Bangladesh offers to import more from the US

Like much of the world, Bangladesh had a hard time at the beginning of April when it woke up from the news of a new mutual rate imposed by the Donald Trump administration. The interim government of the country, which is led by the well -known economist and Nobel Prize winner Muhammad Yunus, immediately waved action with an unforeseen plan to reduce the impact of a tariff war.

With a population of 170 million and a GDP per head of the population of around $ 2,550, the economy of Bangladesh strongly depends on the export of ready-made clothing (RMG) – AThe United States is the largest market for that sector.

Bangladesh, which used to pay an export obligation of 15 percent to gain access to the American market, was beaten with a 37 percent rate on its export to the US., Almost all consisting of items of clothing, with a value of around $ 9 billion.

Days after he announced the “Liberation Day” rates, Trump returned the course and announced a 90-day suspension of the rates in all countries except China. Bangladesh welcomed the move, but promised to continue working on a plan to bypass higher American rates.

Thank the US president “for responding positively to our request for a 90-day break about rates,” Yunus said that his administration would “Keep working with‘Trump’s administration to support its trade agenda.

The outlook on the US rate barriers – the largest export market in Bangladesh – led to great concern in Dhaka, especially in the context of the political and economic situation in the country.

Under 15 years of autocratic rule by Prime Minister Sheikh Hasina, the Bengal economy was signed by corruption and money laundering. A white book of a respected group of economists revealed that Every year more than $ 16 billion was washed from Bangladesh During the rule of Hasina by Tawanten and beneficiaries of her party, the Awami League.

Then on August 5, 2024, Hasina took dismissal under pressure from mass protests. When her government collapsed, the foreign reserves of Bangladesh were only $ 18 billion – hardly enough to cover three months of Bangladesh’s import payments.

Under the leadership of Yunus, the The reserves of the country have returned Up to $ 25.44 billion, reinforced by a record -high $ 3.29 billion in inward transfers. Despite the political unrest, Bangladesh’s economy seems to be on the right track, with the economy recently enjoying its best month so far. The interim government succeeded in maintaining essential prices at historically low levels during Ramadan, a time when prices usually rise.

It was at this point that the new American rates hit Bangladesh.

In response to the announcement of the rate, Yunus gathered a meeting with top officials And came up with a strategy that would probably appeal to the US president. He suggested increasing imports from the United States, reducing the trade gap between the two countries.

The core of Trump’s widely discussed and discussed rate policy is the concept of the trade shortage-the gap between import and export between the US and its trading partners. The rate formula of the administration is designed to “reduce trade debit and to level the international playing field.”

In a letter to Trump, Yunus Offered to stimulate the American import of Bangladesh. This includes buying various American farm products, such as cotton, tax -free, in an attempt to circumvent mutual rates.

Yunus also announced that Bangladesh pursues a rate reduction of 50 percent on important American export articles, including guest turbines, semiconductors and medical equipment. In addition, the country is planning to eliminate a series of non-tariff barriers for the US export, such as the removal of specific test requirements, streamlining packaging and simplifying labeling processes.

In the meantime, the 90-day suspension of the mutual rate offers a welcome postponement-in particular for textile expiders and offers the Yunus administration a valuable opportunity to pursue more targeted diplomatic and trade negotiations with the United States, including by involvement of the private sector.

According to government insiders, civil servants investigate cost -effective strategies to increase the import of the Cotton from the US, with the aim of staying competitive despite the higher logistics costs compared to the purchase of geographically poet suppliers such as China and India.

Stakeholders in the industry suggest that the possible shift of investments and production of textile products from American brands from China to Bangladesh can help compensate for these extra costs. They also point out that the higher American rate on the Chinese RMG creates a chance for Bangladeshi exporters to expand their market share in this segment.

In general, these initiatives of the Yunus government seem to be well calibrated under the current circumstances. They have a limited tax burden and offer a considerable diplomatic leverage and can be framed as the kind of “good deals” that can appeal to the Trump government.

Perhaps the biggest advantage of having an economist at the helm is that Yunus grabs this global dynamic and soil reality faster than most.