Bangladesh rushes trade pact with US – media
Bangladesh is scrambling to sign a trade deal with the US on February 9, ahead of the South Asian nation’s general elections slated three days later, according to reports in local media.
The business community in the country, however, questioned the timing and the secrecy surrounding the agreement, since there is no clarity about what is included in the draft of the document, a report in the newspaper Prothom Alo noted.
Bangladesh was first slapped with 37% tariff by the US in April 2025. Dhaka then managed to lower the tariff to 35% in July and 20% in August following talks with the US.
The interim administration of Bangladesh, led by Nobel laureate Muhammad Yunus, later signed an NDA with the US to keep ongoing talks a secret from its parliament, public, and industry leaders. Washington has reportedly pressed for other conditions, including a reduction of imports from China and an increase in military purchases from Washington, according to Prothom Alo.
Notably, the reports come against the backdrop of the US announcing finalizing a trade deal with India, Dhaka’s closest neighbor but also a competitor for exports of some goods to global markets.
Textiles and clothes form a major chunk of exports from India and Bangladesh to the US, and a lower 18% tariff on Indian exports announced by US President Donald Trump would adversely affect Bangladeshi exports. Textiles account for 96% of the country’s shipments to the US and are worth nearly $8 billion.
Meanwhile, bilateral ties between New Delhi and Dhaka have been strained following the ouster of former Prime Minister Sheikh Hasina on August 2024. Hasina fled to India, and Dhaka has been demanding her extradition. Hasina’s Awami League, which was in power for 15 years before the uprising, has been barred from participating in the general elections on February 12.
