With just days left before a 35 per cent reciprocal tariff by the United States on Bangladeshi exports takes effect, Bangladesh is pushing for a third round of negotiations.
According to the ministry of commerce, a formal proposal has been sent via email to the US counterpart on Monday at 7:30pm Bangladesh time, requesting a time slot for the next phase of dialogue.
Speaking to 抖阴精品, Mahbubur Rahman, secretary of the commerce ministry, said that when the US confirmed the slot, they were聽ready to sit for the third round of discussions.
The second round of discussions, ended on July 11, failed to produce a consensus from either side regarding the tariff policy.
With the deadline fast approaching, Bangladesh is taking urgent steps to reopen talks in hopes of averting the potentially damaging duty hike.
鈥榃e have submitted our position already and also finalised further proposals through inter-ministerial discussions on Sunday. After sending the proposals officially, we would wait for the US response,鈥� he added.
Regarding private sector involvement, he said that they had already encouraged them to engage in B2B-level discussions in parallel.
On Sunday, Bangladesh signed a memorandum of understanding with the US to import 7 lakh tonnes of wheat annually for the next five years, aiming to reduce trade gap amid the threat of facing a 35 per cent US tariff.
Mahbubur Rahman said that they urged businesses to discuss with wheat, cotton, soy, and other product-based associations in the US to increase imports.
鈥榃e import those products from many countries and we urged the businesses to increase import from the US,鈥� he added.
Regarding the appointment of lobbyists, he stated that reciprocal tariffs were a global issue and that such matters could be resolved through negotiations and agreements, rather than through lobbying.
鈥榃e urged our businesses to conduct B2B level discussion with the US counterpart while we would conduct G2G level discussion,鈥� he said, adding that such discussion would surely bring some results.
Business leaders expressed their frustrations over the past few weeks regarding the government鈥檚 sluggish pace in addressing the impending US tariff.
Despite competing nations successfully negotiating reductions, they underscored the glaring weaknesses in Bangladesh鈥檚 preparation.
Speaking to 抖阴精品, Mahmud Hasan Khan Babu, president of the Bangladesh Garment Manufacturers and Exporters Association, stated that the businesses were operating as usual.
Regarding appointing lobbyists, he said that upon the unofficial approval from the government-end, they were trying to hire lobbyists to discuss with the Trump聽administration.
鈥榃e discussed with several firms; however, it would be extremely tough to get an efficient firm as we have about 9 days in hands,鈥� he added.
However, they discussed this with the farms, hoping that if the Trump administration would extend the timeframe.
Trump administration slapped Bangladesh with a 35 per cent tariff on July 8, in a letter to the chief adviser.
Currently, Bangladeshi exporters enjoy a tariff of about 15 per cent in shipping their products to the US, the single largest export destination for Bangladesh.
With the imposition of the 35 per cent tariff, the total tariff would be 50 per cent, effective from August 1.
In 2024, Bangladesh exported approximately $8.4 billion in goods to the US, of which $7.34 billion, or about 88 per cent,聽accounted for readymade garments.
In 2024, US goods exports to Bangladesh were worth $2.2 billion, resulting in a trade deficit of $6.2 billion for the US.
According to the BGMEA data, 1,322 RMG operational factories under the trade body are associated with US exports.
On Sunday, AmCham president Syed Ershad Ahmed said that constructive dialogue on counter-tariffs could yield positive outcomes.
鈥楾his is not unique to us, many countries face similar issues. As our capacity grows, our bargaining power in these discussions will also increase,鈥� he added.
He also said that his organisation had discussed importing cotton from the US and customs reforms with relevant stakeholders, including the Bangladesh Investment Development Authority.
Businesses expressed frustration with signing a non-disclosure agreement regarding the tariff, which the government used to exclude them from the discussion.
Meanwhile, a number of business leaders revealed that discussions with the US were not limited to trade alone; the US was also keen to engage with Bangladesh on geopolitical and strategic matters, with a primary objective of ensuring that Bangladesh would not lean too heavily toward China.
Moreover, new conditions were reportedly being set during these talks, such that if the US imposes sanctions on any country, Bangladesh would be required to comply with those sanctions as well.