Commerce Adviser Sk. Bashir Uddin -File Photo

DHAKA, Sept 14, 2025 (BSS) – Commerce Adviser Sk. Bashir Uddin today hoped that the already imposed US reciprocal tariff rate of 20 percent on Bangladeshi products may reduce further as the trade gap between the two countries continues to shrink riding on increased imports.

Bashir made the remarks at a press conference held at the commerce ministry at Bangladesh Secretariat today after a meeting with Brendan Lynch, assistant US trade representative for South and Central Asia.

He said the reduction of the tariff rate depends on the increase in imports of US goods to narrow the bilateral trade gap.

Bashir also said a trade agreement between Bangladesh and the USA may be signed this month as the issue was widely discussed at the meeting.

Mentioning that the day’s meeting with the USTR was held in continuation of the previous parleys in the USA, the Commerce Adviser said in the context of reducing the trade deficit, Bangladesh has requested the USTR to reduce further the reciprocal tariff. “They (US side) have assured that if the trade gap continues to shrink, then there is a possibility of further tariff cut,” he said. 

He said the discussions also aim to strike a trade agreement with the US. 

Commerce Secretary Mahbubur Rahman said that the trade deficit between Bangladesh and the USA accounts for around $6 billion and to reduce such trade gap, Bangladesh had earlier gave commitments to raise its purchase like soybean from the USA.

“If we can reduce further the trade gap with the USA, can keep intact our exports, then we can avail some extra facilities,” he added.

Mahbubur said apart from the standard of product, there is also a need to look at ‘ensured supply’.

Sk. Bashir Uddin said that the progress in talks with the US side is satisfactory while the economic capacity of both the countries is increasing.

“We’re trying to reduce the existing trade gap with the USA through importing energy and agricultural products while we’re importing these products from the US at a cost-efficient price compared to the international market. So, there is progress and apart of these, we will also procure aircrafts,” he added.

Bashir said the progress has been reviewed while the achievements made in reducing the trade deficit are satisfactory.

Answering to a query, he said they are trying to avail some additional facilities form the3 USA in the RMG sector while based on today’s meeting, they are hopeful that there would be progress in this regard.

He said that the trade related issues dominated the day’s discussions while there was no discussion on labour rights issues.

Replying to another question on US cotton, the Commerce Adviser said that Bangladesh can meet only 2 percent of its overall cotton demand through local production while the rest of 98 percent cotton needs to be imported.

“Our goal was to reduce further the tariff based on such procurement and we’ve got assurance that if we can reduce further the trade gap, then there is possibility of further reduction in US tariffs,” hoped the Adviser.

When asked whether there will be any agreement, the Commerce Adviser said they are hopeful of such deal within this month. “Hopefully it will be done as soon as possible,” he added. 

Replying to another question, he said that there is qualitative difference between the Russian wheat and the US wheat as the protein content of US wheat is higher. There is different price tier of wheat from Russia, Canada, Australia, USA and Argentina, he said.

Replying to another query, Bashir said that the import price of agricultural products from the USA is now comparatively less.

Citing that China has already imposed tariff on US agricultural products for which a gap has been created in demand and supply, the Adviser said for this they are being able to procure goods at a lesser price. 

Responding to another question, Bashir said the issue of reducing further the tariff rate would depend on the scale of reduction in trade gap between the two countries.

On procurement of Boeing aircrafts, he said the delivery schedule of either Boeing or Airbus is now very long as both the companies could not make delivery upon fresh orders before 2032.

“So, it’s a long-term procurement plan and it’s not easy to take the delivery tomorrow while ordering it today,” he said.

The Commerce Adviser noted that the long-term procurement of Boeing aircrafts would help to minimize the trade gap, but not at present.

He said with additional procurement of agricultural products, energy products and Boeing aircrafts, if Bangladesh can reduce the trade gap in a significant manner, if the country can get access to the US market through a preferential manner, then Bangladesh’s exports to USA would increase alongside imports.

Bangladesh is targeting higher imports of US liquefied natural gas, wheat, soybeans, and cotton to reduce the trade gap with the Trump administration.

Currently, two-way trade between Bangladesh and the USA is heavily tilted towards Bangladesh because of the large volume of garment exports from the South Asian nation.

Annually, Bangladesh exports goods worth over $8.2 billion to the USA, while imports amount to $2 billion.