Economists and industry insiders urged the government to use the 90-day hiatus in the United States administration鈥檚 tariffs on exporting items to most countries, including Bangladesh.
They also said that it is unclear what will happen after 90 days, and this pause is not a solution, so the government must go for a long-term, sustainable solution.
They were speaking at a roundtable titled 鈥楿S Tariffs on Bangladesh鈥檚 Exports: Reciprocal Strategies and the Way Forward for Negotiations鈥�, which was organised by the Bangladesh Garment Manufacturers and Exporters Association along with trade bodies from textiles, pharmaceuticals, plastics, and other sectors in the capital on Saturday.
In his speech, M Masrur Reaz, chairman of the Policy Exchange Bangladesh, said that the government should take action and utilize the 90-day pause.
鈥業f we couldn鈥檛 seize the opportunity, we have to ring scramble alert again after 90 days. Through negotiation, we have to know the expectations of the US government regarding Bangladesh, their priorities, and their specific asks on trade surplus and tariff,鈥� he added.
He also asked the government to set the offerings if they want to offer to the US government.
鈥榃e are in an advantageous position regarding cotton imports, as our major competitors like India and Pakistan rely on their cotton, whereas we import it,鈥� he added.
He said that Bangladesh has to initiate some strategic offerings, as the US must import from Bangladesh, thanks to high product value in Vietnam and China.
Through coordination mechanisms and dialogue, Bangladesh can benefit from these geoeconomic issues.
He also urged the government to define concisely how US tariffs impact the country鈥檚 economy, not fully trust the US administration, and seek market-based and content-based solutions.
If Bangladesh wants to import more cotton from the US, it must establish proper infrastructure and a free zone for US cotton in the ports.
Muhibuzzaman, chairman of ACI Pharmaceuticals, said that the new tariff will hit the country鈥檚 major industries and value chain. However, as the US has decided to impose a 90-day pause, the government has the time to negotiate, and it should do so strategically.
He also stated that the pharmaceutical industry will face a significant challenge in the form of LDC graduation, which could negatively impact the sector. Without the generic, Bangladeshi manufacturers won鈥檛 be able to produce new products, he added.
In his speech, Md Anwar Hossain, administrator of the Bangladesh Garment Manufacturers and Exporters Association, said that the government is working on three fronts: tariff issues, LDC graduation, and transshipment through India.
鈥楬owever, the businesses also should help the government by providin required data. We should work through both on diplomatic channels and policy fronts,鈥� he added.
He also said that the industry and government work together for sustainability and compliance.
Anwar-Ul Alam Chowdhury Parvez urged the government to defer the LDC graduation by three years as the industries are yet to prepare.
鈥楾he government should resolve the issues related the NBR, gas and energy supply to attract investment,鈥� he added.
He urged the government to take immediate action through diplomacy and negotiations regarding the US tariff.
Hafizur Rahman, administrator of the Federation of Bangladesh Chambers of Commerce and Industry, said that Bangladesh should focus on reducing its trade gap with the US and must identify the US expectations of Bangladesh.
鈥榁ietnam and India might be signing an FTA with the USA soon, so Bangladesh should also focus on rationalizing trade and negotiations,鈥� he added, urging the government not to take any rigid decision.
Ganosamhati Andolan chief coordinator Zonayed Saki said that signing an FTA with the USA is important along with attempt to improve bilateral trade relations.
He also said as Bangladesh is going to be graduated from the LDC, the country must focus on labour law, labour situation, compliance and environmental policy.
Shamim Ahmed, the president of the Bangladesh Plastic Goods Manufacturers and Exporters Association, also spoke at the event.
BTMA president Showkat Aziz Russell moderated the event.
