Staff Reporter, The Voice
The United States and Bangladesh are set to resume the third and final round of crucial tariff negotiations on July 29, 2025, at the USTR office in Washington D.C., signaling progress in a long-standing effort to modernize and enhance bilateral trade relations.
Bangladesh’s Commerce Secretary Mahbubur Rahman confirmed that the United States Trade Representative (USTR), the chief trade negotiation body for the U.S. government, has invited the Bangladeshi delegation for the upcoming round of talks. Rahman informed The Daily Star over the phone that Bangladesh had initially proposed July 26 as the meeting date, following the submission of its official position paper to USTR on July 22. However, the U.S. side finalized July 29 as the new date.
The Bangladeshi team will be led by Commerce Adviser Sk Bashir Uddin, reflecting the significance Dhaka places on resolving tariff disparities and securing favorable market access for its exports, particularly in the apparel sector—Bangladesh’s largest foreign exchange earner.
Background
The talks are part of ongoing discussions to address tariff barriers and enhance trade facilitation between the two nations. While Bangladesh has long enjoyed preferential trade benefits under the Generalized System of Preferences (GSP), those benefits were suspended by the U.S. in 2013 following concerns over labor rights and factory safety in the wake of the Rana Plaza collapse.
Since then, Bangladesh has taken several steps to improve compliance with international labor standards, hoping to regain favorable access to U.S. markets. However, reinstatement of GSP benefits has remained elusive, partly due to complex legislative and policy constraints in the United States.
According to trade analysts, the current negotiations are focused on:
- Eliminating or reducing duties on key Bangladeshi exports, especially ready-made garments (RMG)
- Increasing transparency and consistency in trade-related policies
- Addressing U.S. concerns regarding labor rights, intellectual property, and customs procedures
Bilateral Trade Snapshot
In 2024, the total trade volume between the U.S. and Bangladesh reached approximately $14 billion, with Bangladesh maintaining a trade surplus. The U.S. is the single largest export destination for Bangladeshi goods, including garments, textiles, and leather products.
U.S. trade officials, meanwhile, are keen to explore new commercial opportunities in Bangladesh, particularly in areas such as energy, ICT, and pharmaceuticals.
What Comes Next?
If the July 29 talks reach a consensus, both countries could move toward a more comprehensive trade framework. However, any final agreement would likely need to be ratified or supported through legislative or executive actions on both sides.
The outcome could significantly influence the future of Bangladesh’s export growth and U.S. engagement in the Indo-Pacific region.
