Bangladesh’s failure to prevent a 35% U.S. tariff on its exports has exposed critical flaws in its negotiation approach, most notably the exclusion of private sector stakeholders. As the country confronts steep new duties, it is clear that future talks must involve industry leaders, trade experts and lobbyists.
Throughout the negotiation window, the government operated without private sector input. It assumed that Bangladesh’s Least Developed Country (LDC) status would secure favorable treatment, despite long-standing U.S. trade policies showing little support for LDCs. Officials also delayed their response, expecting a one-year implementation delay that never materialized.
Unlike Vietnam, which promptly offered duty-free access to U.S. goods and submitted detailed proposals, Bangladesh took a slower path. It failed to submit a list of U.S. goods eligible for duty-free access before passing its FY26 budget. Exporters say they were kept in the dark during this period, even though they manage more than 80% of the country’s trade.
Calls from trade bodies such as the BGMEA to hire a Washington-based lobbying firm were declined. Former BGMEA leaders argued that diplomacy alone was insufficient and that a lobbying strategy was necessary to influence U.S. decision-makers. The absence of trade experts during the negotiation left Bangladesh vulnerable to legal and strategic missteps.
The U.S. draft Reciprocal Tariff Agreement included conditions that challenged WTO norms, such as requiring Bangladesh to match U.S. sanctions and limit trade deals with third countries. These terms could have been identified and addressed more effectively with private sector legal experts at the table.
Government officials misread U.S. signals, believing that continued talks indicated acceptance of Bangladesh’s counteroffers. But the 35% tariff confirmed otherwise. Relying on the LDC argument proved ineffective. The U.S. imposed higher tariffs on both Bangladesh and Myanmar than on developing economies like Vietnam and India.
To avoid future setbacks, Bangladesh must institutionalize private sector participation in trade negotiations. Business leaders bring real-time insights into global market dynamics, buyer expectations and compliance risks. Excluding them compromises the quality and credibility of Bangladesh’s trade position.
With export jobs and billions in revenue at stake, Bangladesh can no longer afford to negotiate alone. Public-private collaboration and strategic advocacy must be central to any future trade diplomacy with the United States.