Bangladesh is said to propose Boeing jet deal to ease U.S. tariffs

Bangladesh is offering to purchase 25 aircraft from Boeing (NYSE:BA) as part of a broader effort to convince the U.S. to reduce recently imposed tariffs on its exports, using a recent U.S.-Indonesia agreement as a framework, Bloomberg News reported on Sunday.

Commerce Secretary Mahbubur Rahman said the offer reflects commitments Bangladesh believes are economically sustainable.

Rahman will travel to Washington this week as part of a senior delegation led by Commerce Adviser Sk. Bashir Uddin, with meetings scheduled at the Office of the U.S. Trade Representative from July 29 to 31. The discussions come just ahead of a new tariff schedule that takes effect August 1.

While the Boeing (NYSE:BA) jets would take years to arrive, Rahman cited Indonesia’s agreement to purchase 50 aircraft as a template for using long-term deals to unlock tariff relief.

The U.S. recently imposed a 35% tariff on Bangladeshi goods, dealing a blow to the country’s crucial garment industry. Dhaka is now seeking a reduced rate, ideally in line with the lower tariffs granted to regional peers: 20% for Vietnam and 19% for Indonesia and the Philippines.

In addition to the aircraft deal, Bangladesh last week signed a preliminary agreement with U.S. wheat exporters to purchase 700,000 tons annually over the next five years. Rahman also noted rising imports of cotton and soybeans, key raw materials for the country’s manufacturing sector.

Bangladesh currently runs a roughly $6 billion goods trade surplus with the U.S. and hopes the combination of expanded commodity imports and the proposed Boeing (BA) deal will earn more favorable tariff treatment.