TDS Desk:

While discussions over trade and non-trade agreements with the United States are yet to begin in earnest, Bangladesh now finds itself negotiating just to secure a meeting. The US Trade Representative (USTR) has scheduled a virtual meeting for 29 July, but Dhaka is pushing for an in-person discussion. As of this report, there has been no indication from Washington that it will agree to face-to-face talks.

The urgency stems from the impending implementation of a new tariff policy on 1 August. If the current structure stands, Bangladeshi export goods entering the US market will face a steep 35 percent retaliatory tariff. The proposed virtual meeting comes just two days before this change is set to take effect.

Analysts point out that the U.S. has already held reciprocal tariff discussions with over 140 countries, many of which have concluded their negotiations. Bangladesh, however, has been unable to secure even a direct meeting. This is partly because Dhaka failed to proactively engage USTR after the new tariff policy was announced more than three months ago.

As a result, the country’s export-oriented economy is now at significant risk, says Dr Zahid Hussain, former lead economist at the World Bank’s Dhaka office. He remarked, “We did not take this issue seriously at first. We assumed it could be resolved with casual talks. Now, USTR is not prioritising us—and that puts Bangladesh at a major disadvantage.”

NON-TRADE CONDITIONS AT THE CENTRE OF THE STANDOFF

According to a source at the Ministry of Commerce, the complication with USTR lies not only in trade matters but also in non-commercial demands. Washington is reportedly seeking non-disclosure agreements that relate to regional security, global trade dynamics, and geostrategic concerns in Asia. These non-trade issues appear to be receiving greater emphasis from the U.S., while Bangladesh’s interim government maintains that it will not entertain agreements that go against national interest.

Commerce Secretary Mahbubur Rahman told journalist “USTR mentioned the possibility of both virtual and in-person talks, but we have insisted on direct discussions due to the importance of the issue. If all goes according to plan, a delegation led by the Commerce Adviser will leave for Washington this Sunday.”

He added, “We are hopeful that through meaningful dialogue, we will arrive at an acceptable resolution, and that the U.S. will reconsider the tariffs on Bangladeshi goods, given the significance of bilateral trade.”

DRAFT CONDITIONS, DELAYS, AND THE LOBBYING GAP

A senior official from the Ministry noted that Bangladesh has no intention of accepting USTR’s non-commercial conditions in their current form. However, instead of outright rejecting them, Dhaka plans to request an extended compliance period—five to ten years depending on the clause.

While Indonesia successfully reduced its reciprocal tariff from 32 percent to 19 percent by hiring a lobbying firm, Bangladesh has not taken similar steps. The official explained this is due to contextual differences. “Indonesia’s trade with China is far smaller than Bangladesh’s. The U.S. offered Bangladesh a different set of conditions, including a non-disclosure agreement, which was not required in Indonesia’s case. That’s why they could hire lobbyists, but we cannot,” he said.

IMPORT STRATEGY TO OFFSET TRADE DEFICIT

In an effort to balance the trade deficit with the U.S., Bangladesh is considering imports of American agricultural products, oilseeds, cotton, Boeing aircraft, military equipment, medical devices, and liquefied natural gas (LNG).

Beyond the reciprocal tariff issue, Bangladesh also wants to discuss the long-pending Trade and Investment Cooperation Framework Agreement (TICFA) and matters related to GSP Plus benefits. The U.S., however, seems more interested in signing non-disclosure agreements focusing on trade and regional security.

Without consensus on these key issues, the likelihood of having the new tariffs withdrawn remains slim.