Bangladesh Races to Sign U.S. Trade Deal
Business leaders across the country have raised alarm over both the timeline and opacity of the negotiations, with no public disclosure of the agreement's contents, a newspaper reported.
Washington initially imposed a 37% tariff on Bangladeshi goods in April 2025. Through diplomatic negotiations, Dhaka successfully negotiated reductions—first to 35% in July, then to 20% by August.
The interim government, helmed by Nobel Prize winner Muhammad Yunus, subsequently entered into a non-disclosure agreement with Washington to shield ongoing negotiations from parliament, the public, and industrial stakeholders. Prothom Alo indicates U.S. officials have demanded additional concessions, including curtailing Chinese imports and boosting defense procurement from American suppliers.
The developments unfold as Washington announced the completion of a trade pact with India—Bangladesh's closest regional partner and simultaneous export rival in key global markets.
Both India and Bangladesh heavily depend on textile and garment shipments to the U.S., and President Donald Trump's announcement of an 18% tariff rate for Indian exports threatens to undercut Bangladeshi competitiveness. The textile sector represents 96% of the country's U.S.-bound exports, valued at nearly $8 billion annually.
Relations between New Delhi and Dhaka have deteriorated sharply since former Prime Minister Sheikh Hasina's removal in August 2024. Hasina sought refuge in India, prompting Bangladeshi authorities to demand her extradition. Her Awami League party, which governed for 15 years prior to the popular uprising, has been prohibited from contesting the February 12 general elections.
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