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production capacity in several sectors, particularly the garment industry.

He said Bangladesh does not have overproduction in the apparel sector. He explained that exporters ship garments to the US only against confirmed work orders from American retailers and brands, and do not export surplus products.

Rahman also said Bangladesh’s export subsidies comply with World Trade Organization rules, which allow member countries to provide incentives to boost exports and improve global competitiveness.

He added that Bangladesh has reduced net export subsidy payments as it prepares to graduate from the Least Developed Country (LDC) group to developing country status in November this year, although it has formally requested a three-year delay of its graduation until November 2029.

The USTR has also said Bangladesh’s cement industry is facing severe overcapacity amid a major downturn. National cement consumption fell to 38 million tonnes in 2024 -- less than 40 percent of total capacity -- and is expected to decline further in 2025.

In 2025, total US goods trade with Bangladesh was estimated at $11.8 billion. US imports from Bangladesh stood at $2.3 billion, up 1.4 percent or $32.6 million from 2024. US exports to Bangladesh reached $9.5 billion, up 13.3 percent or $1.1 billion.

As a result, the US trade deficit with Bangladesh widened to $7.1 billion in 2025, an increase of 17.9 percent ($1.1 billion) from 2024, according to USTR data. Garments remained Bangladesh’s main export to the US, accounting for 86 percent of total shipments.

LABOUR LAW AMENDMENTS AND UPCOMING CONSULTATIONS

The USTR has also raised questions about Bangladesh’s labour law amendments. Rahman said the interim government amended the labour law through an ordinance last year, making it easier to form trade unions at the factory level.

He added that the newly elected BNP-led government also approved the amended labour law in Parliament last week.

Rahman further said Bangladesh does not have child labour in any formal sector.

Ahead of the hearing, the commerce ministry will hold consultation meetings with stakeholders on April 20 or 21 to gather their views, he added.