Just three days ahead of Bangladesh’s 13th general parliamentary elections, the country’s caretaker government is set to sign a bilateral trade and tariff agreement with the United States. The signing is scheduled for Monday, 9 February, in Washington D.C. However, neither the draft text nor the specific terms have been made public, raising concerns among business leaders and trade experts in Bangladesh.
According to government sources, a Non-Disclosure Agreement (NDA) has been signed with the United States prior to the formal conclusion of the trade pact. As a result, details concerning tariff benefits, conditions, or the agreement’s potential impact remain confidential.
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Business Leaders Express Caution
Leaders of Bangladesh’s export sector have expressed cautious optimism that a US trade deal could improve market access. Yet uncertainties persist regarding the conditions Bangladesh might have to accept, and how these could affect local industry, commerce, and the domestic market.
Inamul Haque Khan, Senior Vice President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), remarked, “Decisions are being taken without a clear understanding of who will benefit and who might incur losses from such a significant agreement.” He indicated that Bangladesh’s export products to the US could face reduced counter-tariffs, potentially dropping from 20% to 15%.
Taskeen Ahmed, President of the Dhaka Chamber of Commerce, said, “Without knowledge of the draft, it is difficult to comment. Ideally, such a decision should be made by an elected government.”
Analysts Raise Transparency Concerns
Devapriya Bhattacharya, Senior Fellow at the Centre for Policy Dialogue (CPD), commented, “The process lacks transparency. If the agreement had been finalised post-election, political parties could have debated it. It remains unclear how much influence the incoming government will have on its implementation.”
Potential Scope of the Agreement
Government sources indicate that the trade pact may cover several key areas:
| Area | Possible Provisions |
|---|---|
| Tariffs and Non-Tariff Barriers | Preferential tariffs or restrictions on selected imports and exports |
| Digital Trade & Technology | Rules governing IT and digital products |
| Rules of Origin | Conditions determining the country of origin for imported products |
| National Security | Provisions linking trade with security considerations |
| Agriculture & LNG Imports | Measures to reduce bilateral trade deficits through import facilitation |
| Aviation & Machinery | Import conditions and procedural regulations |
Currently, Bangladesh exports nearly USD 6 billion worth of goods to the United States, while imports stand at around USD 2 billion. Business leaders warn that efforts to reduce this trade imbalance could involve opening the domestic market further to US products.
Broader Context: Caretaker Government Decisions
Last November, the caretaker government signed a 33-year agreement with Denmark’s APM Terminal to construct and operate a new container terminal at Patenga, Chittagong. On the same day, Switzerland’s Medlog SA was awarded a 22-year contract for the Pangaon inland water terminal. Additionally, DP World is in the process of taking over the New Mooring Container Terminal.
Analysts note that signing major deals immediately before national elections naturally raises questions. They argue that a modest delay in the US deal could have ensured greater transparency, whereas rushing the process has intensified debates over accountability and procedural propriety.