No tariff discrimination for Bangladesh in US: Mozena

Bangladesh is not facing any tariff “discrimination” in the American market, Dan Mozena has said, dispelling such concerns.

Meeting reporters who cover economic affairs in Dhaka on Tuesday, the US Ambassador said if a Bangladeshi cotton shirt pays 15.5 percent tariff in the US market, the same shirt from China will pay similar tariff.

“There is no discrimination against Bangladesh in terms of tariff,” he said, “China, Bangladesh, India, and Cambodia all pay the same tariff rate.”

Economic Reporters’ Forum (ERF) organised the event, second of its kind with an US ambassador in two decades of its inception.

President Sultan Mahmud and General Secretary Sajjadur Rahman moderated the meet, which was focused on trade and economy.

The US is the single largest export market for Bangladesh. Washington exports only about $700 million of the total $6 billion two-way trade.

Some of the products used to enjoy GSP privilege until July last year when the US suspended the status on the grounds of factory safety and workers’ rights concerns.

After that, ministers and government officials used to say that Bangladesh has to pay about $800 million to US every year in tariff.

The ambassador, however, rejected such claims and termed those newspaper reports “nonsense”.

“Bangladesh pays zero,” he said.

“I asked the government ‘please show me the cheque of $800million you pay to America’.”

“There is no cheque,” he quipped and explained that Bangladeshi exports to America were subjected to tariff.

“Chinese exports to America are subjected to a tariff of 15.5 percent,” he said, “not China.”

“You should know better than that (common newspaper reports),” Mozena told the reporters.

The ambassador discussed a whole range of US-Bangladesh business relations and said America was the third largest source of remittance after Saudi Arabia and the United Arab Emirates for Bangladesh.

He said a new angle of engagement was that Bangladeshi Americans were coming back here.

Mozena mentioned his visit to all 64 districts and reiterated his dream of seeing Bangladesh as Asia’s next ‘economic tiger’.

He, however, said education was the biggest hurdle for Bangladesh in the way to be an economic tiger.

“Education is the way to build a country,” he said, suggesting the government develop a core group of “teachers with passion”.

And for that he advised recruiting best graduates with high salaries and facilities.

He also suggested aggressive exploration of gas and for that advised offering best prices so that American companies can come and join the bid.

The ambassador cited Myanmar as an example where many American companies were exploring on-shore and off-shore.

“No company is a charity. They have to be in a position to make money,” he said, replying to a question on ConocoPhillips leaving Bangladesh after signing contracts.

He, however, expressed optimism about Bangladesh’s development and said all problems currently the country faced were “solvable”.

“Every challenge can be fixed,” he said, “but I lived in Africa with challenges nobody can fix.”

The ambassador said giving the huge hydro-power potentials in neighbouring Nepal, Bhutan and India, power crisis could be resolved in Bangladesh.

Replying to a question on Bangladesh’s current relations with China, he said, “Bangladesh should always do what is best for the people of Bangladesh.”

Mozena believed China and India could be huge markets for it. “Bangladesh should explore all markets.”

He, however, advised Bangladesh to implement GSP action plan that the US rolled out last year to get back the privilege.