LDC graduation a ‘time bomb’, warns commerce adviser

Commerce Adviser Sheikh Bashir Uddin has described Bangladesh’s graduation from Least Developed Country (LDC) status as a “time bomb left behind by the previous fascist government,” warning it will bring more challenges than opportunities in the future.

Speaking at a welcome reception hosted by the Bangladesh Textile Mills Association (BTMA) at Gulshan Club, Dhaka, on Sunday night, he urged business leaders to prepare for the post-LDC era, when Bangladesh will lose all preferential trade benefits.

“We expect to resolve the US reciprocal tariff issue soon. We may need to go to the US for further negotiations within the next two to three weeks. Our success so far came from combined efforts,” he said.

Representatives from the FBCCI, BGMEA, BKMEA, DCCI, LFMEAB, BGAPMEA, BGBA, BTTLMEA, ICC-Bangladesh, BCI, and other associations attended the event.

The adviser noted Bangladesh exports about US$8 billion to the US and aims to reduce the trade gap with the country by 75% within the interim government’s tenure.

“But we must also focus on $42 billion worth of exports to the European market, where we will lose preferences after graduation. I’m surprised no one is talking about it, almost everyone is silent. How will we survive?” he asked, calling for collective action.

US tariff could drop below 20%, says security adviser

National Security Adviser and High Representative to the Chief Adviser for the Rohingya issue, Khalilur Rahman, said the 20% tariff on Bangladeshi goods entering the US could be reduced further as negotiations continue.

“We worked relentlessly to cut the tariff from 35% to 20%. We hope it will come down more,” he said.

On 31 July, the US reduced its tariff on Bangladeshi products from 35% to 20% after final-round trade talks.

Rahman said the negotiations were based on three principles. First, the unelected interim government cannot bind the next government, which must be free to amend or cancel the deal.

Secondly, commitments will only be made if they can be met – otherwise, the US can cancel the agreement and impose a 37% tariff.

Also, the deal applies only to the US and will not be extended to any third country to avoid geopolitical entanglements.

Industry leaders pledge investment if supported

BTMA President Showkat Aziz Russell thanked the government for its role in the US talks.

He said members of BTMA and BGMEA have already invested $75 billion in the sector. “If we get proper support, we will invest more and create more jobs,” he said.

BGMEA President Mahmud Hasan Khan welcomed the tariff cut, saying it put Bangladesh in a stronger position than competitors.

“We must take advantage,” he stressed, noting buyers would bear the additional cost.

BKMEA President Mohammad Hatem urged the government to address customs-related delays.

Commerce Secretary Mahbubur Rahman said discussions began on 2 April, after the US imposed reciprocal tariffs on 154 countries, including a 37% rate on Bangladesh.

“We are now in a better position than others. We will keep engaging to secure more benefits for businesses,” he said.