DHAKA, May 17, (V7N)– The International Business Forum of Bangladesh (IBFB) convened a roundtable discussion today titled "Revamping USA-Bangladesh Trade" at its conference room in Tejgaon, Dhaka.

Dr. Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser, graced the event as the chief guest, with IBFB President Lutfunnisa Saudia Khan presiding over the session.

Dr. Chowdhury underscored the necessity of policy coordination, policy independence, and identifying effective negotiation strategies to navigate the complexities of global trade.

He noted the significant role of the USA in shaping world trade, stating, "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."

In a press release, Dr. Chowdhury added, "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 the Policy Research Institute of Bangladesh (PRI), presented the keynote paper for the discussion.

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

In his keynote address, Dr. Sattar highlighted the current flat 10 percent baseline tariff across all imports as "shocking."

He pointed out the application of variable tariff rates to the top 60 trading partners and higher tariffs imposed on nations considered "Worst Trade Offenders," citing examples such as the US tariff on China at 30 percent and China's tariff on the US at 10 percent, while tariffs for Canada and Mexico stand at 25 percent.

Suggesting a negotiation strategy, he proposed engaging the US to reduce tariffs on key US export items like agro-products, machinery, and automobiles. He also suggested focusing on low-revenue items (such as cotton and scrap metal, where tariffs are already near zero), adopting an MFN (Most Favored Nation) basis, and lowering Bangladesh's own tariffs on non-RMG items (e.g., footwear) to reduce anti-export bias.

Dr. Sattar noted that trade diversion could benefit Bangladesh due to China's significant tariff burden (54 percent), while cautioning about the risk of a one percent shrinkage in global GDP and a three percent decline in trade, with Asia being particularly vulnerable.

Regarding the RMG sector, Dr. Zaidi Sattar recommended collaborating with buyers to share increased costs, emphasizing that limited bargaining power makes price adjustment critical.

He highlighted the economic dominance of China and the US, stating that the US, with a GDP of US$26 trillion, accounts for a quarter of the world's GDP, followed by China with US$16 trillion.

"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.

Professor Mustafizur Rahman emphasized the need to strengthen 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 CPD Distinguished Fellow added.

Addressing the session chair, IBFB President Lutfunnisa Saudia Khan underscored the USA's importance as a major trade partner for Bangladesh, particularly as a leading market for the country's Ready-made Garments (RMG) sector.

She noted that the suspension of GSP benefits and the rise of protectionist policies in recent years have negatively impacted Bangladesh's competitiveness in key sectors like garments, leather, and light manufacturing, leading to reduced export performance, slower job growth, and affected investor sentiment.

BIISS Research Director Dr. Mahfuz Kabir suggested that the Trade and Investment Cooperation Framework Agreement (TICFA) is the appropriate platform to discuss these issues and initiate the negotiating process.

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

The roundtable discussion was moderated by MS Siddiqui, Chairman of the Governmental Relation and Advocacy Committee of IBFB, with participation from representatives of various chambers and trade bodies, as well as business leaders, in the open discussion session.

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