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Bangladesh-USA Bilateral Trade:
The Way Forward
Bilateral Trade Relation
History of Bangladesh-USA Bilateral Relations
 Bangladesh-USA relations date back to the 1970s when
the USA recognized Bangladesh as a sovereign state on
4th April, 1972.
 US assistance began to flow for the rehabilitation of
Bangladesh and the first direct assistance from the USA
totalled $ 122.2 million in 1972.
Bilateral Trade between Bangladesh and USA
 USA is the most important & single largest trading partner
of Bangladesh with about a quarter of its exports being
destined for USA
 Bangladesh was the 57th largest trading partner of USA in
2011
 Bangladesh was also the 78th largest importer and 46th
largest exporter of USA in 2011
 Recently Bangladesh has been graduated to 2nd largest
apparel exporter to USA market
Bilateral Trade between Bangladesh and USA,
Cont…
Year Export Import Trade Ratio
2005-06 204303.02
(3039.77)
23162.9
(345.30)
1:0.11
2006-07 238500.2
(3453.52)
26304
(381.05)
1:0.11
2007-08 246312.48
(3590.56)
33627.7
(490.19)
1:0.14
2008-09 278777.81
(4052.00)
31723.1
(461.09)
1:0.11
2009-10 273293.37
(3950.47)
32479
(469.48)
1:0.12
2010-11 363502.48
(5107.52)
48403.5
(680.11)
1:0.13
2011-12
(July-March)
291706
(3755.228)
44142
(568.2)
1:0.15
Major Export Items of Bangladesh to USA
No. Products Export Mn. US$
2010-11
% of total export
to US
1. Woven Garments 3506 68.6
2. Knitwear 1119 21.8
3. Home Textile 197 3.85
4. Frozen Food 88 1.8
5. Cap 42 0.82
These five products contribute to 96.8 percent of total
export to USA from Bangladesh.
FDI of USA in Bangladesh
Year FDI in million
US$
2005-06 46.29
2006-07 17.89
2007-08 39.55
2008-09 15.35
2009-10 143.63
2010-11 846.71
2011-12
(Upto April-12)
15.09
US GSP Facilities
 US GSP facilities will be continued up to July 31, 2013
 Only about 71 percent of US GSP facilities were utilized for Bangladesh’s
export in 2010
 This GSP covered less than 1 percent of Bangladesh’s total export to USA
 GSP preferences are available for about one third (3,400 products) of all
products (more than 10,500) imported into the United States. GSP
eligible products are mostly manufactures and semi-manufactures
notably, consumer electronics and machinery and parts but also selected
agricultural and primary industrial products.
 The main export item of Bangladesh is RMG which is not included in US
GSP list.
Bangladesh needs support from US
 Bangladesh is not head to head competitor of USA. It is true that if the
competitiveness of Bangladesh is reduced/lost in the textile and
apparel sector, the other Asian countries will capture the US market
rather than the local products of USA or its FTA partner.
 Even though the US GSP program cover many products and thus
benefits many developing countries, it unfortunately does not help
Bangladesh much as it mostly exports apparel items in USA and
apparel, being in the sensitive list is not covered under GSP program.
As a result, exported apparel from Bangladesh, like other exporting
countries such as China, face a stiff tariff penalty in USA ranging from
0% to as high as 32%. So, RMG must be included in the US GSP
program.
 US based brands and importers can avail of low cost but quality
apparels from Bangladesh.
 Grant DFQF market access for all Bangladeshi products to USA.
 If DFQF treatment is granted to Bangladesh, it will create new
opportunities for Bangladesh and US exporters will be able to export
more accessories, agricultural products and equipments. It will foster
the economic growth of Bangladesh and benefit of the US
consumers. Moreover, apparel is one of the important items for the
US consumers.
 Creation of any sub-category or grouping among the LDCs by USA will
affect Bangladesh most and put a threat to our RMG industry.
Development initiatives of the LDCs to attain MDGs should be equally
supported by USA.
 Bangladesh is one of the most vulnerable countries in the world although
it does not contribute to global warming. So, USA should assist
Bangladesh economically and politically in all the international
fora for climate change mitigation and adaptation and
establish/transfer of green technology.
Bangladesh needs support from US, Cont…
 The current negotiation on TICFA should be conducted in such a way
so that both the countries are equally benefited and TICFA provides a
forum to look into each other trade issues in win-win position.
 The TICFA issue should also be discussed with the private sector in
order to have it more transparent and business friendly.
