With general elections in Bangladesh just days away, the country seems to have shifted its focus elsewhere – securing a trade deal with the US. The two countries are reportedly set to sign a trade deal on February 9, just three days before Bangladesh’s elections. It is said that the country’s Commerce Secretary Mahbubur Rahman has confirmed the date of signing.
Chief Adviser Bangladesh Muhammad Yunus (Chief Adviser Press Wing)However, what has raised eyebrows is the “confidentiality” of this deal. According to the leading daily of Bangladesh Prothom Hellothe terms of this deal remain unknown and the country has signed a Non-Disclosure Agreement (NDA) with the US to keep everything confidential.
What raises more questions is the finalization of the trade deal at a time when Bangladesh is under the control of an interim government and fresh elections are due on February 12.
The tenure of the current Muhammad Yunus-led government will end just days after the trade deal was sealed, with the incoming government tasked with overseeing the deal’s implementation.
The timing of the deal is also important as it is set to be finalized just a week after India and the US sealed a trade deal under which tariffs on Indian imports were cut by 18%.
Dhaka wants to further reduce tariffsBangladesh currently faces 20% tariffs from the US, down from the 37% tariffs previously announced by President Donald Trump in April 2025. The new tariffs were revised under the President’s subsequent reciprocal tariff announcement in August
The Yunus-led government is reportedly looking to further reduce the tariff to 15%. However, the ambiguity surrounding the terms of this agreement has worried Bangladeshi businessmen.
The garment industry is the lifeblood of Bangladesh’s economy. In 2023, the country’s exports in this sector were estimated to be worth USD 38 billion. Bangladesh Garments Manufacturers and Exporters Association (BGMEA) senior vice-president Inamul Haque Khan was quoted as saying by Prothom Alo, “I was surprised to see the signing of the agreement just three days before the elections. I still believe it should have been done after the elections, as it carries big implications.”
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Traders in the country’s domestic market also feel that the agreement could be signed after the elections, with more clarity on its terms and implications for various sectors.
Secrecy of the treaty, the United States claimsThe NDA details the tariff negotiations and the confidential trade deal is said to be signed in June 2025. A few months after the agreement, the United States reduced import tariffs on Bangladesh to 20%.
There is an import-export disparity between Bangladesh and the United States. Dhaka imports about $2 billion worth of goods from the United States, while it exports $6 billion worth of goods. Prothom Hello.
The US reportedly wants to bridge the gap by exporting more to Bangladesh. In addition to increasing exports of commodities such as wheat, soybean oil, corn and cotton, Washington also wants Bangladesh to buy more military equipment from the United States and reduce its dependence on China, the publication added.
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The US wants easy access for its automobiles to the Bangladeshi market without any additional inspections.
Notably, the February 12 election is the first since Sheikh Hasina was ousted as prime minister following mass student protests in August 2024. Since then he was in exile in India.
