Bangladesh to buy Boeing jets in bid to cut US tariffs, trade gap: advisor

Advisor Sheikh Bashir Uddin says the decision followed a techno-economic feasibility study comparing aircraft from Boeing and Airbus

The interim government is planning to buy aircraft from Boeing as part of efforts to reduce tariffs imposed by the United States and narrow the trade deficit between the two countries, according to Civil Aviation and Tourism Advisor Sheikh Bashir Uddin.

He made the comments at a media briefing in Dhaka on Sunday, saying the purchase was linked to ongoing trade negotiations with Washington.

Noting that Bangladesh had previously faced a 37 percent tariff from the US, which was later reduced to 20 percent following negotiations, he said that the figure might have been lowered further had details of the agreement not been made public.

“Despite that, we managed to bring the tariff down to 20 percent, which remains competitive compared with other countries,” he said.

The advisor also pointed to a shortage of aircraft in the national carrier’s fleet. He said Biman Bangladesh Airlines currently has 19 aircraft, but only 14 are operational, limiting passenger capacity.

According to the airline’s master plan, at least 47 aircraft will be needed by 2035, he said. The proposed deal with Boeing, however, would involve the purchase of 14 aircraft by that time.

He said the decision followed a techno-economic feasibility study comparing aircraft from Boeing and Airbus. A negotiation team led by Planning Advisor Wahiduddin Mahmud has been formed to conduct price talks with Boeing, which are still under way.

Bashir said Bangladesh currently runs a trade deficit of about $6 billion with the US, adding that US officials had raised concerns about the imbalance between Bangladeshi exports and imports.

He said Bangladesh earns more than Tk 1 trillion from exports to the US, while the planned aircraft purchase is expected to cost around Tk 300-350 billion, with payments spread over a long-term period that could extend up to 20 years.

The advisor noted that Bangladesh was continuing negotiations ahead of a deal expected to be signed on Feb 9, with the aim of further reducing tariffs.

He added that the government was also seeking zero tariffs on its main export, garments, as part of the talks.