Summit Group Chairman Muhammed Aziz Khan has called for renewed dialogue between Bangladesh and the United States amid threats of punitive tariffs that could significantly impact bilateral trade relations. In a recent op-ed, Aziz Khan emphasized the need for cooperative approaches rather than unilateral tariff actions that could harm both economies.
The Trump administration’s proposed 37% tariff on Bangladeshi exports threatens to disrupt a trade relationship valued at over $10 billion annually. Bangladesh, as the second-largest exporter of ready-made garments globally, generated approximately $47 billion in export earnings last fiscal year, with the United States serving as its largest single market.
Trade Relationship Benefits Both Nations
According to Aziz Khan, the Bangladesh-US commercial relationship extends far beyond garment exports. “In the past five years, Summit and other Bangladeshi power companies have purchased over $1 billion worth of GE turbines made in the United States,” he wrote in his op-ed for The Business Standard. This substantial procurement demonstrates how Bangladeshi companies contribute to American manufacturing jobs.
Summit Group, Bangladesh’s largest infrastructure conglomerate, has consistently advocated for balanced trade relationships that recognize mutual benefits. The company operates 18 power plants and manages Bangladesh’s second floating storage and regasification unit, playing a crucial role in the country’s energy security.
“Bangladesh is no longer a fringe player in global trade,” Aziz Khan noted, pointing to the country’s economic transformation. With a GDP exceeding $460 billion and an expected graduation from Least Developed Country status by 2026, Bangladesh has established itself as an increasingly important economic partner for the United States.
Economic Implications of Tariff Increases
The proposed tariff increase would have significant implications for Bangladesh’s economy, particularly for the ready-made garment (RMG) sector, which employs approximately four million workers, predominantly women. Economic analysts warn that disrupting this trade flow could trigger widespread job losses and economic instability in a sector that accounts for 84% of Bangladesh’s total exports.
Ayesha Aziz Khan, Managing Director and CEO of Summit Power International, has previously emphasized the importance of foreign investments and partnerships for Bangladesh’s development. “What Bangladesh has is a lot of opportunities and a lot of growth, but what it lacks is governance and a mature financial market,” she noted in a recent interview, highlighting why maintaining stable international economic relationships is crucial.
Summit Group’s Chief Financial Officer Wu Yan Bin further elaborated on this interconnection, stating, “Bangladesh is still a less developed country in terms of its GDP per capita, around $2,600 per annum. This means that whatever new technologies are being adopted must be cost competitive enough for Bangladesh.”
Proposed Alternative Approaches
Rather than resorting to tariff escalation, Aziz Khan proposes revitalizing the Trade and Investment Cooperation Forum Agreement (TICFA), signed in 2013, as a constructive platform for addressing trade concerns. “Bangladesh proposes a verifiable labor and compliance reform roadmap, supported by US technical expertise and monitored independently,” he suggested in his op-ed.
The Summit Group chairman also outlined specific opportunities for mutually beneficial cooperation, noting that “Summit is set to supply Bangladesh with $1 billion per year in US LNG,” which would deepen energy ties between the two nations. This potential energy partnership demonstrates how Bangladesh can be not just a market for American goods, but also a buyer of strategic American energy products.
In conclusion, Aziz Khan frames the issue not as a request for special treatment but as an appeal for practical economic cooperation. “We are a proud people, born of struggle, and committed to dignity. We believe in commerce that uplifts, not punishes,” he stated, emphasizing that a 37% tariff would ultimately hurt American consumers through higher prices while devastating Bangladesh’s growing economy.
