The country鈥檚 private sector urged the government on Saturday for immediate diplomatic response to settle tariff issues with the United States.
They also urged to take short and long-term solutions, including expanding non-traditional markets, expediting free trade agreements and addressing long-standing issues in the trade facilitation system.
Recently, the US imposed 37 per cent tariff on Bangladesh鈥檚 export to the North American country, though the decision is temporarily suspended for 90 days.
This move threatens Bangladesh鈥檚 largest export market and progress in labour and sustainability standards.
They were speaking at a seminar titled 鈥楿S reciprocal tariffs and the way forward for Bangladesh鈥�, organised by the Dhaka Chamber of Commerce and Industry and Business Initiative Leading Development in the capital.
At the seminar, noted economist Debapriya Bhattacharya, presenting the keynote, said that since the tariffs would affect the country鈥檚 competitors also, Bangladesh would not lose much ground.
鈥楾he fear surrounding the reciprocal tariffs imposed by the US is largely unwarranted. The reciprocal tariffs are a form of 鈥渢oxic therapy鈥� and the tariffs imposed by the US president are driven more by politics than economics,鈥� he remarked.
He also expressed strong scepticism about the effectiveness of the US tariff policy.
鈥榃e doubt that the policy will achieve its intended goals or be accepted by the market as hoped,鈥� he added.
He also termed Trumps鈥� tariff policy as economically flawed.
鈥楾he measure is based on trade deficit indicators with specific countries where tariffs are imposed proportionally to the deficit,鈥� he added.
But the current global economy saw significant growth in the service sector which the US tariff policy had not accounted for, he observed.
The existing trade deficit in one year might not persist the next, raising questions about whether tariffs would change annually, undermining the stability needed for investment.
Stressing that policies lacking rationality struggle to maintain sustainability and market acceptance, Debapriya observed, 鈥榊et, crises like these should be seen as opportunities. This is the right time to implement long-overdue reforms we have often discussed.鈥�
Commerce secretary Mahbubur Rahman said that Bangladesh was engaging with the US through bilateral talks rather than multilateral negotiations regarding the tariff issues, and so far, progress appeared positive.
For this reason, Bangladesh had not submitted a formal agenda to the World Trade Organisation, he informed the seminar.
He also said that the government was discussing with the US government over 100 US products and would also discuss how to account for US products imported from third countries.
Regarding cotton imports from the USA, he said that a warehouse could be set up in Bangladesh to expedite the imports.
Moreover, a long-term LNG import agreement had been made with the US, increasing bilateral trade between the two countries by almost $1 billion.
In his speech, Mahbubur Rahman, president of the International Chamber of Commerce Bangladesh, suggested continuing effective negotiations.
鈥楢s an active member of the World Trade Organisation, the way the United States has imposed reciprocal tariffs is not desirable,鈥� he said.
He also said that private sector鈥檚 interaction with the current government was not up to the expected level.
He also suggested reducing reliance on a single market by expanding exports to new regions, particularly in Asia, the Middle East and Africa.
A panel discussion was held in which Policy Exchange Bangladesh chairman M Masrur Reaz, former DCCI president Shams Mahmud, BTMA director Razeeb Haidar and Bangladesh Bank executive director Md Mezbaul Haque participated, among others.
In the panel discussion, M Masrur Reaz said that charting the political economy of the US and Bangladesh should require careful preparation.
He also said that Bangladesh鈥檚 import demand for cotton, soybean and LNG continuously increases, so bilateral talks with the US should continue, including these products for win-win benefits.
Shams Mahmud, former BGMEA director, said that due to the tariff hike, they would have to fight for orders in the future, as product demand might fall in the US market.
He also said that Bangladesh鈥檚 import of US products from a third country should be considered as a direct import.
Razeeb Haider, director of the Bangladesh Textile Mills Association, said that US cotton is relatively expensive, and the quality is also very good, but entrepreneurs here are discouraged from importing cotton as it takes more than three months to import.
To solve this problem, he urged the government to provide warehouse facilities for the US cotton.
DCCI president Taskeen Ahmed and BUILD chairperson Abul Kashem Khan gave the welcome remarks.
