Bangladesh to Seal ‘Secret Tariff Deal’ with US, Raises Concerns for India

New Delhi: Bangladesh’s interim government is reportedly planning a secret tariff-related deal with the United States, scheduled for February 9—just three days before the country’s parliamentary elections. While details of the agreement remain confidential under a non-disclosure agreement (NDA), the timing and lack of transparency have raised concerns among trade experts and analysts.

The deal comes shortly after India concluded a trade agreement with the US. Industry leaders fear that the new agreement could shift significant trade volumes toward Bangladesh, potentially impacting India’s recent gains. According to reports, the US had previously imposed a 37% tariff on Bangladeshi goods in April last year, which was gradually reduced to 35% in July and 20% in August. Following the US-India trade deal, tariffs on Indian goods fell to 18%, allowing Indian exporters to strengthen their position. The upcoming Bangladesh-US deal could further reduce Bangladesh’s tariff from 20% to 15%, posing a competitive challenge for India.

US Conditions in the Deal
The proposed agreement reportedly includes multiple conditions for Bangladesh: reducing sugar imports from Bangladesh, increasing purchases of US military equipment, and accepting US standards without additional inspections. The deal is also aimed at expanding US agricultural exports and facilitating access for American automobiles in Bangladesh.

Domestic Opposition in Bangladesh
The timing of the deal has sparked criticism within Bangladesh itself. Trade leaders have questioned why such a significant agreement is being finalized by an interim government. Inamul Haq Khan, Senior Vice President of BGMEA, said, “I still believe this should have happened after the elections, given its far-reaching implications.” Similarly, Taskeen Ahmed, President of DCCI, commented that the interim government could have avoided rushing such a consequential decision.

With little information available, both India and trade analysts are closely watching the outcome, concerned about its potential impact on regional trade dynamics and competitive positioning in the US market.