Major garment producer Bangladesh eyes US trade deal
Dhaka is proposing to buy Boeing planes and boost imports of US wheat, cotton and oil in a bid to reduce the trade deficit, which Trump used as the reason for imposing painful levies in his 'Liberation Day' announcement.
'We have finalised a draft reciprocal trade agreement,' Mahbubur Rahman said Wednesday, adding the government was 'hopeful of reaching a win-win agreement'.
Rahman said a meeting between officials from both countries was slated for July 8, with the United States representing 20 percent of Bangladesh's ready-made garments exports.
Textile and garment production accounts for about 80 percent of exports in Bangladesh and the industry has been rebuilding after it was hit hard in a student-led revolution that toppled the government last year.
Trump hit Bangladesh with 37 percent tariffs in his April 2 announcement, which is more than double the 16 percent already placed on cotton products.
He suspended the tolls' introduction until July 9, as he did with other global trading partners, though a baseline 10 percent levy was kept in place.
Bangladesh exported $8.36 billion worth of goods to the United States in 2024, while imports from there amounted to $2.21 billion, according to the Bangladesh Bank and the National Board of Revenue.
- Planes, oil, cotton -
'As part of the initiative to reduce the trade gap, the government already decided to import a large volume of wheat, purchasing 14 aircraft from US manufacturer Boeing, buying cotton and more oil and gas from the US farms,' Rahman said.
He did not give further details on the exact timing or extent of the proposed deals, but said the government had held around 28 meetings and document exchanges in a bid to reach an agreement.
Interim leader Muhammed Yunus spoke to US Secretary of State Marco Rubio on Monday and told him Dhaka was 'working with your officials to finalise a package of measures to effectively respond to President Trump's trade agenda'.
Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the national platform of the garment makers, expressed concerns about any deal.
'The already enacted additional 10 percent tariff is hitting our exporters, and if it goes further, we might lose US buyers,' he warned.
But Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told AFP he was optimistic.
'We are hopeful of a positive outcome on the US tariff before July 9,' he said.
'There will be a temporary problem if the US administration does not revise the tariff. But it will largely and ultimately hit the US buyers, as they would have to buy goods at higher prices.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
36 minutes ago
- The Sun
US trade deficit widens in May as Trump tariffs fuel uncertainty
WASHINGTON: The US trade deficit widened more than expected in May, government data showed Thursday, with both imports and exports declining as US President Donald Trump's tariffs sent shock waves through the economy and snagged supply chains. The world's biggest economy logged an overall trade gap of $71.5 billion, in the month after Trump imposed a 10 percent duty on most trading partners before pausing steeper rates for dozens of these economies. This was an expansion from the $60.3 billion deficit in April, according to Commerce Department data. The figures, however, came as both imports and exports shrank in May. US imports were down 0.1 percent to $350.5 billion, as incoming shipments of goods ticked down. Imports of consumer goods dropped by $4.0 billion, with those of apparel and toys both sliding, although imports of autos and parts climbed. US exports, meanwhile, dropped by 4.0 percent to $279.0 billion, with declines largely seen in industrial supplies and materials, the report showed. While Trump pulled back on some of his harshest tariff measures in April, he doubled down on levies impacting goods from China. Tit-for-tat tariffs between Washington and Beijing surged to triple-digits around the time, a level described as a trade embargo as businesses halted shipments to wait for both governments to ease tensions. This could have dented imports of certain consumer goods before United States and Chinese officials eventually came to a pact in mid-May to temporarily lower these tariffs. – AFP
The Sun
37 minutes ago
- The Sun
France fines Shein 40 mn euros over ‘deceptive' sales practices
PARIS: France announced Thursday a record 40 million-euro fine against e-commerce giant Shein over 'deceptive commercial practices' after a competition inquiry, saying it misled customers on price deals and on its environmental impact. The French competition and anti-fraud office said the investigation found Shein used 'deceptive commercial practices towards consumers regarding... price reductions', with the fine handed down with the blessing of the Paris prosecutor's office. The DGCCRF competition office said the nearly year-long probe found that the firm raised certain prices before lowering them. It added that the China-founded retailer had accepted the fine. 'These practices of greatly discounted prices and permanent promotions give consumers the impression they're getting a great deal,' said the DGCCRF. If found that 11 percent of advertised discounts it checked 'were actually price increases'. In 57 percent of cases Shein's advertised promotions actually offered 'no price reduction' and in 19 percent of cases the price drop 'less significant than announced'. Launched in France in 2015, Shein has seen phenomenal growth in recent years and took its share in the domestic clothing and footwear last year to three percent from two in 2021 -- a significant slice in what is a notably fragmented market. The company, which has become a figurehead for the downside of 'ultrafast fashion,' is decried in some quarters for causing environmental pollution as well as indulging in unfair competition and allowing poor working conditions. In a statement to AFP, Shein said it had put into action 'without delay' necessary corrective action inside two months on learning of the DGCCRF probe against in March of last year. It added it took its legal and regulatory obligations in France 'very seriously'and was committed to transparency. – AFP
The Star
an hour ago
- The Star
Indonesia says it will sign US$34bil pact with US partners ahead of tariff talks deadline
Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto said the MoU is due to be signed on July 7, 2025. - Photo: Reuters JAKARTA: Indonesia will sign a pact worth US$34 billion with business partners next week to boost purchases from the United States, as part of efforts to strike a trade deal with Washington ahead of the July 9 deadline, Indonesia's chief economic minister said on Thursday (July 3). The deal would include increasing imports of fuels and investment by Indonesian companies in energy and agriculture sectors in the United States. Separately, flag carrier Garuda Indonesia also said it is in talks to buy up to 75 jets from Boeing. Jakarta is facing a 32% tariff in US markets and has previously offered to increase US imports to facilitate trade talks between the two sides. Indonesia enjoyed a goods trade surplus of $17.9 billion with the United States in 2024, according to the U.S. Trade Representative. Speaking to journalists, Minister Airlangga Hartarto said the memorandum of understanding due to be signed on July 7 will deploy the $34 billion for new Indonesian investments and purchases in the United States. "This shows that government, regulators, state-owned enterprises and the private sector are together in responding to the imposition of US reciprocal tariffs," Airlangga said. He said that by addressing the trade balance with the United States, Indonesia hoped to get a better trade deal than the one struck with Vietnam. The United States announced on Wednesday that it will place a lower-than-promised 20% tariff on many Vietnamese exports, down from the original 46% announced by President Donald Trump in April. Meanwhile, Garuda's potential jet purchase may include 737 Max 8 and 787 jets, its chief executive Wamildan Tsani told reporters after meeting Airlangga. It was unclear whether Garuda's discussion with Boeing is part of the tariff negotiations. The airline is struggling to recover from the impact of the pandemic. It secured a $405 million loan from sovereign wealth fund Danantara Indonesia in June for maintenance, repair and overhaul of its fleet. - Reuters
