Trade Deal with US: No need to worry
Commerce Minister Khandakar Abdul Muktadir has downplayed concerns over the Bangladesh–US trade agreement, saying the deal is designed to provide balanced economic benefits for both countries.
Speaking to reporters on Tuesday after a meeting with Brendan Lynch, a senior US trade official, at the Commerce Ministry, he said such agreements are based on cooperation and mutual interest.
“International agreements rely on coordination between both sides to achieve mutually beneficial outcomes. There is no need for undue concern regarding this deal,” he said.
Muktadir noted that the current government did not initiate the agreement but inherited it as part of ongoing state commitments.
He stressed that such arrangements cannot be treated like personal contracts that can be easily withdrawn.
“This is a state-level agreement. Rather than questioning it, the focus should be on using it effectively to expand trade and investment opportunities,” he added.
Referring to a recent investigation launched by the United States, the minister said Bangladesh had already sought clarification and communicated its position after reviewing the matter.
“We have conveyed that it would have been more constructive had such an investigation not been initiated in the context of the existing agreement,” he said.
Addressing concerns about trade practices, Muktadir rejected claims of overcapacity and allegations of dumping. He noted that Bangladesh remains largely import-dependent and that its export industries—particularly ready-made garments—operate under strict compliance standards.
“There is no scope for labour law violations or child labour in our export-oriented industries,” he said.
On the possibility of revising the agreement, the minister explained that any provisions not aligned with Bangladesh’s interests could be amended within the framework of the deal.
He added that the agreement includes “self-correcting mechanisms” that allow for adjustments without dismantling it entirely.
The meeting also focused on strengthening bilateral trade and investment ties between Bangladesh and the United States. Commerce Secretary Md Abdur Rahim Khan and other officials were present.
Earlier developments indicate that on 2 April 2025, the United States imposed reciprocal tariffs on several countries to address its trade deficit.
Initially, Bangladeshi exports faced a 37 per cent tariff under the Donald Trump administration, which was later reduced to 20 per cent in August following negotiations.
After around nine months of discussions, the two countries signed a reciprocal trade agreement on 9 February, bringing the tariff down further to 19 per cent.
Under the deal, Bangladesh’s key export—ready-made garments—will benefit from zero reciprocal tariffs if produced using US-origin cotton and man-made fibres, creating new opportunities for exporters while strengthening bilateral trade relations.
