CPD fellow urges reassessment of Bangladesh-US trade agreement

CPD Distinguished Fellow Mustafizur Rahman has said that the trade agreement (tariff-related agreement) signed with the United States needs to be reviewed.

He argued that imposing an additional 10 percent tariff by the United States would not solve the issue of forced labor; instead, it could worsen the situation.

Last Tuesday, the Office of the United States Trade Representative proposed additional tariffs on products from 60 countries, including Bangladesh, alleging failures to prevent imports of goods produced through forced labor.

The United States is seeking to impose an extra 10 to 12.5 percent tariff on products from these countries. Journalists raised the issue during a press conference organized by Centre for Policy Dialogue on Thursday ahead of the national budget.

Responding to the question, Mustafizur Rahman said that the United States often views issues through its own lens and may not fully understand Bangladesh’s realities. He noted that child labor exists in brick kilns and other sectors, and that many children work due to family necessities.

He questioned the U.S. approach, arguing that instead of providing support funds to help reduce child labor, imposing an additional 10 percent tariff on exports raises concerns about the real objective behind the measure.

He further explained that the United States had previously imposed reciprocal tariffs on 60 countries, but only nine countries reached agreements with Washington. Bangladeshi exports to the US currently face an average tariff of 15 percent. With an additional 19 percent tariff under the existing agreement, the total rate rises to 34 percent.

If another 10 percent tariff is added, the overall tariff burden would reach 44 percent. He stressed that policymakers must consider what such a level of tariffs would mean for Bangladesh’s competitiveness.

Given the emerging situation, Mustafizur Rahman emphasized that the U.S.-Bangladesh tariff agreement should be reviewed and renegotiated. “This agreement certainly needs to be discussed again,” he said.