Business leaders question, express concern over ‘secret’ deal with US

The interim government of Bangladesh is set to sign a tariff agreement with the United States in Washington DC on 9 February, just three days before voting in the 13th parliamentary election.

Questions have arisen over signing the agreement at the government’s final moment in office. The main reason behind these questions is that no one knows what is included in the draft of the agreement. Bangladesh has already signed a non-disclosure agreement (NDA) with the US to keep all aspects of the agreement confidential.

If the agreement is signed on 9 February, the tenure of the interim government will end just a few days later, as voting in the 13th parliamentary election will take place on 12 February. After that, the winning party will form a new government. The responsibility of implementing the agreement will fall on the elected government.

It is not clear what benefits Bangladesh will gain from the agreement with the US. At the same time, business leaders are concerned about what conditions the agreement will include and which sectors may face negative impacts. They are also raising various questions.

According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA) senior vice president Inamul Haque Khan, discussion on the draft agreement is necessary.

He told Prothom Alo that those who may be adversely affected by the agreement remain in the dark, while the government is making decisions.

“Based on the target for purchases from the US, it can be expected that the reciprocal tariff rate will come down to 15 per cent (currently 20 per cent). I had heard that national security adviser Khalilur Rahman had streamlined this. I was surprised to see the signing of the agreement come just three days before the election. I still believe this should have been done after the election, because it carries major implications,” Inamul Haque Khan added.

Alongside exporters, domestic market–oriented businesspersons are also concerned about the conditions of the agreement with the US and want to know what it includes.

Dhaka Chamber of Commerce & Industry (DCCI) president Taskeen Ahmed told Prothom Alo that the contents of the draft agreement are unknown, making it difficult to comment.

He, however, said the interim government could have avoided taking this path right before the election, and it would have been better for the responsibility of signing such an agreement with the US to rest with a government elected by the people.

The issue of an agreement with the US emerged in April last year. On 2 April 2025, US president Donald Trump suddenly announced reciprocal tariffs at varying rates on 100 countries. For Bangladesh, the rate was set at 37 per cent.

Later, the US postponed the imposition of the tariffs for three months. Exactly three months later, on 7 July 2025, Trump announced a reduction of the tariff on Bangladesh from 37 per cent to 35 per cent.

In the meantime, discussions and negotiations continued. On 13 June last year, Bangladesh signed an NDA with the US, which included an obligation to keep the tariff agreement confidential.

After discussions in Washington, the reciprocal tariff rate was fixed at 20 per cent on 2 August last year. At that time, the commerce adviser said, “There will be nothing in the agreement that goes against the country’s interests. Subject to US consent, it will also be made public.”

Even before the agreement was finalised, the reciprocal tariff rate came into effect from 7 August last year. After its implementation, Dhaka and Washington have been preparing for the tariff agreement for six months.

Commerce secretary Mahbubur Rahman told journalists at the secretariat last Sunday, “We have received the date from the US – 9 February. The agreement will be signed on that day.”

He also said that the reciprocal tariff rate may come down from the current 20 per cent, but added that it cannot be confirmed until the agreement is signed.

Commerce adviser Sk Bashir Uddin and commerce secretary Mahbubur Rahman will leave Dhaka on 5 February. After signing the Bangladesh–Japan Economic Partnership Agreement (EPA) in Tokyo, Japan’s capital, on 6 February, the commerce adviser will return to the country. The commerce secretary, however, will travel from there to the US to sign the agreement.

Bangladesh is in a favourable position in bilateral trade with the US. Bangladesh’s exports to the country amount to around USD 6 billion, while imports from the US are approximately USD 2 billion. Trump primarily wants to increase exports of US products to countries like Bangladesh.

Sources at the Ministry of Commerce say Bangladesh is trying to reduce this gap by importing various agricultural products such as wheat, soybean oil, corn, and cotton, as well as aircraft and aircraft parts, and liquefied natural gas (LNG). Bangladesh has indeed increased imports over the past six months.

According to Ministry of Commerce sources, the US has various conditions related to tariffs, non-tariff measures, digital trade and technology, rules of origin, national security, and trade.

In addition, there are conditions to reduce imports from China and to increase imports of military equipment from the US instead of China.

There are also conditions allowing US products to enter Bangladesh freely and for Bangladesh to accept US standards and certifications without question. Washington wants easy access for its automobiles to the Bangladeshi market and also demands that no additional inspections be carried out on the import of its vehicles and parts.

Business leaders say that if tariffs in the US are reduced, Bangladesh’s exports will benefit. However, the central question is what conditions Bangladesh will have to accept and what impact complying with those conditions will have on the country’s industry and trade.

Commerce adviser Sk Bashir Uddin had earlier said that the US is a major agricultural producer, while Bangladesh imports between USD 15 billion and USD 20 billion worth of food products annually. The US wants to capture Bangladesh’s market.

The interim government has taken several other major decisions. For example, in November last year, a 33-year agreement was signed with Denmark-based APM Terminals to construct and operate a new terminal at Laldia in Patenga, Chattogram.

On the same day, another agreement was signed with Switzerland-based Medlog SA to operate the Pangaon Inland Container Terminal on the banks of the Buriganga for 22 years.

The process of handing over the New Mooring Container Terminal of Chattogram Port to UAE-based DP World, currently responsible for operating the Patenga Container Terminal, is also moving forward. The outcomes of these agreements will have long-term effects on Bangladesh.

Meanwhile, when national security adviser Khalilur Rahman visited the Ministry of Foreign Affairs on Monday afternoon, journalists asked him about agreements with various countries at the final stage of the interim government. When specifically asked about agreements with the US, China, or Japan, Khalilur Rahman said, “This is an ongoing process.”

One argument put forward by the government is that such agreements with the US have to be kept confidential, that this is a common practice and that many countries have followed it.

Economists and analysts, however, counter this by arguing that in those countries such agreements are signed by elected governments, and elected governments are accountable to parliament and to the people.

Analysts further note that it is rare for a temporary government to sign such an agreement just three days before an election. They argue that Bangladesh could have requested the US to delay the signing by a few days. Instead, rushing to sign the agreement inevitably raises questions.

Devpriya Bhattacharya, distinguished fellow of the private research organisation Centre for Policy Dialogue (CPD), told Prothom Alo that this is not just a tariff agreement with the US but one with long-term implications.

He said it must be viewed holistically, including its geopolitical and political dimensions.

According to Debapriya Bhattacharya, the agreement is not being made through a transparent process, and because the draft is confidential, there has been no opportunity to assess its pros and cons.

He further said that although the government initially showed a positive attitude toward establishing a humanitarian corridor in Rakhine state of Myanmar, it later retreated after facing setbacks. In contrast, actions such as port-related agreements have been carried out quietly. Had the tariff agreement been signed after the election, political parties could have discussed it. It is also worth considering whether the hands of the incoming elected government are being tied.