Kazi Zahidul Hasan :
High tariff levied by the US authorities while importing Bangladeshi goods is holding back a smooth trade and economic cooperation between Dhaka and Washington although both sides are putting their best efforts on enhancing bilateral trade, observed business leaders on Monday.
They said, Bangladesh’s export to the US market is facing setback due to the high tariff burden and such a tariff barrier has created a road block on the trade and investment promotion of both the countries.
“High import tariff is hindering our export growth to the US market. The tariff, which the US is charging on Bangladeshi goods, is the second highest among the countries from where they used to import,” Abdus Salam Murshedy, President of the Exporters Association of Bangladesh (EAB) told The New Nation on Monday.
He noted Bangladeshi products are paying an average duty of 15.62 per cent while entering the US market whereas the US government is charging a lower import duty from other goods importing nations.
For example, he said, the US authorities have slapped an average 8.38 per cent import duty while importing goods from Vietnam, 6.30 per cent from Indonesia, 3.57 from Turkey, 3.57 per cent from China, 2.97 per cent from Philippines, 2.49 per cent from Italy, 2.29 per cent from India, 1.79 per cent from Thailand, 1.77 per cent from Spain, 1.75 per cent from Japan 1.73 per cent from Taiwan, 1.61 per cent from Germany, 1.52 per cent from Hong Kong and 1.28 per cent from Austria.
Bangladesh was the United States 46th largest supplier of goods in 2013 whereas it had to pay a higher import tariff than other major trading partners, he added.
Murshedy also said that the US suspension of GSP (generalised system of preferences) facilities for Bangladesh has also created barriers to the flourishing of bilateral trade between the two countries.
“Although a limited Bangladeshi items were enjoying the GSP facility with negligible export value, the suspension of GSP came as an ‘unfortunate’ development in bilateral relations between the two countries. Such a harsh move of the US government has tarnished our image aboard,” he added.
He however expressed the hope that the US administration would soon restore Bangladesh’s GSP status, a benefit a least developed country is supposed to receive from the developed countries as per the provisions of the World Trade Organisation (WTO). “High import duty is not only hindering our export to the US market but it is also leaving an adverse impact on the two-way trade and economic cooperation, Reaz-Bin- Mahmood, Vice-President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said.
He said, “Our garments export to the US market faced setback due to high tariff barriers. The growth of apparel continued to fall in the recent months taking a heat of such protective measures”.
Referring to an export figure, he said, apparel exports to US market have seen an 8.8 per cent decline in the first two months of current fiscal. The US authorities have already provided preferential or zero duty and GSP facility to many LDC and Sub-Saharan countries. But, it does not showing much interest in giving such facility despite our persuasion in this regard for many years. By this time, it has also scrapped the GSP facility creating a fresh hurdle on the local export sector, Reaz said.
He said when Bangladesh’s apparel exports enjoy duty-free access to the European Union, Canada, Japan and Australian markets, the US authorities remains rigid providing such a facility.
Bangladesh’s apparel items are providing an average 16 per cent duty while entering the US market and this high tariff is liable to raise the prices of apparels in the US domestic market, putting burden to its consumers. The high tariff is also narrowing down our export volume despite having huge potential. Our exports to the US market could be surged once they come forward to grant the duty-free access of local apparels, he mentioned.
He said, Bangladesh has long been deprived of getting the duty-free access to the US market although it deserves to get it from the developed country. Once they come out to extend the facility in favour of Bangladesh, the current impasse in bilateral trade and economic relations could be eased.
