Bangladesh Pushes Trade Deal with US Before Elections
The timing and secrecy of the deal have raised concerns among the local business community, as there is little clarity about the provisions included in the draft agreement, according to local media reports.
The trade tensions began in April 2025, when the US imposed a 37% tariff on Bangladeshi goods. Subsequent negotiations led to reductions to 35% in July and 20% in August. Following these talks, Bangladesh’s interim administration, led by Nobel laureate Muhammad Yunus, signed a non-disclosure agreement with Washington to keep discussions confidential from the parliament, public, and industry stakeholders. Reports suggest that the US is also seeking additional conditions, including limiting imports from China and increasing military purchases from the US.
The push for the agreement comes as the US finalized a trade deal with India, Bangladesh’s neighbor and export competitor. With textiles and clothing representing a major portion of exports from both countries to the US, a lower 18% tariff on Indian exports announced by US authorities could disadvantage Bangladeshi shipments. Textiles account for 96% of Bangladesh’s exports to the US, totaling nearly $8 billion.
Relations between Dhaka and New Delhi have been strained following the ousting of former Prime Minister Sheikh Hasina in August 2024. Hasina fled to India, and Bangladesh has demanded her extradition. Her Awami League party, which governed for 15 years before the upheaval, has been barred from participating in the February elections.
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