Bangladesh, US Engage in Free Trade Agreement Talks
The United States has agreed in principle to a bilateral free trade agreement (FTA) with Bangladesh, according to one of the country's top officials.
A meeting between the Bangladeshi government and U.S. Trade Representative (USTR) Ambassador Jamieson Greer last month spurred discussions about rebalancing trade and lowering trade barriers between the two nations. Bangladeshi Commerce Secretary Mahbubur Rahman confirmed this week that the U.S. has agreed to negotiate a new deal, per a report in the country's daily newspaper, The Business Standard.
More from Sourcing Journal
India Ends Land Port Entry for Bangladeshi Garment Imports
USTR Says 'Unfair' Trade Practices Are Undermining U.S. Apparel and Textiles
How Pioneer Denim Is Growing Smart, Not Fast
Rahman said Bangladesh has previously proposed the development of a FTA to the U.S., but 'This time, they have agreed, and we are now actively preparing to commence negotiations.'
Calling the step a 'major breakthrough for Bangladesh,' Rahman indicated that the agreement would likely grant Bangladesh duty-free access to the U.S. market—a pivotal development for the country's ready-made garment (RMG) industry, which is responsible for more than 80 percent of the country's total exports. The U.S. is the country's largest export market, taking in more than 17 percent of total exports and 18 percent of its garment exports, according to Commerce Ministry data.
As it stands, the U.S. charges an average duty rate of 15 percent on imports from Bangladesh, while the average tariff on American imports entering Bangladesh sits at 6.1 percent.
The Ministry established an eight-member committee on May 12 'to swiftly prepare a draft text of the agreement,' Rahman said. The committee was given 15 days to turn over a preliminary text for the FTA.
Reports from several Bangladeshi news sources say that the country is prepared to offer the U.S. generous terms—a total zeroing out of duties on hundreds of U.S.-made products, to be exact—in order to placate President Donald Trump, who levied 37-percent tariffs on Bangladesh on April 2. Following the 'Liberation Day' tariff announcements, the president deferred the duties for a period of three months to allow for negotiations with trade partners.
More recently, Trump has said that his cabinet—including Greer, as well as Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent—would be revising tariff rates for impacted countries rather than meeting with each one directly, seemingly indicating that the high double-digit duties many are facing come July 9 could be reduced.
But in order to secure the most favorable terms for Bangladesh, Chief Advisor Muhammad Yunus's interim government was given provisional approval to reduce import duties in the upcoming budget during a Monday meeting with the National Board of Revenue (NBR), according to news portal BDnews24.com.
Members of the RMG sector in Bangladesh have been antsy about what will happen when the reciprocal duties resume. While the USTR is actively engaging with trade partners to hash out new terms for trade policies, the nation's foremost trade authority has also pulled no punches when it comes to attacking other nations over business practices and labor rights issues.
Earlier this month, the agency posted on X to '[call] out the unfair trade practices undercutting the American textiles and apparel sector,' including, in the case of Bangladesh, 'pervasive' problems related to labor violations and wages, shift lengths, factory safety and anti-union discrimination.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Elon Musk trades threats with Trump: What it could mean for SpaceX, Starship in Texas
When President Donald Trump took office in January, he began offering plenty of signs that his goals for U.S. spaceflight aligned closely with those of billionaire tech mogul Elon Musk. Now those goals, which included making reaching Mars during Trump's second term a top priority, appear to be up in the air with the increasingly volatile fallout between two of the world's most powerful men. As insults have turned to threats, Trump has suggested he'd hit Musk where it could hurt most: His wallet. Musk's SpaceX has spent years positioning itself at the center of American civil and military spaceflight – a profitable relationship that has made the company's founder incredibly wealthy. In response, Musk has floated – and then retracted – the idea of decommissioning a SpaceX vehicle critical to NASA's spaceflight program. Serious threats, or empty words? That remains to be seen as Musk and Trump reportedly consider a détente. In the meantime, here's what to know about what's at stake if the U.S. government's relationship with SpaceX were to crumble: U.S. spaceflight: Dozens of NASA space missions could be axed under Trump's budget The feud between Trump and his former top adviser escalated in a dramatic fashion when the president threatened to cut off the taxpayer dollars that have fueled Elon Musk's businesses, including SpaceX. "The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts," Trump said in a post on his social media platform. "I was always surprised that Biden didn't do it!" In all, Musk and his businesses have received at least $38 billion in government contracts, loans, subsidies and tax credits, a Washington Post analysis found. With SpaceX as the fulcrum of much of the U.S. government's spaceflight programs, parting ways with the commercial company would leave a void that would be hard to fill. But NASA Press Secretary Bethany Stevens said in a post on social media site X that 'NASA will continue to execute upon the President's vision for the future of space.' 