A senior U.S. trade delegation will arrive in Dhaka on Sunday for a two-day mission aimed at negotiating a further reduction in tariffs on Bangladeshi exports to the U.S., which are currently set at 20%. The delegation, headed by Brendan Lynch, Assistant U.S. Trade Representative (USTR) for South and Central Asia, will engage in a series of meetings with senior Bangladeshi officials to finalize a draft trade agreement and advance negotiations.
The U.S. team’s visit follows two trips by the Bangladeshi delegation to the United States, with the goal of resuming discussions.
The talks will focus on reducing the existing 20% reciprocal tariff on Bangladeshi exports to 15%, building on the progress achieved from previous negotiation rounds.
Following weeks of negotiations, the U.S. government reduced the reciprocal tariff on Bangladeshi exports from 35% to 20% on August 7. However, no formal deal was finalized. Since then, Dhaka has continued urging Washington to lower the rate further to 15%, emphasizing that such a move would support export growth amid persistent global trade pressures.
During the visit, the USTR delegation will hold meetings with Bangladesh’s interim government Chief Adviser Professor Muhammad Yunus, Foreign Affairs Adviser Md Touhid Hossain, Foreign Secretary Asad Alam Siam, and senior officials from the commerce ministry. The tariff reduction discussions come with reciprocal commitments, notably increased imports from the United States.
As part of this arrangement, Dhaka has committed to boosting imports from the U.S. by $1.5 billion over the next 12 to 18 months. Additionally, Bangladesh has agreed to purchase 25 Boeing aircraft valued at around $6 billion, with the exact timeline for the deal to be determined later.
Additional commitments involve Bangladesh importing 700,000 tons of wheat over the next five years, even if it comes at a slightly higher cost. The country also plans to scale up imports of military hardware, civil aviation spare parts, cotton, edible oils, and liquefied natural gas (LNG) under long-term contracts. To encourage U.S. investment, the government will simplify the no-objection certificate procedure and implement a transparent approval system to support two-way capital movement.
Bangladesh has further promised to offer both tariff and non-tariff incentives to boost U.S. export access to its domestic market.
TRADE TECH | Indonesia Set to Issue Import Approval for iPhone 17
