USTR hearing on Bangladesh set for Apr 29

The hearing on the United States Trade Representative’s (USTR) twin investigations into alleged overcapacity in various sectors and forced labour in Bangladesh is scheduled for April 29, as the country prepares for it.

“The hearing with the USTR will be held virtually,” Commerce Secretary Mahbubur Rahman told The Daily Star.

Last month, the USTR launched investigations under Section 301 of the Trade Act of 1974 into Bangladesh and several other economies. The probe is examining whether trade policies and production practices contribute to global overcapacity that could harm US manufacturing, as part of Washington’s efforts to reshore supply chains and boost American jobs.

Separately, the USTR has also opened a forced labour investigation covering around 60 countries, including Bangladesh, to review enforcement actions against imports linked to forced labour.

Bangladesh was asked to set the date for a hearing where issues such as production capacity, labour practices, subsidies and non-tariff barriers are expected to be reviewed.

CONCERNS OVER OVERCAPACITY AND BANGLADESH’S RESPONSE

Regarding preparations for the hearing, Rahman said the USTR has raised concerns about excess production capacity in several sectors, particularly the garment industry.

He said Bangladesh does not have overproduction in the apparel sector. He explained that exporters ship garments to the US only against confirmed work orders from American retailers and brands, and do not export surplus products.

Rahman also said Bangladesh’s export subsidies comply with World Trade Organization rules, which allow member countries to provide incentives to boost exports and improve global competitiveness.

He added that Bangladesh has reduced net export subsidy payments as it prepares to graduate from the Least Developed Country (LDC) group to developing country status in November this year, although it has formally requested a three-year delay of its graduation until November 2029.

A United Nations report says that while Bangladesh meets the graduation criteria, it is not fully prepared due to economic and structural weaknesses.

The USTR has also said Bangladesh’s cement industry is facing severe overcapacity amid a major downturn. National cement consumption fell to 38 million tonnes in 2024 -- less than 40% of total capacity -- and is expected to decline further in 2025.

In 2025, total US goods trade with Bangladesh was estimated at $11.8 billion. US imports from Bangladesh stood at $2.3 billion, up 1.4% or $32.6 million from 2024. US exports to Bangladesh reached $9.5 billion, up 13.3% or $1.1 billion.

As a result, the US trade deficit with Bangladesh widened to $7.1 billion in 2025, an increase of 17.9% ($1.1 billion) from 2024, according to USTR data. Garments remained Bangladesh’s main export to the US, accounting for 86% of total shipments.

LABOUR LAW AMENDMENTS AND UPCOMING CONSULTATIONS

The USTR has also raised questions about Bangladesh’s labour law amendments. Rahman said the interim government amended the labour law through an ordinance last year, making it easier to form trade unions at the factory level.

He added that the newly elected BNP-led government also approved the amended labour law in Parliament last week.

Rahman further said Bangladesh does not have child labour in any formal sector.

Ahead of the hearing, the commerce ministry will hold consultation meetings with stakeholders on April 20 or 21 to gather their views, he added.