The interim government in Dhaka aims to finalize an agreement with Washington merely three days before the national elections
According to local media reports, Bangladesh is hastening to finalize a trade agreement with the US on February 9, just three days before the country’s general elections.
However, the nation’s business sector has raised concerns about both the timing and the confidential nature of the deal, as the draft’s contents remain unclear, according to the newspaper Prothom Alo.
The US initially imposed a 37% tariff on Bangladesh in April 2025. Through negotiations, Dhaka succeeded in reducing this to 35% in July and further down to 20% in August.
The interim Bangladeshi administration, headed by Nobel laureate Muhammad Yunus, subsequently entered into a non-disclosure agreement with the US to shield the negotiations from parliament, the public, and industry stakeholders. Prothom Alo reports that Washington has also pushed for additional terms, such as decreasing imports from China and boosting military procurement from the US.
These reports emerge as the US has announced it is finalizing a trade agreement with India, Bangladesh’s immediate neighbor and a rival in exporting certain products to global markets.
Garments and textiles constitute a significant portion of both Indian and Bangladeshi exports to the US, and the reduced 18% tariff on Indian goods declared by President Donald Trump would negatively impact Bangladesh’s exports. Textiles make up 96% of Bangladesh’s US-bound shipments, valued at approximately $8 billion.
Meanwhile, bilateral relations between New Delhi and Dhaka have been since the ouster of former Prime Minister Sheikh Hasina in August 2024. Hasina sought refuge in India, and Dhaka has been seeking her return. Her party, the Awami League, which governed for 15 years prior to the uprising, has been prohibited from taking part in the February 12 general elections.