DHAKA, Apr 7: With the country hit by sluggish economic growth and instability, Bangladesh Chief Advisor Mohammed Yunus has written to US President Donald Trump asking for a three-month reprieve from the massive 37% tariffs slapped on exports to the US.
In addition, he offered a 50% cut in Bangladesh import duties on all American exports, according to The Business Standard BD.
As per the official letter received by The Business Standard BD, the move aims to buy Dhaka time for revising its import-export tolls, and implement the ongoing planned measures to boost imports from the United States.
In the letter, Yunus clarified Dhaka’s intent on cooperating with Washington and “substantially increase American exports to the fast-growing Bangladesh market of 170 million people.”
Stating that Bangladesh was the “first country to take such a pro-active initiative,” he added “We are also the first country to enter into a multi-year agreement to import liquefied natural gas (LNG) from the US and have been exploring further collaboration since you have lifted the freeze on LNG export permit. ”
Elaborating further on his measures to increase American exports to Bangladesh, Yunus’ letter read “A key focus of our action is to significantly increase our imports of US farm products including cotton, wheat, corn and soybean, which will contribute to the income and livelihood of US farmers. To increase speed to market of US cotton, we are finalizing dedicated bonded warehousing facility in Bangladesh where they will have duty free access.”
It further read “You will also be happy to know that Bangladesh has the lowest tariff on most US exports in South Asian region. We continue to commit to zero tariff on the above American agricultural commodities, as well as on scrap metals. We are working on 50% reduction of tariff on top US export items such as gas turbines, semiconductors and medical equipment.
“We are also removing an array of non-tariff barriers to US exports. We are eliminating certain testing requirements, rationalizing packaging, labelling and certification requirements and undertaking trade facilitation measures such as simplifying customs procedures and standards.”
Bangladesh has one of the highest levied charges on its exports to the US, and the highest in the region. This is debilitating to the country’s already fragile economic situation ever since the new government came into power.
Due to investors pulling out of the country due to political instability, administrative corruption, and security issues, Bangladesh’s industrial sector has been badly affected, in particular its textile industry and manufacturing.
(UNI)
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