Dhaka: Bangladesh is racing to finalise a trade agreement with the United States after India secured a tariff reduction that could give its exports a major competitive edge in the American market. The proposed US–Bangladesh deal is expected to be signed on February 9, just three days before Bangladesh’s national elections on February 12, sparking political and industry-wide controversy over its timing and secrecy.
The urgency follows a recent India–US trade agreement that cut tariffs on Indian goods to 18 per cent. Bangladeshi officials fear that without comparable or better terms, the country could lose market share to India—particularly in the ready-made garment (RMG) sector, which dominates Bangladesh’s exports to the US.
Washington had imposed a steep 37 per cent tariff on Bangladeshi goods in April 2025. This was later reduced to 35 per cent in July and 20 per cent in August. The forthcoming agreement is expected to bring tariffs down further to around 15 per cent, according to reports.
However, the deal has drawn criticism due to a lack of transparency. In mid-2025, the interim government led by Muhammad Yunus signed a Non-Disclosure Agreement with the US, committing both sides to keep tariff and trade negotiations confidential. No draft of the agreement has been shared publicly, with parliament, or with key industry stakeholders.
Commerce Adviser Sk Bashir Uddin had earlier said the agreement would not harm national interests and could be made public with US consent, according to Prothom Alo. Despite this assurance, details of the deal remain undisclosed.
The same publication reported that the agreement may include several conditions, such as reducing Bangladesh’s imports from China, increasing military purchases from the US, allowing unrestricted entry of US goods, and accepting American standards and certifications without additional scrutiny. It also suggested that inspections of US vehicles and parts could be waived to ease their access to the Bangladeshi market.
Economists and policy experts have raised alarms over the process. Devpriya Bhattacharya, a distinguished fellow at the Centre for Policy Dialogue, said the deal lacks transparency and public debate. He questioned whether signing such an agreement just before elections could bind the hands of the incoming elected government.
Because the agreement is being signed by an unelected interim administration, responsibility for its implementation would fall on the next government, adding to political concerns.
The stakes are particularly high for Bangladesh’s garment industry. The country exports between $7 billion and $8.4 billion worth of apparel to the US annually—nearly 96 per cent of its total exports to the American market—while importing only about $2 billion in US goods. The garment sector employs 4–5 million people, mostly women, contributes over 80 per cent of export earnings, and accounts for nearly one-fifth of the national economy.
Industry leaders say they remain in the dark about how the deal could affect different sectors. Inamul Haque Khan, senior vice president of the Bangladesh Garment Manufacturers and Exporters Association, expressed surprise at the timing of the agreement and said such a consequential decision should have been taken after the elections.
Economist Anu Muhammad has also criticised the deal, accusing the interim government of pushing the country into a risky situation without transparency. In a Facebook post, he questioned whether external pressure or obligations were driving the hurried negotiations.
Adding to the political complexity, US diplomats have reportedly signalled openness to engaging with Jamaat-e-Islami, a party that has been banned multiple times in Bangladesh’s history, most recently under former prime minister Sheikh Hasina.
As the election approaches, the proposed trade agreement continues to fuel debate over economic risk, democratic accountability, and the future of Bangladesh’s most critical export sector.