Dhaka-Washington Free Trade Talks May Begin Soon; 8-Member Committee Formed in Dhaka for Swift Preparation

Dhaka-Washington Free Trade Talks May Begin Soon; 8-Member Committee Formed in Dhaka for Swift Preparation

Dhaka – The United States has agreed to begin discussions with Bangladesh on signing a Free Trade Agreement (FTA), which could open new doors for bilateral trade between the two countries. If the agreement is finalized, it would ensure duty-free access for Bangladeshi goods to the U.S. market, especially in the ready-made garments (RMG) sector.

Commerce Secretary Mahbubur Rahman stated that the U.S. has requested a draft of the agreement, and Bangladesh has already begun preparing it. An eight-member committee has been formed, tasked with preparing the draft within 15 days.

Currently, Bangladeshi apparel exports to the U.S. face an average tariff of 15%, while Vietnam pays only about 7%. Stakeholders, including the BGMEA, believe that an FTA would enhance Bangladesh's competitive edge in the U.S. market. Before 2013, Bangladesh enjoyed duty-free access to 97% of U.S. goods, though ready-made garments were excluded from that benefit.

Bangladesh primarily imports cotton, scrap metal, and agricultural products from the U.S., which are already subject to very low tariffs. Therefore, the Ministry of Commerce believes that while exports may increase significantly under an FTA, imports are unlikely to be heavily impacted.

In addition to the FTA negotiations, Bangladesh is advocating for a balanced agreement that would offer equal opportunities to both nations.