Written by The Banking Post
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has held a meeting with the US Assistant Trade Representative (USTR) team, which is in Dhaka to finalise an agreement on imposing additional duties on Bangladeshi exports.
In a media statement on Monday, the BGMEA described the meeting with the US delegation, led by Brendan Lynch, as “fruitful”, which took place at the US Embassy Chief of Mission’s residence in Gulshan, Dhaka.
BGMEA President Mahmud Hasan Khan said: “We have secured a 20 percent tariff concession, which is a positive development. However, the average MFN (Most-Favoured-Nation) tariff on Bangladesh’s exports to the US is 16.5 percent.”
“With the 20 percent countervailing duty, the total tariff rises to around 36.5 percent, creating new challenges for Bangladesh’s garment exports to the US.”
He urged the US assistant trade representative to further reduce tariffs to sustain the trend of exports to the US market.
Mahmud also said, “This tariff can be coordinated with other products using the stacking method. This strategy will reduce the tariff burden and increase the competitiveness of Bangladesh’s export products in the US market.”
If garments exported from Bangladesh use 20 percent or more of US-made raw materials, the additional 20 percent tariff imposed on those products will be partially exempted in proportion to the US material content.
BGMEA leaders welcomed the initiative but sought clarification on how US material usage will be assessed.
The US delegation said Customs is addressing the matter, and completion is expected within the stipulated time.
