The United States of America (USA) continued to collect higher tariffs on Bangladeshi products during import from this country. Last year, the US collected 2.5 per cent of its total tariff revenue against imports from Bangladesh. Data available with the US International Trade Commission (USITC) showed that they earned some $824.30 million (82.43 crore) as tariffs while importing Bangladeshi products worth $5276.16 million (527.61 crore) or $5.276 billion in 2014. Total import tariffs collected by US Customs last year stood at $324.84 billion. US imports equal to Bangladeshi exports — by this calculation, it is Bangladeshi exporters who are actually facing tariff peak on the US market. On an average, Bangladeshi products are facing 15.6 per cent tariff. At the same time, average tariff rates on imports from the United Kingdom (UK) and France are 0.92 per cent and 0.96 per cent respectively in the USA. Bangladesh is paying highest amount of tariff among the least-developed countries (LDCs). Dr Mostafa Abid Khan, acting chief executive officer of the Bangladesh Foreign Trade Institute (BFTI), termed the US practice ‘highly discriminatory’. “Main problem is the USA has imposed high tariff on low-end products and Bangladesh mostly export these kinds of products,’ he told The Financial Express (FE). For instance, products like clothes and shoes have to face 14.8 per cent and 12.7 per cent average tariffs while entering the US market against zero tariff on products like aircraft, furniture and toys and games. USITC data also show that tariff has increased following incremental exports of Bangladesh. But last year, total Bangladeshi exports to the USA declined slightly to $5.276 billion from $5.281 billion in 2013. The USA also scrapped GSP (generalised system of preferences) facility for Bangladesh in mid-2013. Thus, last year, there was no export under GSP scheme, although it covered only around 1.0 per cent of Bangladesh’s total exports. Analysis prepared by Progressive Economy, a Washington-based think-tank, revealed that 78 per cent of US imports from developing countries were duty-free. It also showed that 100 years ago, tariffs raised 30 per cent of US government revenue but now it came down to only 1.0 per cent. The US is yet to provide duty-free market access to Bangladesh, along with Nepal and Cambodia. Only these 3 LDCs don’t get tariff-free market access to the world’s largest economy. The US is denying full market access on the plea that the Hong Kong ministerial declaration of the World Trade Organisation (WTO) linked 100 per cent market access with “no later than the start of the implementation period” of the Doha-round trade talk. As the round is yet to complete, there is no binding to implement full market-access facility. Dr Abid, however, said that the WTO has finalised the Trade Facilitation Agreement (TFA) and it would be implemented in July this year. “This is the start of Doha Round implementation and now US has to provide tariff-free market access to Bangladesh.” The Bali Ministerial Declaration in December 2013 has asked developed-country members of the WTO to extend existing coverage of tariff-free market access, if not already covered 97 per cent of products originating from LDCs. Except the US, all the developed countries have already offered duty-free, quota-free market access to almost all the LDCs, including Bangladesh.
