Major garment producer Bangladesh eyes US trade agreement
Bangladesh, the world's second-largest producer of garments, is actively seeking a trade agreement with the United States. This effort, confirmed by the nation's highest commerce official to AFP, comes ahead of President Donald Trump's impending tariffs, which are set to take effect next week.
To address the trade deficit—the very justification cited by President Trump for imposing significant levies in his "Liberation Day" announcement—Dhaka has put forward proposals to purchase Boeing aircraft and increase imports of American wheat, cotton, and oil.
"We have finalized a draft reciprocal trade agreement," stated Mahbubur Rahman on Wednesday, expressing the government's optimism for achieving a "win-win agreement." Rahman also mentioned that a meeting between officials from both nations is scheduled for July 8, highlighting that the United States accounts for 20 percent of Bangladesh's ready-made garment exports.
The textile and garment sector contributes approximately 8% to Bangladesh's total exports. This industry has been in a phase of recovery since it was severely impacted by a student-led revolution that led to the government's overthrow last year.
In his April 2 announcement, Trump imposed tariffs of 37% on Bangladesh, a rate more than double the existing 16% levy on cotton products. While he postponed the implementation of these higher duties until July 9—a deferral also extended to other international trading partners—a foundational 10% tariff remained in effect.
Data from the Bangladesh Bank and the National Board of Revenue indicates that in 2024, Bangladesh exported goods valued at $8.36 billion to the United States, while its imports from the US totaled $2.21 billion.
Rahman elaborated, stating that "as part of the initiative to reduce the trade gap, the government already decided to import a large volume of wheat, purchasing 14 aircraft from US manufacturer Boeing, buying cotton and more oil and gas from the US farms." Although he did not provide precise details regarding the timing or scope of the proposed agreements, Rahman confirmed that the government has engaged in approximately 28 meetings and document exchanges in pursuit of a resolution.
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