Bangladesh seeks tariff relief through purchase of 25 Boeing aircraft from the US

To secure relief from the 35 percent tariff imposed by the US on Bangladeshi products, Bangladesh has ordered 25 Boeing aircraft, according to Commerce Secretary Mahbubur Rahman. 

Speaking to reporters at his office in the Secretariat on Sunday, he clarified that Boeing, not the US government, handles these transactions. 

Other countries, including India and Vietnam (100 aircraft each) and Indonesia (50 aircraft), have also placed orders.

Deliveries will be based on Boeing’s production capacity and order priority. 

Bangladesh, aiming to expand Biman Bangladesh Airlines’ fleet, may receive some aircraft within one to two years, building on a prior order of 14 Boeings.

Mahbubur noted that negotiations on the reciprocal tariff agreement have progressed through multiple phases, including two rounds of talks in Washington, online meetings, and inter-ministerial discussions. 

Bangladesh conveyed its final position to the US on July 23 after reviewing draft agreements. 

A delegation, including the Commerce Adviser, Security Adviser, and Commerce Secretary, will meet with the US Trade Representative (USTR) in Washington on Tuesday and Wednesday, with a possible additional meeting on Thursday (July 31). 

The tariff issue may be finalised by August 1.

Additionally, Bangladesh has agreed to import 220,000 tonnes of wheat from the US at a slightly higher price, as approved by the Advisory Committee on Government Procurement. 

Private sector traders are exploring soybean imports, with discussions planned alongside the USTR meetings. 

Cotton imports from the US, already significant but recently reduced, are nearly finalised. 

These steps aim to increase imports from the US, aligning with efforts to reduce the US’s global trade deficit of $1.3 trillion.

Commerce secretary stressed that wheat imports, totalling 9 million tonnes annually from public and private sectors, have traditionally come from multiple sources, including Russia and Ukraine. 

However, supply chain disruptions in the Red Sea have increased reliance on the US and Canada, he mentioned.

He urged private sector cooperation to boost US imports to support tariff negotiations, noting that the US purchases $8.5 billion in goods from Bangladesh.

On aircraft, Mahbubur stressed that Biman’s fleet relies heavily on Boeing, though purchases from Airbus or others remain possible. Imports from the US, including wheat and cotton, offer advantages without government pressure on traders, and market impacts are expected to be minimal, he added.

Addressing broader implications, commerce secretary suggested that US tariffs pressure China more than others, potentially shifting production to countries like Bangladesh. 

He expressed confidence that Bangladesh would secure tariff benefits comparable to those of competitors like Vietnam and India, without straining relations with other trading partners like China.