The United States assured that it might cut the imposed 20 per cent tariffs on Bangladeshi products if the country continues to shrink the trade deficit, said commerce adviser on Sunday.
In the context of gradual decrease in trade gap, Bangladesh has requested the USTR to further reduce聽the reciprocal tariff, adviser Sk Bashir Uddin also said.
鈥楾hey (US side) have assured that if the trade gap continues to shrink, then there is a possibility of further tariff cuts,鈥� he added.
He was speaking to the journalist after a meeting with a delegation of the US Trade Representative, led by Brendan Lynch, assistant US trade representative for South and Central Asia, at the secretariat in the capital.
A three-member delegation from the US Trade Representative arrived in Bangladesh on Sunday for a two-day visit, following up on previous parleys in the USA, to discuss the draft trade agreement with Bangladesh.
Earlier on July 31, the US decided to reduce the reciprocal tariff on imported goods from Bangladesh to 20 per cent from the previously announced 35 per cent following a series of negotiations for over a month.
According to commerce ministry officials, a draft trade agreement has already been prepared following discussions with the USTR, and it would be finalised with necessary amendments if progress is made during the negotiations.
Replying to a question, he said that a trade agreement between Bangladesh and the USA might be signed this month, as the issue was widely discussed at the meeting.
Commerce secretary Mahbubur Rahman stated that the trade deficit between Bangladesh and the USA amounts to around $6 billion. To reduce this trade gap, Bangladesh had previously made commitments to increase its purchases of soybeans from the USA.
鈥業f we can reduce further the trade gap with the USA, can keep intact our exports, then we can avail some extra facilities,鈥� he added.
Mahbubur said apart from the standard of product, there is also a need to look at 鈥榚nsured supply鈥�.
Sk Bashir Uddin said, 鈥榃e are trying to reduce the existing trade gap with the USA through importing energy and agricultural products,鈥� he added.
He also said that they are importing these products from the US at a cost-efficient price compared to the international market.
Replying to another question, he stated that they are attempting to secure additional facilities from the USA in the RMG sector. Based on the meeting, they are hopeful that progress will be made in this regard.
Replying to another question on US cotton, the commerce adviser said that Bangladesh could meet only 2 per cent of its overall cotton demand through local production, while the remaining 98 per cent of cotton needs to be imported.
Responding a question from journalist, he said that there is qualitative difference between the Russian wheat and the US wheat as the protein content of US wheat is higher.
There are different price tiers of wheat from Russia, Canada, Australia, the USA, and Argentina, he said.
Replying to another query, Bashir said that the import price of agricultural products from the USA is now comparatively less.
On procurement of Boeing aircraft, he said the delivery schedule of either Boeing or Airbus is now very long, as both companies cannot make delivery upon fresh orders before 2032.
If Bangladesh could significantly reduce its trade gap and gain preferential access to the US market, then its exports to the US would likely increase alongside imports.
Bangladesh is targeting higher imports of US liquefied natural gas, wheat, soybeans, and cotton to reduce the trade gap with the Trump administration.
