goods we may have to import.”
Speaking to reporters at the Secretariat following a meeting of the Cabinet Committee on Public Procurement and the Cabinet Committee on Economic Affairs, the adviser confirmed that the agreement on the revised tariffs has not yet been finalised.
His remarks come in the wake of Bangladesh’s recent success in negotiating a reduction of the retaliatory tariffs imposed by the US—from 35% down to 20%. However, the final deal is still pending.
When asked whether the new tariff rate is satisfactory for Bangladesh, Ahmed replied, “It would have been better if the rate was lowered a bit more. What they’ve offered is reasonable, but I wouldn’t call it comforting. Ideally, we would prefer not to have counter-tariffs at all.”
He added, “The world is already facing numerous challenges. However, compared to other countries, Bangladesh is not in a terrible position. Our readymade garments (RMG) sector is performing well. Our textile and knitwear segments can adjust quickly, though woven garments might face some difficulty.”
Responding to a question on whether Bangladesh intends to resume negotiations, Salehuddin Ahmed confirmed, “Yes, we will. Mr. Bashir (Trade Adviser) hasn’t returned yet, but I’ve spoken with the Vice President of the US Chamber of Commerce. They have a very positive view of Bangladesh. They noted that we returned Chevron’s money, paid MetLife in full — Bangladesh doesn’t hold back payments. So, US businesses are generally favourable toward us.”
Addressing queries about a potential ‘non-disclosure agreement’ surrounding the tariff discussions with the US, Ahmed explained, “In one-on-one negotiations, many things are not made public. This isn’t a multilateral negotiation under the WTO or the UN, where everything is open. We are competing with Vietnam, China, North Korea, South Korea, India, Pakistan — some matters cannot be disclosed.”
On the issue of election-related expenditure and the budget deficit, Ahmed assured that necessary funds will be allocated for the upcoming national election.
“There’s no problem with that,” he said, adding that, according to provisional estimates, the current budget deficit stands at 3.6%, within the target limit of 4.5%.
SMS/