'We will continue to work with our industry partners to ensure the President's objectives in space are met,' Stevens wrote. Elon Musk, the world's richest man, founded SpaceX, in 2002. In July 2024, Musk announced his intentions to move his company, as well as social media platform X's headquarters, from California to Texas. The move was in response to his personal frustrations over a public school policy in California regarding transgender students. Now, the commercial spaceflight company is headquartered at Starbase in South Texas about 180 miles south of Corpus Christi. The site, which is where SpaceX has been conducting routine flight tests of its 400-foot megarocket known as Starship, was recently voted by residents to become its own city. SpaceX conducts many of its own rocket launches, most using the Falcon 9 rocket, from both California and Florida. That includes a regular cadence of deliveries of Starlink internet satellites into orbit, and occasional privately-funded commercial crewed missions on the Dragon. The most recent of SpaceX's private human spaceflights, a mission known as Fram2, took place in April. SpaceX was also famously involved in funding and operating the headline-grabbing Polaris Dawn crewed commercial mission in September 2024. SpaceX benefits from billions of dollars in contracts from NASA and the Department of Defense by providing launch services for classified satellites and other payloads. Gwynne Shotwell, CEO of SpaceX, has said the company has about $22 billion in government contracts, according to Reuters. The vast majority of that, about $15 billion, is derived from NASA. SpaceX's famous two-stage Falcon 9 rocket ‒ one of the world's most active ‒ is routinely the rocket of choice to get many NASA missions off the ground. For instance, the rocket is due in the days ahead to help propel a four-person crew of private astronauts to the International Space Station for a venture with NASA known as Axiom Mission 4. NASA also has plans to use SpaceX's Starship in its Artemis lunar missions to ferry astronauts aboard the Orion capsule from orbit to the moon's surface. The rocket, which is in development, has yet to reach orbit in any of its nine flight tests beginning in April 2023. SpaceX's Dragon capsule is also a famous vehicle that is widely used for a variety of spaceflights. The capsule, which sits atop the Falcon 9 for launches to orbit, is capable of transporting both NASA astronauts and cargo to the space station. Under NASA's commercial crew program, the U.S. space agency has been paying SpaceX for years to conduct routine spaceflights to the International Space Station using the company's own launch vehicles. The first of SpaceX's Crew missions ferrying astronauts to the orbital outpost on the Dragon began in 2020, with the tenth and most recent contingent reaching the station in March for about a six-month stay. Standing nearly 27 feet tall and about 13 feet wide, Dragon capsules can carry up to seven astronauts into orbit, though most of SpaceX's Crew missions feature a crew of four. The Dragon spacecraft also was the vehicle NASA selected to bring home the two NASA astronauts who rode the doomed Boeing Starliner capsule to the space station in June 2024. Certifying the Starliner capsule for operation would give NASA a second vehicle in addition to Dragon for regular spaceflights to orbit. Because Boeing is still developing its Starliner capsule, Dragon is the only U.S. vehicle capable of carrying astronauts to and from the space station. It's also one of four vehicles contracted to transport cargo and other supplies to the orbital laboratory. For that reason, Musk's threat Thursday, June 5 to decommission the Dragon "immediately" would be a severe blow to NASA if he were to follow through on it. Musk, though, appears to already be backing off on the suggestion, which he made in response to Trump's own threats. In response to a user who advised Musk to "Cool off and take a step back for a couple days," Musk replied: 'Good advice. Ok, we won't decommission Dragon.' Seven astronauts are aboard the International Space Station, including three Americans. Four of the astronauts rode a SpaceX Dragon to the station for a mission known as Crew-10, while the remaining three launched on a Russian Soyuz spacecraft. Contributing: Joey Garrison, Josh Meyer, USA TODAY; Reuters Eric Lagatta is the Space Connect reporter for the USA TODAY Network. Reach him at elagatta@ This article originally appeared on Corpus Christi Caller Times: SpaceX at center of Trump, Musk feud: What that could mean for Texas
Miami Herald
3 hours ago
- Miami Herald
Hopes Of Lower Tariffs Against European Cars Are Fading Fast
One of the biggest promises of President Donald J. Trump's electoral race was to impose tariffs on foreign imports, and shortly after he was inaugurated for the second time, "tariffs" quickly became one of the buzzwords of his presidency. When it comes to cars, just about anything produced outside of American borders is going to get a lot more expensive, and due to vastly complex international supply chains, even domestically produced products could be impacted. But there was a glimmer of hope that the president would change - or at least soften - his stance against America's allies in Europe. European Union leaders had publicly expressed this expectation, citing a history of cooperation. However, as the July 9 deadline for tariffs to be further increased approaches, hope is fading, reports Reuters. The publication spoke to an anonymous official who reportedly noted that hopes of relief are fading faster now that tariffs have come into effect: "10% is a sticky issue. We are pressing them, but now they are getting revenues." A second source reportedly said the EU still would not accept the baseline rate but acknowledged that it would be difficult to change or abolish the measure. The European Union has also publicly declared that it would not accept double-digit tariffs as the United Kingdom has, but U.S. Commerce Secretary Howard Lutnick has ruled out the idea of any tariffs being lowered under the 10 percent baseline. What makes this worse is that the tariffs don't only apply to finished products; steel and aluminum from Europe face a 50 percent tariff, and that doesn't even include the standalone 25 