Bangladesh to expand access to US goods under tariff deal

Bangladesh is preparing to open its market to a wide array of American goods and services, including dairy, meat, liquefied petroleum gas, and aircraft, under a pending trade agreement with the United States, according to officials familiar with bilateral negotiations.

The agreement, which is expected to be signed shortly, forms part of a broader effort by the two countries to deepen economic ties and expand US access to the Bangladeshi market. Bangladesh is set to undertake significant policy and regulatory reforms, including removing foreign ownership restrictions, streamlining investment approvals, and improving transparency for American investors.

The Trump administration reduced tariffs on Bangladeshi exports from 35 percent to 20 percent, a shift that helped ease trade tensions and signalled Washington's interest in strengthening commercial ties with Dhaka.

The pending agreement is expected to broaden this engagement beyond apparel, into sectors such as agriculture, energy, aviation, and infrastructure.

"We will sign an agreement with the US when the US sends us the final document," Commerce Secretary Mahbubur Rahman told The Daily Star yesterday. He declined to share details of the potential agreement.

Under the proposed framework, Bangladesh will remove barriers to US investments in key sectors, including oil and gas, insurance and telecoms. It will also facilitate the issuance of no-objection certificates where required, and establish clear guidelines on capital transfers in freely usable currencies at prevailing exchange rates.

"We will sign an agreement with the US when the US sends us the final document."

— Commerce Secretary Mahbubur Rahman

As part of the deal, Dhaka has agreed to increase its purchases of US soybean oil for the government and to partner with American firms to build silos and related infrastructure for storing US soybeans in Bangladesh.

Washington has also urged Bangladesh to reduce purchases from China as part of its broader Indo-Pacific strategy.

Bangladesh will accept prior marketing authorisation from the US Food and Drug Administration as sufficient for approval of medical devices, and will recognise the US dairy-safety system as equivalent to its own. It will also recognise USDA Food Safety and Inspection Service oversight for US meat, poultry, and egg products, including associated cold storage and processing facilities.

In addition, Bangladesh has pledged to submit a comprehensive notification to the World Trade Organization disclosing all government subsidies, and to address outstanding arrears owed to US firms in accordance with its commitments under the International Monetary Fund programme.

On the regulatory side, the government will ensure that laws, administrative rulings, and proposed regulations are published promptly and made accessible online. This includes regulatory impact assessments and explanatory notes to increase transparency.

Bangladesh also committed to strengthening intellectual property protections by ensuring fair and transparent procedures for the examination, opposition, and cancellation of trademarks and patents.

The agreement marks a strategic shift in Bangladesh's trade orientation and underscores Washington's renewed push to bolster economic alliances in South Asia, as the geopolitical rivalry with China intensifies across the Indo-Pacific.