Desk Report,
Businessmen come forward to increase imports from the United States
The Trump administration in the United States has reduced the countervailing duty on Bangladeshi exports from 35 percent to 20 percent. Before the White House’s announcement on Thursday, a delegation of the Bangladesh government held formal discussions in Washington, D.C., on the issue. Along with the government team, private sector entrepreneurs visiting the United States have also taken various steps to reduce the trade deficit between the two countries. These entrepreneurs have reached agreements and commitments with US exporters to increase imports. The US administration has finally reduced the countervailing duty rate on Bangladeshi products with the combined efforts of the public and private sectors.
Businessmen come forward to increase imports from the United StatesBusinessmen come forward to increase imports from the United StatesBusinessmen come forward to increase imports from the United States
The group of businessmen visiting the US as representatives of the private sector includes Meghna Group of Industries (MGI) Chairman Mustafa Kamal, LPG Operators Association of Bangladesh President Amirul Haque, Bangladesh Textile Mills Association (BTMA) President Shawkat Aziz Russell, BTMA Directors Mosharraf Hossain and Masud Rana, and Salma Group Director Chowdhury Mohammad Hanif Shoaib. It is learned that the Bangladesh government’s Ministry of Commerce is negotiating with the Office of the United States Trade Representative (USTR) to reduce the countervailing duties. From the beginning, people have been sent for this purpose, but they could not take the negotiations to a certain stage. Trade Advisor Sheikh Bashiruddin took the lead before the second round of formal meetings in July. Business leaders requested that businessmen and economists be involved in the negotiation process from the beginning. The government involved businessmen in this process at the very last moment.
At the government’s request, traders started communicating with US agricultural exporters from the last week of July. After going to the US, the business delegation held a series of meetings with US exporters on Wednesday and Thursday. In these meetings, they immediately signed agreements to import soybean seeds and cotton worth $268 million. They also promised to import a large amount of goods.
It was learned from talking to traders that after several rounds of discussions, an immediate agreement was reached to import about four hundred thousand tons of soybean seeds from the US. Meghna Group of Industries Chairman Mustafa Kamal has signed an agreement to import three hundred thousand tons of soybean seeds worth $130 million. Delta Agro Food Industries Managing Director Amirul Haque has signed an agreement to import about $100 million worth of soybean seeds. Soybean seeds are the raw material for making soybean oil and animal feed.
When asked, Meghna Group of Industries (MGI) Chairman Mustafa Kamal told Prothom Alo from Washington, USA, “We immediately signed a memorandum of understanding to import soybean seeds from a supplier company due to competitive prices. In addition, we have promised to increase the import of corn, LPG, and wheat. This initiative has been taken to reduce the US counter-tariff by reducing the trade deficit.”
According to the National Board of Revenue (NBR), about $2.5 billion worth of goods were imported from the US in the 2023-24 fiscal year. Of this, scrap or old iron pieces, soybean seeds, cotton, and LPG—these four products—were imported for about $1.5 billion, which is 60 percent of the total imports. Again, in the last fiscal year, the total imports of these four products in Bangladesh were $7.4 billion. Accordingly, these four products are imported from the US for 20 percent of the total imports. Therefore, businessmen have promised that it is possible to increase the import of these products from the US.
It is learned that in addition to soybeans, textile sector traders visiting the United States have signed agreements to import cotton. Three textile sector companies have signed agreements to import 19,000 tons of cotton worth $38 million. Among them, Salma Group has signed an agreement to import 6,000 tons of cotton worth $12 million from Cargill Inc. of the United States. Asia Composite has signed another similar agreement. In addition, Mosharraf Group has signed an agreement to import 7,000 tons of cotton worth $14 million from the American Louis Dreyfus Group.
When asked, BTMA President Shawkat Aziz Russell told Prothom Alo, “We have pledged to import cotton worth one billion or one billion dollars from the United States. We have also informed that if we export using American cotton, we will get benefits in export. Then cotton imports will increase further. Both countries will benefit.’
Mosharraf Hossain, Managing Director of Mosharraf Composite Textile Mills, said, ‘According to the MoU we have signed for the import of cotton, all that cotton will be imported within the next six months. For this, we have sought low-interest loan assistance from the Trade Advisor.’
