The US and Bangladesh are reportedly set to sign a trade pact on February 9, just days before elections in Bangladesh, the first since Sheikh Hasina’s ouster.
With just days left for the general elections in Bangladesh, the country seems to have diverted its attention elsewhere – securing a trade deal with the United States. Both the countries are reportedly set to sign a trade pact on February 9, just three days before elections in Bangladesh. The country’s commerce secretary Mahbubur Rahman had reportedly confirmed the date of signing.
However, what has raised eyebrows is the “secrecy” of this deal. According to leading Bangladesh daily Prothom Alo, the terms of this deal remain unknown and the country has signed a Non-Disclosure Agreement (NDA) with the US to keep everything under wraps.
What further raises questions is the trade pact’s finalisation at a time when Bangladesh is under an interim government’s control and fresh elections are scheduled for February 12.
The current Muhammad Yunus-led government’s reign will end just a few days after the trade pact is sealed, making it the incoming government’s responsibility to see the deal’s implementation through.
The timing of the deal is also important as it is set to be finalised just one week after India and the US sealed a trade pact under which the tariffs on Indian imports were cut down to 18%.
Dhaka seeks further tariff cuts
Bangladesh currently faces 20% tariffs from the US, lowered down from the steep 37% duties earlier announced by President Donald Trump back in April 2025. The fresh duties were revised under the President’s next reciprocal tariffs announcement in August.
The Yunus-led government is reportedly seeking to further lower the duties to 15%. However, the ambiguity surrounding the terms of this pact has traders in Bangladesh worried.
The garment industry is the lifeblood of Bangladesh’s economy. Back in 2023, the value of the country’s exports in the sector was estimated at USD 38 billion. “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,” Bangladesh Garment Manufacturers and Exporters Association (BGMEA) senior vice president Inamul Haque Khan was quoted as saying by Prothom Alo.
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Domestic market traders in the country are also of the view that the agreement could’ve been signed after the elections, with more clarity on its terms and implications for different sectors.
Secrecy of deal, US’s demands
The NDA to keep the details of the tariff negotiations and the trade pact confidential was reportedly signed in June 2025. It was months after this agreement that the US cut down import tariffs on Bangladesh to 20%.
There is a big import-export disparity between Bangladesh and the US. While Dhaka imports goods worth around $2 billion from the US, it in turn exports products worth $6 billion, according to Prothom Alo.
The US reportedly wants to bridge this gap with more exports into Bangladesh. Apart from increasing the exports of products such as wheat, soybean oil, corn, and cotton, Washington also wants Bangladesh to take in more military equipment from the US and cut down reliance on China, the publication further said.
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The US also seeks easier access of its automobiles into the Bangladeshi market, without any additional inspections.
Notably, the February 12 elections are a first since Sheikh Hasina’s ouster as PM after a mass student uproar in August 2024. She has since been on exile in India.
The article originally appeared on Hindustan Times
