Experts urge review of Bangladesh-US tariff deal, cite risks to economy

Business leaders and economists have raised concerns over the tariff-related trade agreement between Bangladesh and the United States, warning that it may create more challenges than benefits and calling on the new government to reassess the deal through broad stakeholder consultations.

The concerns were voiced at a seminar organised by the Bangladesh Chamber of Commerce (BCI) in Dhaka today (17 February).

Dr Mostafa Abid Khan, former member of the Bangladesh Trade and Tariff Commission, said that while the US used comparatively flexible language in agreements with countries such as Cambodia and Malaysia, stricter conditions were applied in Bangladesh’s case. He noted that implementing the agreement would require amendments to existing laws, meaning it has not yet come into force.

“This is the kind of agreement that is difficult to exit once entered,” he said, advising the government to take a collective initiative to review and revise the provisions.

Joining the discussion online, Dr MA Razzaque, chairman of research organisation RAPID, questioned whether the deal would actually boost Bangladesh’s exports. Instead, he warned that commitments to purchase products such as agricultural goods, energy, aircraft and arms could have negative economic consequences.

He added that since the agreement may conflict with global trade norms, other partners could demand similar concessions. “Why would the European Union continue to grant Bangladesh preferential treatment?” he asked, urging the government to reassess whether revisions are possible. He also cautioned that the deal could put Bangladesh’s national interests at risk.

BCI President Anwar-Ul-Alam Chowdhury Parvez said expectations of a major surge in ready-made garment exports were unrealistic; even if exports increase, the gains would likely be modest. In contrast, Bangladesh has already offered duty-free access to a large number of US products, raising questions about the overall balance of benefits.

He also expressed concern that the agreement could complicate trade and investment relations with countries such as China and Russia, while certain labour-related provisions in export processing zones might discourage foreign investment.

Dr Fahmida Khatun, executive director of CPD, said the interim government had acted beyond its mandate in concluding the deal. She argued that the agreement extends beyond trade to include geopolitical considerations and broader political-economic arrangements. According to her, public interest was not adequately considered, and stakeholders were not consulted before the agreement was finalised.

Negotiations between the two countries had earlier focused on easing tariffs imposed on Bangladeshi exports, with officials indicating that most issues were resolved during the final rounds of talks.