percent tariff on foreign cars. The good news is that Europe, with a trade surplus of $236 billion with the U.S., needs to continue doing business with the largest economy in the world, so your local BMW dealer isn't closing up shop anytime soon. An EU official is quoted by Reuters as saying that the 10% baseline rate would "not massively erode competitive positions, especially if others receive the same treatment." And although hope of a compromise is fading, it hasn't been extinguished just yet. As noted by CarScoops, European Commission President Ursula von der Leyen has confirmed that negotiations are still underway, despite President Trump's assertion earlier this week that the EU hadn't been fair thus far. "We're talking, but I don't feel that they're offering a fair deal yet," said President Trump. "They're either going to make a good deal or they'll just pay whatever we say they have to pay." Von der Leyen said, "It's complex, but we are advancing - that is good - and I push hard to pick up more speed. So we are mixed in the negotiations, and we will see what the end brings." The United States government is adamant that its long-standing partners are benefitting more from the status quo than America is, and that mindset means that any price increases as a result of tariffs on EU imports will likely not be small. That said, automakers are working to find ways of absorbing as much of the financial strain as possible, and one way of doing that is by pushing sales of existing inventory with incentives and employee pricing offers. Related: Mercedes CEO Has a Trump Tariff Deal That Could Reshape US-EU Auto Trade Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Miami Herald
3 hours ago
- Miami Herald
Report: Maserati Under Threat of Being Sold by Parent Company
According to a new report published by Reuters, the storied Italian performance powerhouse, Maserati, may be headed toward an uncertain future. The newswire states that "two sources familiar with the matter" told them that parent company Stellantis is exploring a potential sale of the Trident as part of a broader review of its massive portfolio of 14 distinct automotive brands. Discussions regarding Maserati began before Antonio Filosa was named the automaker's new CEO last month. Filosa's first day as CEO of Stellantis is Monday, June 23, where he will take the helm as Carlos Tavares's formal successor. Tavares, who led Stellantis from its inception, stepped down in December amid disappointing U.S. sales and inventory struggles and growing internal and external pressure to reassess the company's direction. Stellantis Chairman John Elkann has a plate and a half full when it comes to overseeing the company's wide range of global brands, which include the likes of Jeep, Dodge, Ram, Peugeot, and Alfa Romeo. The company is under pressure to streamline its operations and invest wisely. Stellantis is a publicly traded company listed on the stock exchanges of New York, Paris, and Milan, and financially savvy investors and analysts think that trimming down the 14-brand lineup could boost Stellantis' margins. Back in April, they brought in McKinsey & Co., a consulting firm based in New York, to examine the impact of new U.S. tariffs and explore options for Maserati and Alfa Romeo. According to the sources cited by Reuters, selling one or both brands is on the table, but any decisions are still in the early phases. In an emailed statement to Autoblog, a Maserati spokesperson provided the following statement: "A spokesperson for Stellantis stated: 'Respectfully, Maserati is not for sale.'" Additionally, a McKinsey spokesperson told Autoblog in a separate emailed statement that they "have no comment for this story." The timing of the Trident's review coincides with its efforts to position itself to navigate some significant industry challenges. Chinese brands and their affordable, tech-forward offerings are eating into the European market share. Like other European automakers, Stellantis is also trying to navigate the steep U.S. import tariffs recently imposed by President Donald Trump, which can greatly impact import brands like Maserati and the expensive motors it imports in smaller numbers. Unlike Stellantis brands like Dodge, Jeep, and Chrysler, no Maserati comes from a production facility in North America; all of Maserati's U.S. lineup is exclusively imported from Italy. Maserati's performance has been underwhelming, as it faces tough ground in its key markets. According to Maserati Chief Executive Officer Santo Ficili, about 35% to 40% of its customers are American. In 2024, Maserati posted an adjusted operating loss of €260 million ($298 million) as it sold just 11,300 units, with 4,819 of those cars reaching drivers in the United States. One of the sources who talked to Reuters said that Stellantis is starting to realize it has more brands than it can really focus on, adding that it needs to "set priorities" with the matter. They also report that some board members are split on this scenario: some think selling Maserati is the best move, while others worry that getting rid of its only luxury brand would hurt the company's reputation. This is not the first time that Maserati has been speculated to be sold. Notably, last year, comments from former Stellantis CFO Natalie Knight suggested that the Trident may be on the way out at the 14-brand automaker, which has sincebeen refuted. However, what we solidly know is that Maserati and Alfa Romeo's brand CEO said that it has a turnaround plan as soon as Filosa takes the helm on Monday, the 23rd. In a June 5 interview with Reuters, he not only denied that Stellantis was selling Maserati, but he also expressed optimism over the future of the Trident and that Filosa will back potential plans, which include new products on the horizon. "We have clear ideas about what we want to do, and we hope we can be ready very soon. Let's wait for Antonio to take up his job," Ficili told the newswire. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
