Govt to prioritise US in food and drink procurement: Commerce Secretary

To ease the 35% retaliatory tariff imposed by the United States, the government is working to reduce the current trade deficit between Bangladesh and the US. As part of this effort, the United States will be given priority in government purchases of food and drinks. Additionally, priority will also be given to buying Boeing aircraft and military equipment from the US, said Commerce Secretary Mahbubur Rahman.

He made these remarks on Tuesday (July 8) in response to questions from journalists at the Secretariat.

Mahbubur Rahman said, “President Trump has sent a new letter stating that a 35% retaliatory tariff will be imposed on Bangladesh, which will take effect from August 1. We have already sent our response regarding the draft framework agreement that was sent earlier, and several rounds of meetings have been held.”

He added that he has been participating virtually in all meetings. Advisors and security experts have also been present. Based on an important document received today, another meeting is scheduled for July 10 and 11. He is leaving for the US today to attend that meeting.

The Commerce Secretary said, “They have imposed tariffs on one hand but also sent proposals, which can be seen as an extension of the previous agreement. Since discussions are ongoing, we hope for a positive outcome.”

Regarding tariff reductions, he said, “Our main points will be, first, to reduce tariffs, and second, to ensure that we do not face difficulties in other trade-related issues. Our primary concern is to protect Bangladesh’s commercial interests and maintain existing trade in the US market. They have also proposed discussing gradual reductions in tariffs, VAT, supplementary duty, and regulatory duty. Decisions will be made after consultations with the National Board of Revenue (NBR) and other government bodies.”

On the products mentioned in the letter, he said, “For products on which they have requested concessions—such as wheat, soybeans, aircraft, and other machinery—we already have low tariffs. So, there is no problem with giving concessions in some cases. But American trade must increase in Bangladesh; otherwise, they will not give any concessions. So, we need to negotiate before making decisions.”

About plans to increase government trade, he said, “Almost all of our aircraft are Boeing. There are plans to buy new Boeing aircraft. We will also take initiatives to increase American cotton imports. The US will be given priority in government purchases of food and drinks. The US is also an important supplier of military equipment, and they will be given importance in this area as well.”

Speaking about military equipment, he said, “This includes vehicles, armored vehicles, and other hardware. The United States is not applying any pressure; they have simply requested to be given priority in procurement.”

Regarding the 2% Additional Import Tax (AIT) on cotton, he said, “It’s not a new issue and has been discussed for quite some time. However, it has little impact on bilateral trade, and negotiations usually involve some level of concession.”

On Bangladesh’s efforts to reduce the 26% tariff like Vietnam, he said, “We have always been active. Since the imposition of tariffs, advisors, myself, and others have sent letters and held five rounds of meetings. We have revised and sent drafts of the framework three times. We keep in constant contact through emails and calls. We have been fully engaged since April 2.”

He added, “The letter about the 35% tariff that came yesterday was unexpected because there was no prior information about it in the meetings scheduled for July 8-12.”

When asked if import-export pressures would increase if tariffs are not reduced, he replied, “There will be pressure; everyone knows that. That is why we are negotiating. We hope for some positive results.”

He also said, “The negotiation door is still open. We are talking and discussing. Advisors are there. I am going. We don’t go without hope. Hopefully, we will get good results through discussion.”