The recent trade deal between Bangladesh and the United States offers a marginal duty cut to 19 percent for Dhaka but comes with significant commitments. The agreement, signed on February 9, extends beyond tariff reductions to integrate Bangladesh’s defense, energy, trade, and digital infrastructure into the US sphere of influence, as reported by The Daily Star.
This comprehensive trade agreement includes clauses that could strain Bangladesh’s relations with China, a key player in the region. The deal mandates Bangladesh to increase purchases of US military equipment while restricting procurement from specific countries, with China being indirectly referenced.
Under the terms of the agreement, if Bangladesh engages in a trade pact with a “non-market country” like China or Russia, the US reserves the right to terminate the deal and reimpose tariffs. Additionally, the US commits to enhancing defense trade cooperation with Bangladesh, raising concerns among experts about the unequal obligations imposed on Bangladesh.
Experts have criticized the trade deal, labeling it as unjust and heavily skewed in favor of the US. The agreement requires Bangladesh to offer zero duty on certain US items and reduce duties on other goods over the next five to ten years, potentially impacting the country’s revenue significantly.
Biman Bangladesh Airlines is set to purchase 14 Boeing aircraft, shifting away from European competitor Airbus, as part of the trade agreement. Moreover, Bangladesh will import around $3.5 billion worth of American agricultural products, including wheat and soybeans, while streamlining the entry of US agricultural commodities into the country.
