Bangladesh and US Sign Trade Agreement Amid Secrecy and Conditions

Days after India and United States cemented a crucial trade deal and a few days before our eastern neighbour goes for its much anticipated polls,BangladeshandUnited Statesare all set to sign their own trade agreement on February 9. Experience a more refined e-paper today India's recent pact with US saw a reduction in tariffs from 25 per cent to 18 per cent, bringing much relief to the labour-intensive sector. Bangladesh, on the other hand, which too became a victim of Donald Trump's tariff tirade, seeks to secure its economy as it feels India will overtake its market share. Problems for Bangladesh Textile and garment production accounts for about 80 per cent of exports in Bangladesh, making it heavily reliant on ready-made garment (RMG) exports. This industry was adversely affected during the July Revolution in 2024 (a student-led uprising) and later was caught in the crosshairs of Trump's tariffs—where the US President slapped 35 per cent on the South Asian country. Moreover, even the recent signing of the India-EU trade deal poses a huge problem for Bangladesh. Up till now, Bangladesh enjoyed duty-free shipment of garments to the EU. But, under this deal, India too, will enjoy zero per cent tariffs on their apparel exports. Bangladesh's duty-free advantage might also come to an end soon if the country graduates from least developed country to developing country. A deal shrouded in secrecy In August last year, Bangladesh officials struck a deal with US and managed to bring their tariffs down to 20 per cent—this time around, they are trying to bring it down further to 15 per cent. But what came as a surprise during this deal was the Non-Disclosure Agreement or NDA. Shrouded in secrecy, Bangladesh and US have signed a Non-Disclosure Agreement (NDA), which was highly unusual for trade negotiations. This mean all tariffs and trade deals will be kept confidential and no information will be shared with the public. Analysts also note that it is rare for a temporary government to sign such an agreement just three days before an election. Devpriya Bhattacharya, distinguished fellow of the private research organisation Centre for Policy Dialogue (CPD), toldProthom Alothat this is not just a tariff agreement with the US but one with long-term implications. He also said the agreement is not being made through a transparent process, and because the draft is confidential, there has been no opportunity to assess its pros and cons. Conditions apply According to Bangladesh's Ministry of Commerce sources as reported byProthom Alo, the US has imposed various conditions on the South Asian country. One of them being, that Bangladesh has to reduce imports from China and increase imports of military equipment from the US. Another condition demands Bangladesh to allow US products to enter Bangladesh freely and for Bangladesh to accept US standards and certifications without question. Bangladesh is all set to to vote in general elections on February 12. This is the first election being held in the country since the ouster of former Prime Minister Sheikh Hasina in 2024.