The Bangladeshi government is considering the elimination of import tariffs on approximately 100 products to enhance trade relations with the United States. This move comes amid ongoing negotiations over tariff rates between the two nations and aims to reduce the trade deficit.
The proposed list encompasses a diverse range of items, including machinery, parts, raw materials for the country’s thriving ready-made garment (RMG) sector, man-made fibers, wool, effluent treatment plants, dialysis filters, fire extinguishers, and certain arms. Currently, these goods face import taxes as high as 37 per cent.
Officials from the National Board of Revenue (NBR) revealed that the plans were discussed during a meeting with Chief Adviser Muhammad Yunus ahead of the upcoming fiscal year 2025-26 budget.
In accordance with World Trade Organization (WTO) rules, the tax removal would reportedly apply to imports from all countries, not solely the US. Nonetheless, officials expect that the move will significantly boost US imports into Bangladesh.
Data from the NBR shows that the 161 products under consideration were imported in FY ’24 valued at approximately Taka 28,000 crore (around US $ 3.2 billion), generating about Taka 610 crore in revenue. The government believes that removing tariffs on these products would have a minimal impact on revenue but could substantially increase import opportunities, particularly from the US, thereby helping to bridge the trade gap.
The move follows recent US trade policy adjustments. On 2nd April, the Trump administration imposed substantial tariffs on numerous countries, including a 37 per cent tariff on Bangladeshi products. Prior to this, Bangladeshi goods entering the US faced tariffs averaging around 15 per cent. The US later retained a 10 per cent tariff while suspending the remainder for three months.
Bangladesh has been engaged in negotiations with the US to reduce the trade imbalance, which currently favors the US. In FY ’24, Bangladesh imported goods worth US $ 2.2 billion from the US, while exports to the US reached US $ 8.4 billion, making the US, Bangladesh’s largest export market.
The proposed tariff reductions, particularly in the textile sector, are seen as a strategic move to strengthen trade ties and support Bangladesh’s export-driven economy, especially its vital garment industry.
