Bangladesh government reviewing US trade deal, says ruling BNP leader
New Delhi, May 28
A United States-Bangladesh trade deal, signed by Dhaka's then Muhammad Yunus-led interim government, has come under severe criticism since an elected government under Prime Minister Tarique Rahman assumed office this February.
The government will take steps regarding the trade agreement signed with Washington while preserving Bangladesh's sovereignty and rights, ruling Bangladesh Nationalist Party (BNP) lawmaker and Economic Affairs Secretary of the party's central committee, Khaled Hossain Mahbub Shyamal, told Bangladesh's The Business Standard newspaper on Thursday.
"Perhaps this kitchen cabinet of the interim government also had its own strategy. However, the agreements they signed were not known to the people of the country, nor were they known to us. They can explain better under what circumstances and in what context those agreements were made," Shyamal said.
"We have obtained a copy of an agreement and are currently working on it. We will try, as far as possible, to review the agreements and take future steps while ensuring that the country's sovereignty and rights remain intact," he added, as per the media report.
Since it assumed office, the new government has been facing pressure to cancel the deal, with reports stressing that the agreement is against the national interest and violates the country's independence and sovereignty.
Concerns were being raised over the agreement signed by the interim government on February 9, only three days before the national election, while maintaining strict secrecy. Some reports pointed to the inclusion of strategic conditions related to national security and geopolitics in addition to tariff concessions, raising questions about how far Bangladesh's interests have been protected.
While the interim government did not disclose the concessions Bangladesh must provide, a contract released by the Office of the United States Trade Representative (USTR) showed that the country has been entangled in a wide range of conditions in exchange for a small tariff concession, reports had claimed earlier.
Among concerns being flagged are extensive tariff concessions for the United States, removal of non-tariff barriers to Washington's industrial exports, removal of non-tariff barriers to agricultural and biotechnology products, and mandatory import of costly goods as part of Dhaka's compliance.
The deal reportedly restricts Bangladesh from entering into any agreement or understanding with a third country that contains scientifically unsubstantiated, discriminatory, or biased technical standards that could harm US exports.
Additionally, if Bangladesh enters into any free trade or preferential economic agreement with a non-market-based country (China and Russia, as considered by the US) that undermines this agreement, the US will be able to cancel the agreement and reimpose punitive tariffs, an opinion piece in The Daily Star had stressed.
The article also stated that Bangladesh will not be able to purchase nuclear reactors, fuel rods, or enriched uranium from countries considered "risky to US interests".
The only exemption that may apply is when there is no alternative supplier or technology, or where deals had already been signed before this agreement took effect.
A caretaker administration was formed under Yunus as its Chief Advisor after Sheikh Hasina's government in Bangladesh fell in July 2024, following mass protests demanding democratic reforms and accountability. Apart from the trade treaty with the United States, the Yunus administration also signed other international agreements. Domestically, it introduced the July Charter, pledging sweeping electoral and constitutional reforms. The Charter is a political and constitutional reform framework designed to institutionalise democratic governance and limit authoritarian power after the 2024 uprising. Its implementation faces serious hurdles, including constitutional deadlock, political dissent, and ambiguity in its provisions. Despite popular approval, its implementation is stalled by conflicting party interests and questions of legal authority.
— IANS
Reader Comments
The restrictions on buying nuclear reactors and fuel rods from countries considered risky to US interests are very concerning. This effectively means Bangladesh is giving up its strategic autonomy. Reminds me of how some countries in our neighborhood have become overly dependent on US patronage at the cost of their own policy space. Good that the new government is questioning this.
Perhaps this is a moment for Bangladesh to reassess its foreign policy balance. India has always supported Bangladesh's sovereignty, and we would welcome a more transparent approach to such agreements. But the new government shouldn't throw the baby out with the bathwater - trade with the US is important. They need a balanced review.
Interesting how the Yunus government signed this just before elections, almost like they were trying to bind the next government's hands. This raises serious questions about the legitimacy of the interim government's actions. Bangladesh's democracy was built on the principle of people's sovereignty - not kitchen cabinet secrets.
From an Indian perspective, this should be a wake-up call for all developing nations in our region. The terms seem heavily one-sided - tariff concessions for the US while restricting Bangladesh's trade with other countries? That's not how fair trade works. I hope the review leads to genuine renegotiation rather than just political posturing.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.