Business Desk, Bangladesh Global: Bangladesh and the United States discussed tariff reductions, the use of US raw materials and labour law reforms at talks between the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the US Trade Representative (USTR) on Monday. The talks, hosted at the Chief of Mission's Residence in Gulshan by the US Embassy, brought together a BGMEA delegation led by President Mahmud Hasan Khan Babu and a US team headed by Assistant Trade Representative Brendan Lynch.
Mahmud Hasan Khan Babu highlighted that while Bangladesh has achieved a 20 percent tariff benefit, the average Most Favoured Nation (MFN) tariff on apparel exports to the US is 16.5 percent. Combined with the 20 percent countervailing duty, total tariffs reach around 36.5 percent, posing challenges for exporters. He urged further duty reductions and proposed a “stacking method” to ease the burden and boost competitiveness.
The meeting also covered a US executive order granting partial exemptions from the additional 20 percent duty if at least 20 percent of raw materials are sourced from the US. BGMEA welcomed the initiative but sought clarity on evaluation and traceability, with the US side saying a resolution is expected soon.
The US delegation also called on Bangladesh to align its labour laws with international standards and ILO guidelines. Both sides expressed satisfaction with the discussions and hope for increased US imports from Bangladesh to help narrow the trade deficit.
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