Bangladesh needs support from US, Cont…
THANK YOU

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Usa bangladesh trade relation and prospects

  • 3. History of Bangladesh-USA Bilateral Relations  Bangladesh-USA relations date back to the 1970s when the USA recognized Bangladesh as a sovereign state on 4th April, 1972.  US assistance began to flow for the rehabilitation of Bangladesh and the first direct assistance from the USA totalled $ 122.2 million in 1972.
  • 4. Bilateral Trade between Bangladesh and USA  USA is the most important & single largest trading partner of Bangladesh with about a quarter of its exports being destined for USA  Bangladesh was the 57th largest trading partner of USA in 2011  Bangladesh was also the 78th largest importer and 46th largest exporter of USA in 2011  Recently Bangladesh has been graduated to 2nd largest apparel exporter to USA market
  • 5. Bilateral Trade between Bangladesh and USA, Cont… Year Export Import Trade Ratio 2005-06 204303.02 (3039.77) 23162.9 (345.30) 1:0.11 2006-07 238500.2 (3453.52) 26304 (381.05) 1:0.11 2007-08 246312.48 (3590.56) 33627.7 (490.19) 1:0.14 2008-09 278777.81 (4052.00) 31723.1 (461.09) 1:0.11 2009-10 273293.37 (3950.47) 32479 (469.48) 1:0.12 2010-11 363502.48 (5107.52) 48403.5 (680.11) 1:0.13 2011-12 (July-March) 291706 (3755.228) 44142 (568.2) 1:0.15
  • 6. Major Export Items of Bangladesh to USA No. Products Export Mn. US$ 2010-11 % of total export to US 1. Woven Garments 3506 68.6 2. Knitwear 1119 21.8 3. Home Textile 197 3.85 4. Frozen Food 88 1.8 5. Cap 42 0.82 These five products contribute to 96.8 percent of total export to USA from Bangladesh.
  • 7. FDI of USA in Bangladesh Year FDI in million US$ 2005-06 46.29 2006-07 17.89 2007-08 39.55 2008-09 15.35 2009-10 143.63 2010-11 846.71 2011-12 (Upto April-12) 15.09
  • 8. US GSP Facilities  US GSP facilities will be continued up to July 31, 2013  Only about 71 percent of US GSP facilities were utilized for Bangladesh’s export in 2010  This GSP covered less than 1 percent of Bangladesh’s total export to USA  GSP preferences are available for about one third (3,400 products) of all products (more than 10,500) imported into the United States. GSP eligible products are mostly manufactures and semi-manufactures notably, consumer electronics and machinery and parts but also selected agricultural and primary industrial products.  The main export item of Bangladesh is RMG which is not included in US GSP list.
  • 9. Bangladesh needs support from US  Bangladesh is not head to head competitor of USA. It is true that if the competitiveness of Bangladesh is reduced/lost in the textile and apparel sector, the other Asian countries will capture the US market rather than the local products of USA or its FTA partner.  Even though the US GSP program cover many products and thus benefits many developing countries, it unfortunately does not help Bangladesh much as it mostly exports apparel items in USA and apparel, being in the sensitive list is not covered under GSP program. As a result, exported apparel from Bangladesh, like other exporting countries such as China, face a stiff tariff penalty in USA ranging from 0% to as high as 32%. So, RMG must be included in the US GSP program.  US based brands and importers can avail of low cost but quality apparels from Bangladesh.
  • 10.  Grant DFQF market access for all Bangladeshi products to USA.  If DFQF treatment is granted to Bangladesh, it will create new opportunities for Bangladesh and US exporters will be able to export more accessories, agricultural products and equipments. It will foster the economic growth of Bangladesh and benefit of the US consumers. Moreover, apparel is one of the important items for the US consumers.  Creation of any sub-category or grouping among the LDCs by USA will affect Bangladesh most and put a threat to our RMG industry. Development initiatives of the LDCs to attain MDGs should be equally supported by USA.  Bangladesh is one of the most vulnerable countries in the world although it does not contribute to global warming. So, USA should assist Bangladesh economically and politically in all the international fora for climate change mitigation and adaptation and establish/transfer of green technology. Bangladesh needs support from US, Cont…
  • 11.  The current negotiation on TICFA should be conducted in such a way so that both the countries are equally benefited and TICFA provides a forum to look into each other trade issues in win-win position.  The TICFA issue should also be discussed with the private sector in order to have it more transparent and business friendly. Bangladesh needs support from US, Cont…