Actually, you are almost there...
That is to be expected, as you do not have sufficient permissions on DreamHost to CREATE DATABASE from the command line (or from a script even - you must create all databases from the Control Panel).
Not to worry ... you have already created the database, so the Create statement that is in your exported SQL file is redundant (and, as you saw, will fail anyway).
Just open the SQL file in a "pure" text editor (not a "Word Processor), and delete the line:
db_bbps DEFAULT CHARACTER SET latin1 COLLATE latin1_swedish_c$
Then, run your command line again, with the correct db name matching the one your created in the Control Panel, and you should be in business.
"Chicken and Egg" problem is resolved by creating the database/use first, as you have done, and then just deleting the "CREATE DATABASE" statement. Table creation and other commands in the SQL file should work fine with the permissions you have given that initial MySQL user.