Govt to import wheat from US, MoU signing today
Sources said the government has already decided to import 300,000 tonnes of wheat from the US as part of efforts to reduce the trade gap, even if it means paying USD 20–25 more per tonne
In a move to narrow the trade gap with the United States, the interim government has decided to import wheat directly from the US for the first time under a government arrangement.
Until now, wheat from the US had been arriving as aid. The commerce ministry has been holding a series of meetings with US export companies and agencies to explore ways to increase American exports to Bangladesh. The direct import of wheat under government arrangement is a part of the efforts to decrease the trade gap.
According to the commerce and food ministry, a memorandum of understanding (MoU) for the wheat import will be signed today, Sunday, between Bangladesh’s Directorate General of Food, under the Ministry of Food, and the US Wheat Associates, on behalf of the US Department of Agriculture (USDA).
Sources said the government has already decided to import 300,000 tonnes of wheat from the US as part of efforts to reduce the trade gap, even if it means paying USD 20–25 more per tonne. However, the current MoU will cover 220,000 tonnes, with shipments arriving in two consignments of 110,000 tonnes each.
Speaking to Prothom Alo on Saturday, Commerce Adviser Sheikh Bashir Uddin said meetings are underway with various US firms and agencies with three primary objectives. They are boosting bilateral trade between Bangladesh and the USA, building advocacy in favour of Bangladesh, and reducing the US trade deficit.
The weeklong meetings are scheduled to conclude on Tuesday, 22 July, through a final session with the American Apparel & Footwear Association (AAFA), which represents US importers of Bangladeshi garments and footwear.
Earlier, the commerce adviser held online meetings with representatives of US companies and bodies, including Chevron, Excelerate Energy, US Wheat Associates, US Soybean Export Council (USSEC), and the US Cotton Association.
Despite two rounds of negotiations on reducing the 35 per cent reciprocal tariffs by the US on Bangladeshi products, no resolution has yet been reached. As per a letter sent by US President Donald Trump to Professor Muhammad Yunus on 8 July, a new duty is set to take effect from 1 August, raising the existing 15 per cent tariff to a combined 50 per cent.
A delegation led by Sheikh Bashir Uddin is scheduled to travel to the US for a third round of talks. However, as of Saturday, no specific date for this round of discussion has been confirmed by Washington.
In this regard, Commerce Secretary Mahbubur Rahman told Prothom Alo that an official email would be sent to US authorities on Sunday requesting a date for the upcoming negotiations.
Effort to narrow trade gap
The trade gap between Bangladesh and the US has long been in Dhaka’s favour, a fact that has drawn dissatisfaction from the Trump administration.
According to data from the National Board of Revenue (NBR), Bangladesh exported goods worth USD 8.76 billion to the US in the 2024–25 fiscal year, up from USD 7.68 billion the previous year. In contrast, Bangladesh imported USD 2.5 billion worth of US goods in 2024–25, down from USD 2.62 billion a year earlier.
Scrap iron remains the top import from the US, while readymade garments are Bangladesh’s leading export to the country.
Commerce ministry sources said Bangladesh plans to reduce the trade gap by increasing imports of US goods, including wheat, aircraft accessories, edible oil, cotton, and liquefied natural gas (LNG). Bangladesh has already waived tariffs on 190 US-origin products and plans to include another 100 items in the upcoming 2025–26 budget. However, this benefit is not exclusive to the US and will apply to other countries as well.
Under World Trade Organization (WTO) rules, tariff cannot be reduced for any particular product from any particular country. It must apply to all countries for a specific product. Otherwise, other WTO member states may lodge complaints.
Speaking to Prothom Alo, Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue (CPD), cautioned against overly US-centric trade policies.
“My view is different. Let the trade strategy not be focused solely on a single country, as contributions of other trading partners, alongside the US, are not less significant for our economy,” he said, expressing frustration over the WTO’s role over the tariff pressure on developing nationals.
Moazzem also urged caution over wheat imports amid dollar crisis, initiative to import other products without any competition, and import of aircraft parts despite no demand for the time being. He noted that there should be commitments that are inevitable for negotiation, and that any long-term agreement would be risky for Bangladesh in the longer run.