A leading think tank, Business Initiative Leading Development (BUILD), excels in supporting the private sector to safeguard the country’s economic interests against the recent imposition of reciprocal tariffs by the United States, which has sparked serious concerns among the private sector.
BUILD emphasises the critical need for a strategic review of the decision and swift diplomatic engagement to mitigate adverse effects on trade, investment, and employment. It also warns of prolonged trade barriers, which could deter foreign direct investment (FDI), stifling job creation and long-term economic growth.
Bangladesh has undertaken extensive policy-related reforms to overcome prolonged systemic problems, stabilise the macroeconomy, increase foreign trade, and boost the manufacturing sector by modifying monetary and fiscal policy, diversifying exports, enhancing financial sector stability, and strengthening the climate for private investment. Bangladesh is also working on trade facilitation, simplifying the NOC and registration process for investment in restricted sectors, reforms in the digital law, etc. However, at this moment, such reciprocal tariff imposition hinders the economy and jeopardises the investment environment.
Private sector entrepreneurs have already been receiving requests to postpone work orders in the RMG, leather, and other sectors, fearing significant impacts on their investment. “The US tariff matter indicates that the reforms process should be expedited and various pending reforms for trade facilitation should be accelerated,” stated Abul Kasem Khan, Chairperson of BUILD. “Immediate dialogue and remedial measures are essential to protect jobs and economic stability,” he added.
BUILD also emphasises conducting a comprehensive review of tariff implications involving the government, private sector stakeholders, and trade experts. Additionally, it proposes advocacy under the World Trade Organisation (WTO) Trade Facilitation Agreement (TFA) to strengthen Bangladesh’s negotiating position despite the US administration’s historical reluctance to adhere to WTO norms. Given this, the government could soon form a Special Committee comprising members and experts from the public and private sectors.
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