DHAKA, May 17, 2025 (BSS) - International Business Forum of Bangladesh (IBFB) organised a roundtable discussion titled "Revamping USA-Bangladesh Trade" today at its conference room in the capital's Tejgaon area.
 
Dr. Anisuzzaman Chowdhury, special assistant to the Chief Adviser, attended the roundtable as the chief guest with IBFB President Lutfunnisa Saudia Khan in the chair.
 
Chowdhury stressed the need to have policy co-ordination, policy independence and to find out effective ways of negotiations to tackle the challenges in world trade.
 
The USA would administer the world trade, he said, adding: "So, we have to create a strong lobby with the US and we have to bring out a new traction to cope up with the changed situation."

Dr. Chowdhury, in a press release, said: "International circumstances are now different, we have to build self confidence and ultimately we have to bring diversification in our economy. The government will form a specialized trade negotiation body ahead of graduation."

Dr. Zaidi Sattar, chairman & CEO of Policy Research Institute of Bangladesh (PRI), presented a keynote paper on the occasion.

Distinguished Fellow of Centre for Policy Dialogue (CPD) Professor Mustafizur Rahman, President of American Chamber of Commerce in Bangladesh Syed Ershad Ahmed and Research Director of Bangladesh International Institute of Strategy Studies (BIISS) Dr. Mahfuz Kabir attended the discussion as distinguished speakers.

Noted economist Dr. Sattar, in his keynote, mentioned that as a baseline tariff, currently there are flat 10 percent across all imports which is shocking.

He said the variable tariff rates applied to top 60 trading partners and higher tariffs imposed on nations considered "Worst Trade Offenders". US Tariff on China 30percent & China Tariff on US is 10 percent while 25 percent for Canada and Mexico.

Suggesting to go for negotiation strategy, he said engaging US to reduce tariffs on key US export items like agro-products, machinery, autos, he said focusing on low-revenue items (cotton, scrap metal tariffs already near- zero), MFN basis and lower own tariffs on non-RMG items (e.g. footwear) to reduce anti-export bias.

The trade diversion could benefit Bangladesh due to China's tariff burden (54pc) while there will be risk of global GDP shrinking by one percent, trade by three percent, Asia particularly vulnerable.

In terms of RMG sector actions, Dr. Zaidi Sattar suggested to collaborating with buyers to share increased costs, mentioning that limited bargaining power makes price adjustment critical.

Citing that China and the US are the two largest economies in the world, he said that the US, at US$26 Tr, commands a quarter of world GDP while China is next, with US$16 Tr.
 
"The two makeup over 40 percent of world GDP. The two are also the largest trading economies in the world-- 33 percent of world trade. China is the largest exporter while the United States is the largest importer," Sattar added.

Prof Mustafizur Rahman suggested strengthening negotiating capacity. "We can sign Free Trade Agreement (FTA) or Preferential Trade Agreement (PTA) with the US, but it will not be so easy," he said.

"US Tariff is called reciprocal but in fact it is irrational and one-sided. We need to bring the tariff issue to the TICFA platform but we are yet to ready for that," the distinguished Fellow of CPD added.
 
Addressing the session chair, IBFB President Lutfunnisa Saudia Khan said the USA is a major trade partner of Bangladesh, especially as a leading market for the country's exports mainly in the Ready-made Garments (RMG) sector.

She said the suspension of GSP benefits and the rise of protectionist policies in recent years have impacted the country's competitiveness in key sectors like garments, leather and light manufacturing-hurting export performance, slowing job growth and affecting investor sentiment.

BIISS Research Director Dr Mahfuz Kabir said TICFA is the proper platform to discuss the issue and begin the negotiating process.

"I believe that signing agreements like IPF or FTA will not be effective," he added.

Chairman of the Governmental Relation and Advocacy Committee of IBFB, MS Siddiqui moderated the roundtable discussion while representatives from different chambers and trade bodies and business leaders participated in the open discussion session.