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Tuesday, 15 Jul 2025

The main negotiation is about non-trade terms

Staff Correspondent
Published: Tuesday, July 15, 2025 09:49 AM
The main negotiation is about non-trade terms

In the talks to reduce the 35 percent tariff imposed by the United States on Bangladeshi goods, other issues besides trade have become important. The main negotiations are being held on various terms outside of trade. This information has been learned from multiple sources related to the second round of meetings between Bangladesh and the Office of the United States Trade Representative (USTR). The meeting was held in Washington last week.

Meanwhile, Trade Advisor Sheikh Bashiruddin, who returned from Washington, held a meeting with businessmen and experts on Monday. In the meeting, he mentioned various conditions outside of trade, but the Trade Advisor did not give any details. This is because the government has an agreement with Washington not to disclose in advance about a possible tariff agreement. At the press conference, the Trade Advisor did not answer many questions. Citing the reason for not answering, he said that Bangladesh has a non-disclosure agreement (confidentiality agreement) with the United States in this regard. As a result, it is not possible to give details.

Meanwhile, at a press conference after yesterday's meeting, the trade advisor said that there will be a third phase of talks with the United States. Preparations are being made for this. Time has been requested from the United States for the talks. Time will be available by the middle of next week. It is hoped that Bangladesh will be able to continue doing business in the US market with its capacity. It will be able to set tariffs at a reasonable level before August 1. Incidentally, the United States has written to Bangladesh stating that a 35 percent tariff will be imposed on Bangladeshi products from August 1. However, the country has also said that it will keep the door open for talks.

At the press conference, Commerce Secretary Md. Mahbubur Rahman said, 'We are taking the announcement of countervailing duties as a potential major impact for Bangladesh and are taking it seriously. Some work has been done, more needs to be done. As part of that, we discussed with stakeholders. We took their opinions.'

On behalf of the traders, BKMEA President Mohammad Hatem said, "The government is giving utmost importance to tariff negotiations with the United States. We are satisfied with the progress of the negotiations that the government has informed us about."

Speaking to those involved in non-trade issues , it is learnt that the US is seeking a framework agreement that will also include security issues. This means that they want to engage with Dhaka not just on trade but on broader strategic issues. The main objective is to ensure that Bangladesh does not lean too much towards China. The discussions with the US are not limited to trade alone; there are also issues of broader strategic relations.

Sources said the US wants Bangladesh to support its Indo-Pacific Strategy (IPS). This is a broad US strategy that aims to counter China's influence by strengthening economic and security cooperation across the region. During the tariff talks, the US expressed concern about China's growing trade and investment in Bangladesh. The country wants Bangladesh to discourage trade and investment with China.

The source further said that Bangladesh is negotiating on some more sensitive conditions. There is a condition that if the US imposes sanctions on any country, Bangladesh will also have to comply with it. That is, Bangladesh will also have to refrain from trade and investment activities with the country that the US has imposed sanctions on. Apart from this, there is a condition that the US products that Bangladesh will provide duty-free benefits to will not be provided to any other country.

Energy Advisor Fawzul Kabir Khan told reporters at the Secretariat on Sunday that the US has proposed a preliminary framework agreement in the second round of talks, in which it wants to include various issues, including security concerns.

He also said that America has some strategic issues. These include security and trade with other countries. The advisor said this in response to a question at a press conference organized by a committee formed by the government to make trade, industrial ports and revenue more dynamic. He is the head of that committee.

HN/ MR

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