SOHEL PARVEZ

High tariffs, investment hurdles and entrenched corruption continue to undermine American businesses operating in Bangladesh, according to the latest report by the Office of the United States Trade Representative (USTR).

The 2025 report on foreign trade barriers, released last month, also raised concerns about Bangladesh’s data localisation efforts and restrictive digital laws, warning that such policies could stifle cross-border digital trade.

The annual report, which highlights significant foreign barriers to US exports, foreign direct investment, and e-commerce, was published shortly before the Trump administration imposed new tariffs on imports from 60 countries, including Bangladesh, in an effort to reduce the US trade deficit.

Bangladeshi goods entering the US market are now subject to a 37 percent tariff, a development that has raised alarm among garment and other exporters, as the US remains Bangladesh’s largest export destination.

In 2024, US exports to Bangladesh were valued at $2.2 billion, while imports from Bangladesh stood at $8.3 billion -- showing a trade relationship that strongly favours Dhaka.

The report said that Bangladesh’s Most-Favoured-Nation (MFN) average tariff rate stood at 14.1 percent in 2023. The average applied tariff was 17.7 percent for agricultural products and 13.5 percent for non-agricultural goods.

Besides, only 17.6 percent of Bangladesh’s tariff lines are bound under World Trade Organization (WTO) commitments, with an average bound rate of 155.1 percent.

Apart from this, the USTR flagged non-tariff barriers related to customs procedures and trade facilitation.

Although Bangladesh ratified the WTO’s Trade Facilitation Agreement in 2016, it has yet to submit key transparency notifications on import, export, and transit regulations, which were due by 31 December 2023.