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The next challenge for the Bangladesh economy would be to graduate from the status of the least developed country, which would be a bigger challenge than the US tariff, said Commerce Adviser SK Bashir Uddin.

He also called on all businesses and stakeholders to sit together to devise an action plan to face the challenges with strong leadership.

He was speaking at the welcome reception programme for tariff negotiators organised by the Bangladesh Textile Mills Association on Sunday night at Gulshan Club Ltd in the capital.

BTMA organised a welcome reception to congratulate the Bangladesh team, led by Commerce Adviser SK Bashir Uddin, who successfully negotiated a reduction in the reciprocal tariff to 20 percent from 35 percent.

‘The fascist government has left the legacy of ‘time-bound time bomb’ in the name of LDC graduation, which would be our major challenge,’ he added.

He also said that the US authorities had committed to reducing the trade deficit by 75 percent in a year.

He said that if needed, they would go to Washington within two to three weeks, as the negotiations were still ongoing.

Speaking at the event, Khalilur Rahman, national security adviser of the interim government, said that Bangladesh had negotiated an agreement with the US government with the provision that the next elected government could make the required changes or cancel any.

He also stated that the ongoing negotiations were based on three key principles.

‘We are negotiating with president Trump›s government on agreements which are revokable. The first thing is that we are not an elected government and we are not going to obligate the next government,’ he added.

Moreover, the next government must have the power to change, modify, or cancel the agreements.

‘The second one is that we took the responsibility which we can fulfil,’ he said, adding, ‘If we fail to meet any commitments, the US authorities can cancel this agreement and charge us 37 per cent tariffs.’

‘Third, this is a bilateral agreement. We cannot do this to any third country. We didn’t want to get into any geopolitical trap,’ he said.

He hinted that the tariff might go down further for Bangladesh.

‘The tariff rates for all competing countries have not yet been determined However, I can assure that Bangladesh’s rate will remain competitive. There is another matter I will not disclose publicly here. The main point is that we still have some discussions pending with the United States and if those talks succeed, we may secure further tariff concessions,’ he added.

BTMA president Showkat Aziz Russell said that following the successful negotiation with the United States regarding reciprocal tariffs, Bangladesh was now in a stronger position.

As a result, the country’s exporters were receiving more inquiries from buyers, he said.

‘We want to invest further, now is the high time to invest in the textile sector,’ he added.

He also said that there is currently an investment of $75 billion in the garments and textile sector, and Bangladesh’s exports stand at $41 billion, with a target of reaching $50 billion soon.

‘Everything will be possible if you keep a close eye on us and ensure an investment-friendly environment,’ he added.

Mahmud Hasan Khan Babu, president of the Bangladesh Garment Manufacturers and Exporters Association, stated that during negotiations over reciprocal tariffs, they reached a stage when they were pretty concerned.

‘If the duties were not reduced, there was a real risk of losing our business. Entrepreneurs shared diverse opinions, offered valuable advice, and expressed their concerns. In some cases, there were even misunderstandings,’ he added, saying that, however, whatever they have said or done has always been as responsible citizens.

He also stated that they need to determine whether using US-origin yarn would qualify them for exemptions from reciprocal tariffs and, if so, under what process.

‘However, we are not getting the necessary information on this.  We have already reached out to different stakeholders in a scattered manner and in this regard, government support is also essential,’ he added.

Meanwhile, regarding the use of US content, the security adviser said that if US-origin yarn is used, it would be excluded from the tariff calculation. 

BKMEA president Mohammad Hatem and other business leaders from different sectors also spoke at the event.