New Delhi, March 13: The United States has announced the initiation of an investigation into trade practices involving 16 countries, including Bangladesh, India, and China. According to a report from Dhaka’s ‘The Morning Star,’ the U.S. aims to determine whether Bangladesh’s policies and production methods could negatively impact American manufacturing.
The Office of the United States Trade Representative (USTR) commenced this investigation under the Trade Act of 1974 on Wednesday. This powerful trade enforcement tool is employed by the U.S. to challenge unfair foreign practices.
The USTR report indicates that there is evidence of structural excess capacity and production in Bangladesh, which has resulted in a trade surplus of approximately $6.5 million with the U.S. This surplus primarily arises from exports in the textile sector, where the government provides cash incentives to boost exports across 43 areas, including domestic textiles and leather products.
Despite facing the worst downturn in years, Bangladesh’s cement industry still shows significant excess capacity. National cement consumption in Bangladesh fell to 38 million tons in 2024, representing less than 40% of total capacity, with further declines expected next year.
Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association, expressed concern about the country’s inclusion in the investigation list. The report suggests that the issues under scrutiny—such as production capacity, intellectual property rights, and incentives—are not expected to have a major impact on Bangladesh.
Additionally, the report highlights that Bangladesh’s production is largely dependent on work orders from international buyers, making excessive production unlikely.
Furthermore, Bangladesh has amended its labor laws in line with recommendations from the International Labour Organization (ILO) over the past year and has ratified three significant ILO conventions.
According to the report, the government has also begun phasing out export incentives in preparation for exiting the least developed country (LDC) category by November this year.
–
My name is Narendra Jijhontiya. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
Leave a Comment