Washington has started a fresh trade investigation against Dhaka over possible unfair practices in manufacturing capacity.

United States Trade Representative (USTR) will examine whether Bangladesh and six other nations give their exporters an unfair edge that hurts American business. India, China, Vietnam and others also feature on the list.

The probe, launched on March 11, focuses on structural excess capacity in key industries. US officials believe heavy subsidies, investment policies and labour practices in these countries create over-production that damages US commerce. If unfair acts are found, Washington may slap higher tariffs on imports from the listed nations.

Bangladesh garment makers show little worry. They stress full compliance with international rules. Mahmud Hasan Khan, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told media, “Garment production here does not harm their industry because they do not make clothes. We do not produce fake goods either. Labour law issues are mostly addressed. Bangladesh has nothing to lose in this investigation but we must respond properly.”

He added that better trade balance would ease pressure. Bangladesh could import more US cotton, wheat, LNG, corn and metal scrap to narrow the deficit.

Economists urge calm diplomacy. Mustafa K. Mujeri, former director general of Bangladesh Institute of Development Studies (BIDS), said, “We operate in a truly transparent way. This kind of investigation is unlikely to affect our exports much.”

The US sees Bangladesh with a goods trade surplus of USD 615 crore, mainly from textiles. Dhaka has already received a formal letter from USTR and must submit written replies by April 15. Public hearings are set for April 28.

Experts advise Bangladesh to keep strong bilateral ties with Washington and strictly follow global labour standards. This will help protect the vital US market for ready-made garments.