Tariff Talks: Dhaka steps up US engagement with aviation deal

Staff Reporter :

In a significant step to address its widening trade imbalance with the United States, Bangladesh has announced the purchase of 25 commercial aircraft from American aerospace manufacturer Boeing.

The move is widely seen as part of a broader diplomatic and economic strategy to rebalance bilateral trade ahead of key tariff negotiations in Washington.

The $6.2 billion trade deficit – currently the largest in Bangladesh’s trade history with the US-has prompted a concerted response from Dhaka. Commerce Secretary Mahbubur Rahman confirmed the Boeing deal on Sunday during a press briefing at the Secretariat.

“This is not a government-to-government purchase. Boeing is a private company, and we have officially placed the order,” Rahman stated, noting that the latest agreement builds on a previous commitment for 14 aircraft.
The 25 jets are expected to be delivered within one to two years, subject to Boeing’s production schedule.

The order signals an intensified effort by Bangladesh to demonstrate reciprocal trade interest, particularly at a time when the United States has expressed concerns over a persistent export-heavy imbalance.

In 2024, total bilateral goods trade reached $10.6 billion, with US exports to Bangladesh falling to $2.2 billion, while imports from Bangladesh rose to $8.4 billion. The resulting trade deficit, which grew by 2 per cent over the previous year, has become a central issue in ongoing negotiations.

The announcement comes just days before the third round of high-level tariff talks between the two countries, scheduled for 29-30 July in Washington, D.C. A senior delegation led by Commerce Secretary Rahman – accompanied by Trade Adviser Sheikh Bashir Uddin and senior official Khalilur Rahman – will represent Bangladesh in the discussions with the Office of the United States Trade Representative (USTR). The Boeing deal is part of a wider set of trade initiatives designed to narrow the deficit.

Negotiations are currently underway for long-term soybean import agreements with US agricultural firms, while efforts are also being made to revive US cotton imports to their former peak of $1.8 billion annually – a move officials believe could reduce the trade gap by nearly $1 billion.