The United States may announce a reduction in the reciprocal tariffs imposed on Bangladesh by the end of this week or early next week, Chief Adviser’s Special Envoy on International Affairs Lutfey Siddiqi said today.
Speaking at a press conference at the Foreign Service Academy, where he briefed the media on Bangladesh’s engagements and outcomes at the World Economic Forum (WEF) in Davos, Siddiqi said Washington is sincere about lowering tariffs on Bangladesh and an announcement is expected soon.
He, however, said it is still unclear to what extent the current 20 percent tariff will be reduced.
The special envoy said he discussed the issue with US treasury secretary and member of President Donald Trump’s cabinet, Scott Bessent, on the sidelines of the Davos conference.
“Many elements of the US non-tariff policies align with the reform agenda of Bangladesh’s interim government. Besides, the trade deficit of around $6 billion with the US has come down significantly. Considering these factors, the United States is showing sincerity in reducing trade barriers on Bangladesh. A better decision will come soon,” he said.
On Bangladesh-EU trade relations, Siddiqi said discussions were held with EU Commissioners Roxana Mînzatu and Jozef Síkela on a possible free trade agreement (FTA). “We have clearly conveyed that Bangladesh wants an FTA with the EU, and they have shown interest. But their process is slow.”
He said the EU is currently pursuing FTAs with India and may move towards Vietnam next, which could pose challenges for Bangladesh. “Still, there is no reason to panic. We must continue discussions. I will leave detailed notes on this for the next government.”
Siddiqi also pointed out that securing GSP Plus facilities in the EU market after Bangladesh’s graduation from LDC status will be challenging, and warned that excessive export concentration on a single product could risk losing GSP Plus benefits, noting that Bangladesh’s garment exports heavily dominate the EU market, which could create future vulnerabilities.
Referring to talks with World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala, Siddiqi said future trade policy issues were discussed, where the WTO chief advised Bangladesh to gradually move beyond multilateral trade reliance and focus more on bilateral trade agreements.
In this context, the special envoy to the chief adviser said productive discussions were held with Japan on an economic partnership agreement (EPA).
Japanese Minister of Economy, Trade and Industry Akazawa Ryosei informed him that a formal agreement with Bangladesh could be signed within the next one or two weeks.
Bangladesh will also enjoy duty-free transit facilities in Japan for three years after LDC graduation, he said.
“Talks on FTAs are ongoing with South Korea, while negotiations with Singapore are almost at the final stage. In the future global trade environment, surviving without FTAs or EPAs will be difficult,” Lutfey said.
He said discussions with Thai Foreign Minister Sihasak Phuangketkewo covered potential Thai investment in Bangladesh’s food processing sector and the use of Thai ports to boost bilateral trade.
On the Rohingya repatriation issue, Siddiqi said the matter was discussed with UN Special Envoy on Myanmar Julie Bishop in Davos. “As days pass, global geopolitics surrounding Myanmar is becoming more complicated. Bangladesh must remain focused on its rightful demands.”
Highlighting talks with IOM Director General Amy Pope, the special envoy said discussions focused on legal migration from Bangladesh.
“There is a perception internationally that Bangladesh is not serious about illegal migration and is content as long as people go abroad. We are trying to change that perception.”
He mentioned that 600 holders of fake passports were sent back from Singapore last month. “Previously, no action was taken against them. This time, with support from the CID, each individual will be brought under the law.”
Stressing the need for changing Bangladesh’s diplomatic approach, Siddiqi said symbolic gestures such as signing MoUs, handshakes, and photo opportunities are no longer sufficient; Bangladesh must make itself more relevant globally.
Corridor diplomacy and issue-based negotiations must be prioritised to clearly present Bangladesh’s positions to the world, he said.