Business leaders call for open discussion and transparency to gain from US tariff deal

Business leaders say full transparency and open discussion are needed on Bangladesh's reciprocal trade agreement (ART) with the United States. In their view, the opportunities in the deal, the risks it carries and its impact on the national economy must be clearly understood, or it will be difficult to gain from it.

The speakers made the remarks at a seminar held on Saturday at the InterContinental hotel in the capital. The seminar, titled 'New Possibilities and Challenges of Bangladesh–US Trade', was organised on the final day of the three-day US Trade Show by the American Chamber of Commerce in Bangladesh (AmCham) and the US Embassy in Dhaka.

Syed Nasim Manzur, president of the Footwear Leathergoods and Accessories Exporters Association (FLAIA) and managing director of Apex Footwear, told the seminar that Bangladesh itself will have to manage the agreement with the United States and its consequences. Discussion is therefore essential on what the deal contains and how it can be used in the country's interest, he said.

Manzur said the agreement could become a major driver of Bangladesh's growth. But that will require preparation for the extra cost of ensuring compliance and traceability in the product supply chain. He also advised a careful analysis of the US tariff structure.

Fahmida Khatun, a distinguished fellow of the Centre for Policy Dialogue (CPD), said at the seminar that to benefit from the US tariff agreement, businesses must ensure compliance while also raising skills and productivity. Those capabilities will also be needed to face the challenges that follow graduation from least-developed-country status, she said.

Shams Mahmud, managing director of Shasha Denims, said that although nearly a year has passed since the agreement was signed, the ministries concerned have not held enough discussion with exporters on the process of using its benefits. He added, however, that new American buyers are coming to Bangladesh because of the agreement, creating fresh opportunities for exporters.

Ali Arsalan, country representative of Cotton USA, told the seminar that the US 'Great American Cotton Plan' mentions tariff relief based on the use of American cotton in garments made in Bangladesh. But how that arrangement will work in practice is still unclear, he said.