The inclusion of Bangladesh in a United States investigation into potential excess production capacity in the manufacturing sector is “uncomfortable,” the president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Mahmud Hasan Khan, has said in an immediate reaction.
Speaking to the media on Thursday, Khan said there was no logical justification for Bangladesh to be included in the probe.
“I understand from the notice issued by the Office of the United States Trade Representative that they plan to hold hearings to examine whether unfair practices, violations of labour rights, export incentives, intellectual property infringements, or other irregularities exist in 16 countries,” he said.
“If evidence of such allegations is found, the United States may impose additional tariffs,” he added.
Khan said that while Bangladesh’s inclusion in the investigation was uncomfortable, he did not see it as a major challenge.
According to him, intellectual property-related production practices remain limited in Bangladesh, and the market for American brands manufactured in the country is still small.
He also noted that labour rights issues in Bangladesh’s apparel sector have largely been addressed, while export incentives provided by the government are relatively modest.
“There could be questions about incentives in agriculture, but the United States itself provides substantial subsidies to its farmers. Our government mainly provides subsidies for fertiliser,” he said.
Khan suggested the move could be motivated by Washington’s intention to protect its domestic industries. “The United States has the world’s largest consumer market, but Bangladesh’s inclusion in the probe is not justified,” he said.
He pointed out that Bangladesh’s exports to the US are dominated by ready-made garments, products that American manufacturers typically do not produce domestically.
However, Khan urged the government to remain prepared. “Since Bangladesh has been included in the investigation, the Ministry of Commerce should take advance preparations so that we can effectively address the matter,” he said.
The United States on Wednesday announced an investigation into whether excess manufacturing capacity and overproduction in 16 countries could be harming American trade.
According to a statement from the Office of the United States Trade Representative, the probe was announced by US Trade Representative Jamieson Greer and will be conducted under Section 301 of the Trade Act of 1974.
The investigation will examine whether the policies, actions, or industrial structures of the countries concerned are unreasonable or discriminatory and whether they negatively affect US trade.
Besides Bangladesh, the other economies under investigation include China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, South Korea, Vietnam, Taiwan, Mexico, Japan and India.