US collects over $1 billion a year in tariffs on Bangladeshi goods: CPD
The United States collects more than $1 billion annually in tariffs on goods exported by Bangladesh, while Bangladesh gets about $180 million in duties on American products, according to an analysis by the Centre for Policy Dialogue (CPD) unveiled today.
The CPD said Bangladesh imposes customs and other duties averaging 6.2 percent on US imports. However, when rebates are taken into account, the weighted average duty drops to 2.2 percent.
For all latest news, follow The Daily Star's Google News channel. In contrast, the weighted average tariff on US imports from Bangladesh stands at 15.1 percent.
Total US duty on apparel imports from Bangladesh amounts to over $1 billion, said Professor Mustafizur Rahman, a distinguished fellow of the CPD, at a dialogue titled "Trump Reciprocal Tariffs and Bangladesh: Implications and Response," held at the Lakeshore Hotel in Dhaka.
The CPD suggested that Bangladesh should closely monitor the impact of US tariffs on its export competitiveness, particularly in comparison with countries such as Vietnam.
It also recommended that Bangladesh explore strategic options, including engaging with the US through the Trade and Investment Cooperation Forum Agreement (TICFA).
The country may request a list of products on which the US would like to see duty-free or reduced-duty access when exporting to Bangladesh.
However, if Bangladesh offers tariff concessions to the US on certain products, it would be obliged to extend the same treatment to all trading partners under the Most Favoured Nation (MFN) principle.
Depending on the product categories, this could have notable revenue implications.
A Free Trade Agreement (FTA) with the US could address such concerns, the CPD noted.
Bangladesh could also consider offering special warehouse facilities for cotton imports from the US, which may facilitate negotiations on tariff waivers for apparel made with US cotton.
Comments