The government is finalizing an agreement with Boeing to purchase 14 aircraft for Biman, worth an estimated Tk 30,000 crore to Tk 35,000 crore, as part of initiatives to narrow the trade deficit with the US. This deal aims to secure a reduction in tariffs on Bangladeshi goods in return for the aircraft purchase.
Commerce and Civil Aviation Adviser Sk Bashir Uddin disclosed that a detailed techno-financial assessment has been conducted, and negotiations led by Adviser Wahiduddin Mahmud have been held with Boeing. The procurement process is still ongoing, with a payment plan spanning over a long-term period, possibly extending up to 20 years.
Sources indicate that Biman will acquire a combination of eight 787-10s, two 787-9s, and four 737 MAX 8s from Boeing. Simultaneously, there are indications that the Trump administration might consider reducing the reciprocal tariff rate on Bangladesh to 18 percent from the current 20 percent post the trade agreement signing between Dhaka and Washington.
The signing ceremony is scheduled to occur in a hybrid format, with Adviser Bashir Uddin and Commerce Secretary Mahbubur Rahman participating virtually, while other ministry officials have traveled to Washington for in-person attendance. Bangladesh has committed to enhancing imports of American products and reducing the trade imbalance to secure favorable trade terms.
In return, the US has agreed not to impose tariffs on garment items manufactured from American raw materials like cotton. Adviser Uddin expressed positivity about the negotiations, highlighting the reduction in tariffs from 37 percent to 20 percent, despite the challenges faced during the process.
The government’s commitment to purchasing 25 aircraft under the agreement, although initially subject to a Non-Disclosure Agreement, is aimed at promoting transparency and accountability. The focus remains on reducing tariffs, particularly on garment exports, with efforts to potentially eliminate tariffs on this key product.
Efforts are underway to boost Bangladesh’s current export value of Tk 1 lakh crore significantly, with a strategic aim to capitalize on this growth potential and drive economic advancement.
