Experts emphasised the importance of product diversification and timely trade agreements with partners to safeguard Bangladesh鈥簊 export competitiveness amid the United States鈥� reciprocal tariffs and the looming challenges following graduation from the least developed country status.
They also said that to maximise the benefits of the recent tariff deal, Bangladesh needs to adopt a comprehensive strategy addressing various aspects of its trade ecosystem.
They were speaking at a seminar titled 鈥楤angladesh-US Tariff Deal: How to Optimise Trade Benefit鈥�, organised by the Bangladesh Institute of International and Strategic Studies on Wednesday in the capital.
On July 31, the US imposed a reciprocal tariff of 20 per cent on Bangladeshi goods, down from 35 per cent, which was announced on July 7 and reduced from 37 per cent initially on April 2.
In his speech, commerce secretary Mahbubur Rahman said that Bangladesh operates in a rules-based multilateral trading system.
鈥榃ithout invoking Article 24 of the WTO, we cannot conclude tariff or non-tariff agreements with any country, as it would automatically extend Most Favoured Nation benefits to others,鈥� he added.
He also said that they were working strategically to conclude a series of trade deals 鈥攑referential trade agreements, free trade agreements, and economic partnership agreements 鈥� to protect market access before and after LDC graduation.
Bangladesh is expected to graduate from the LDC status in November of 2026.
He also stated that over 90 per cent of Bangladesh鈥簊 exports currently go to the EU, the UK, and the US, making it crucial to ensure continued market access in these economies.
鈥楶TAs and FTAs are not just market-entry tools, they are a shield against preference erosion after graduation,鈥� he added, saying that new agreements could also create opportunities for emerging sectors such as pharmaceuticals, IT-enabled services, and agro-processing.
The commerce secretary said Bangladesh is in the final stages of concluding an EPA with Japan and has initiated talks with South Korea.
鈥極nce we secure these major markets, managing the remaining 10 per cent of global trade will be easier,鈥� he added.
Meanwhile, Bangladesh and Japan have completed the seventh round of their EPA negotiations, which took place from September 3 to 12, according to commerce ministry officials.
Mahbubur Rahman also stressed the need to diversify imports and deepen economic engagement with the US to build goodwill.
鈥楾he government and private sector have agreed to import US cotton, wheat, soybean, LNG, and LPG, alongside exploring bonded warehouse facilities to speed up imports of raw materials critical for exports,鈥� he added.
Regarding domestic preparedness, he stated that a new import policy order has been drafted to eliminate non-WTO-compliant barriers, while labor and intellectual property reforms are underway.
Inamul Haq Khan, senior vice president of the Bangladesh Garment Manufacturers and Exporters Association, said that the new round of US tariffs has also created an opportunity for Bangladesh鈥簊 RMG sector.
鈥楳any brands are diversifying their sourcing, and Bangladesh has emerged as a key beneficiary,鈥� he added.
This window would not remain open forever, he cautioned, noting that to hold onto these buyers, Bangladesh must focus on competitive pricing, reliability, and compliance.
He also underscored the need to diversify into man-made fibers, which now make up 70 per cent of global apparel demand, while Bangladesh still relies 70 per cent on cotton.
鈥業nvestment in MMF production facilities, eco-friendly processing zones, and shared lab infrastructure is essential to stay relevant in the global market,鈥� he added.
He added that BGMEA members have already started importing US cotton, despite the higher costs, because of its superior quality and lower wastage.
鈥榃e have requested bonded warehouses to ensure faster deliveries, which would allow us to meet buyers鈥� tight deadlines and secure repeat orders,鈥� he added.
In his speech as the chief guest, Anisuzzaman Chowdhury, special assistant to the chief advisor聽聽 for the Ministry of Finance, said that the freshly imposed US reciprocal tariff would relocate many RMG buyers to Bangladesh as predicted by various research firms and global news outlets.
鈥楬owever, the benefits would not be automatic and Bangladesh should enhance productive capacity, diversify the economy, and reduce the business cost,鈥� he added.
He also highlighted the government鈥簊 recent initiative to provide all required licenses and certificates for businesses from a single platform.
At the event, Mhafuz Kabir, research director of BIIS, and Professor Golam Rasul of the International University of Business, Agriculture, and Technology presented the keynote.
In the keynote, they stated that rules-based multilateral global trade has shifted towards securitised and selective rules, with the US emerging as the influential architect of the worldwide trade order.
They also recommended increasing Bangladesh鈥簊 export performance and expanding market access.
The presentation recommended deepening broader economic and investment ties to ensure duty-free access to the US market by addressing challenges such as labour and human rights, as well as policy and regulatory reforms.
Md Rafid Abrar Miah of BIISS said that Bangladesh must strengthen supply-side capacities and undertake necessary reforms to realise the potential opportunities.
He also said that Bangladesh should strengthen its leather and pharmaceutical sectors to diversify the country鈥簊 trade.
