Commerce ministry seeks to launch final round of tariff talks from 26 July; seeks 5–10-year transition period for labour and environmental reforms.

Bangladesh formally submitted its position paper to the Office of the United States Trade Representative (USTR) yesterday, 22 July 2025, requesting that the final round of tariff negotiations commence on or after 26 July. Commerce Secretary Mahbubur Rahman confirmed to the local media that the draft was finalised and would be emailed to the USTR by today.

The third and final round of negotiations will be based on the draft agreement proposed by the United States and Bangladesh’s formal response. If both sides reach consensus, officials are hopeful a bilateral trade agreement will be signed, potentially reducing the 35% reciprocal tariff currently imposed on Bangladeshi exports to the US.

In the position paper, Bangladesh has outlined a broad package of concessions to facilitate progress in the talks. These include commitments to reduce import duties on select US goods and to increase bilateral trade volumes. Among the headline measures, the government has agreed to import 700,000 tonnes of US wheat annually and is in advanced talks to procure 14 Boeing aircraft.

The document also outlines Bangladesh’s stance on non-trade issues—specifically labour and environmental standards. The country is requesting a transitional period of five to 10 years to implement related reforms.

The urgency of the negotiations is underscored by the approaching deadline: the Trump administration is scheduled to implement new reciprocal tariffs from 1 August unless the pause on the updated schedule is extended. Bangladeshi officials are working to conclude the talks before that date.

The stakes are particularly high for the country’s apparel sector. According to data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), 1,322 member factories export to the United States. Of these, 100 rely on the US for more than 90% of their exports. Another 46 factories ship between 81% and 90% of their goods to the US, while the remaining businesses have varying degrees of exposure to the American market.

A failure to reduce the current 35% tariff could deal a serious blow to these exporters, especially as they compete with countries like Vietnam, which already enjoys more favourable access to the US market. Bangladesh is seeking either zero-duty access or a tariff rate lower than Vietnam’s in order to remain competitive.