New Delhi:Bangladesh on Friday mocked at India saying it got a better deal in Donald Trump’s tariff regime compared to India. In a nearly taunting and undiplomatic statement the interim government said India failed to reach a comprehensive agreement with the US while the Bangladeshi negotiators sat through since February to secure a “landmark trade deal” with the United States, for a “a decisive diplomatic victory.”Bangladesh, Pakistan were among 50 countries having newly imposed US tarrif lower than India. Bangladesh was given a 20 per cent tariff rate, from the previously declared 37% after hectic negotiations. The Yunus regime is happy that it is lower compared to its key apparel-sector competitors such as Sri Lanka, Vietnam, Pakistan, and Indonesia, which received rates between 19% and 20%.“As a result, Bangladesh’s relative competitiveness in apparel exports remains unaffected. By contrast, India received a 25% tariff after failing to reach a comprehensive agreement with the United States. We negotiated carefully to ensure that our commitments aligned with our national interests and capacity,” said Dr. Khalilur Rahman, Bangladesh’s National Security Advisor and lead negotiator.However, Dhaka did not mention the price it is paying for this deal: A commitment to buy 25 Boeing aircraft worth $6 billion without assessing exact demand and economic viability; commitment to buy wheat, cotton, soybean, pulses and other agricultural products of about $3 billion both through government and private channels to address trade deficit instead of buying at cheaper rate from countries like India and Brazil. Bangladesh at present imports 58.4% of all its soybean from Brazil followed by the US 36.8%. It will also buy and Liquefied Natural Gas from the US to soften punitive tariff. And, a Non Disclosure Agreement (NDA) with the US that prevents Bangladesh from procuring critical military equipments from countries like China.On April 2, citing trade deficit concerns US President Donald Trump had announced higher tariffs on several countries, and at that time, Bangladesh was subject to 37%. However, on July 8, Trump wrote to Bangladesh’s interim government chief adviser Professor Muhammad Yunus informing him that tariff for Bangladesh had been cut down to 35% from 37%. Dhaka was given time until July 31 to reach trade agreements with the US to lower the tariff rates.Bangladesh interim government said as part of the negotiations, countries were required to make explicit commitments to purchase US goods to help narrow trade deficits. “Tariff relief was tied not only to reductions in duties on US exports but also to a country’s willingness to address US concerns on non-tariff barriers, trade imbalances, and security matters,” Mr Rahman said.“By reducing the tariff to 20%, 17 points lower than anticipated, our negotiators have demonstrated remarkable strategic skill and unwavering commitment to safeguarding and advancing Bangladesh’s economic interests,” Bangladesh Chief Adviser Professor Muhammad Yunus said.However, experts feel otherwise. “Bangladesh got the worst negotiated tariff from the US after agreeing to purchase 25 Boeing aircraft worth billions and buying US wheat at the second-highest global price, Bangladesh ended up with the worst negotiated reciprocal adjusted tariff, 20%. Out of 68 countries, even Pakistan (19%) and Venezuela (15%) secured better terms. As expected, the Yunus camp will start selling this worst outcome as a win, like most losers do. It’s a textbook case of selling snake oil,” wrote Mr ABM Nasir, Professor, Economics, School of Business, North Carolina Central University on X.Bangladesh media house Prothom Alo quoted a business leader saying the US wants to deepen its geopolitical and strategic involvement with Bangladesh, primarily to ensure that Bangladesh does not tilt too far toward China.“Washington wants Dhaka to avoid significantly expanding trade relations with China or encouraging Chinese investment. Sources confirm that among the conditions being discussed are clauses requiring Bangladesh to comply with any sanctions imposed by the US. This means Bangladesh will have to refrain from trade, business, or investment activities with countries sanctioned by the US. Furthermore, there is a condition that goods granted duty-free access to Bangladesh from the US should not be offered similar benefits to any other country,” Prothom Alo said.“Buying planes purely for diplomatic reasons without considering passenger flow or route viability could become a financial burden for the national carrier,” said ATM Nazrul Islam, a retired Wing Commander and aviation analyst was quoted in Bangladesh media criticising hasty decision of purchase.
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