Bangladesh’s Inclusion in US Investigation ‘Uncomfortable’, Says BGMEA President

BGMEA President Mahmud Hasan Khan has described Bangladesh’s inclusion in a US investigation—alongside 15 other countries—into potential excess production capacity in manufacturing as “uncomfortable.”

He said there is no reasonable basis for including Bangladesh in the probe.

Mahmud Hasan Khan said that after reading the notice issued by the Office of the United States Trade Representative (USTR), it appeared that the hearing would examine whether the 16 countries were involved in unfair practices, violations of labor rights, incentives for product manufacturing and exports, or infringements of intellectual property rights. If evidence of such practices is found, the United States may impose additional tariffs, he added.

“The inclusion of Bangladesh in the investigation list is uncomfortable,” Khan said. “However, I do not see it as a major challenge. Intellectual property practices in Bangladesh’s product manufacturing are still limited, and the market for US-branded products here is very small. The issue of labor rights has already been resolved, and export incentives are minimal.”

He also noted that questions might arise regarding agricultural subsidies, but pointed out that the United States itself provides subsidies to its agriculture sector. “Our government only provides subsidies for fertilizers,” he said.

Khan suggested that the US may have initiated the investigation to protect its domestic industries. He also emphasized that although the United States is the world’s largest consumer market, Bangladesh’s inclusion in the probe is not justified.

“A major portion of our exports to the United States consists of ready-made garments,” he said. “The types of garments we produce are not something American businesses would manufacture domestically.”

The BGMEA president also said that since Bangladesh has been included in the investigation, the country’s Ministry of Commerce should take advance preparations to handle the matter effectively.

The United States has launched an investigation into 16 countries, including Bangladesh, to examine whether there is excess production capacity and overproduction in the manufacturing sector. US Trade Representative Jamieson Greer announced the investigation on Wednesday.

According to a press release from the Office of the United States Trade Representative, the probe will be conducted under Section 301 of the US Trade Act of 1974.

The investigation will examine whether the policies, measures, or production structures of the concerned countries are unreasonable or discriminatory toward US trade and whether they are causing harm to American commerce.

Besides Bangladesh, the other countries included in the investigation are China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Mexico, Japan, and India.