Desk Report,
Exports and investments will be at risk if 35% tariff remains in place
We kind of wasted the first two months after the US imposed the counter-tariffs. During this time, none of us, the partners, could find out what the outcome of the talks with the US was. Then the US prepared a draft agreement framework, which included everything from zero tariffs to labor laws.
Exports and investments will be at risk if 35% tariff remains in place
Since the announcement of the tariffs last April, we have been hearing that the talks with the US are generally in favor of our trade and commerce interests. We also heard objections to some issues. But in the end, a 35 percent counter-tariff was imposed. We think this is a major failure of the government. Those involved in the negotiations should have a good understanding of the trade structure and history. We have not seen that.
However, we, from the industrial sector, have repeatedly said that the US is our main export destination. So why are we not moving forward by accepting the conditions they give? Where is our difficulty in accepting their conditions in bilateral trade with the US?
Vietnam has already negotiated and reduced the countervailing duty to 20 percent. India and Pakistan have not announced new duties yet. But if they can reduce the duty to around 10 percent, then I don’t know how we will maintain our business. We will not be able to survive in any competition.
Meanwhile, European companies want to reduce their dependence on Bangladesh. As a result, the main growth of our ready-made garment exports is coming from the United States. In this situation, if the 35 percent duty remains in place, our business will be severely affected. I think we are losing a big opportunity by not being able to facilitate the tariff negotiations. On the contrary, if we could go to a favorable tariff structure with the United States, investment in the country would increase along with exports. If we could reduce the countervailing duty to 10 percent, you will see people (businesses) from China rushing here. And if we cannot reduce the duty, at the same time, we will be at risk in terms of exports, foreign investment—everything.
