Bangladesh News Bangladesh - U.S.A Relation

PutinBro

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He was asked multiple times, later once he said, Bangladesh won't sign agreement with a country who sanctions us.
He was probably fed up with questions.Officialy BD never withdrew talks with USA on this matter.
 
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Bangladesh-US keen to begin new chapter in relations: Foreign minister​


Diplomatic Correspondent
Dhaka
Updated: 26 Feb 2024, 11: 05

Foreign minister Hasan Mahmud and the US delegation pose for a photoFacebook page US embassy Dhaka
Bangladesh and the United States are interested in starting a new chapter in relations, said Foreign Minister Hasan Mahmud on Sunday.
He further said that the issue was discussed with the visiting US delegation in a very cordial atmosphere for more than an hour.

The members of the US delegation led by special assistant to the president and Senior Director of South Asia Affairs of the National Security Council Rear Admiral Eileen Laubacher met the Foreign Minister at the Ministry of Foreign Affairs on Sunday.

The foreign minister informed the media after the meeting.
The US delegation also included Assistant Administrator at USAID Bureau for Asia Michael Schiffer and US Assistant Secretary of State for South and Central Asia Afreen Akhter.

“How they (the US) can help us in our development journey and how to increase investment in Bangladesh was also discussed. Our mutual interest in starting a new chapter in the relationship was discussed in a very cordial atmosphere. We discussed it for more than an hour,” Hasan Mahmud stated.

The foreign minister also informed the media that talks have been held with US officials regarding bringing Bangabandhu’s self-confessed killer Rashed Chowdhury back to the country. “They are waiting for a decision from their judiciary regarding Rashed Chowdhury and they have informed us about it,” he added.

The cooperation between the two countries on security issues and the cooperation in international forums were also discussed, the foreign minister expressed.

When asked about the discussion on the agreements on GSOMIA (General Security of Military Information Agreement) and ACSA (Acquisition and Cross-Servicing Agreement), Hasan Mahmud stated, “No specific agreement was discussed. But we are working on GSOMIA.”

Foreign minister Hasan Mahmud talks to the mediaCourtesy Foreign Ministry
In response to a question of a newsperson, the foreign minister said that there was no discussion on the recently concluded parliamentary election, meeting with the civil society and the country’s human rights situation.
Mentioning that there was a discussion on the Rapid Action Battalion (RAB), Hasan Mahmud said, “They informed us about five observations. We are working on those observations and they have started working on how to lift the sanctions.”

The foreign minister further said about the five observations on the lifting of sanctions against RAB, “They will inform us and we will convey those to RAB. We are waiting for details from them.”

The foreign minister also informed the media that the situation in Myanmar has created a security risk in Bangladesh and the matter was discussed in the meeting. “I have handed over to her (Rear Admiral Eileen Laubacher) the reply to the letter that President Joe Biden sent to Prime Minister Sheikh Hasina. Our ambassador in Washington will deliver to her the original copy of the letter.”

Meanwhile, the US Embassy in Dhaka said in a post on its Facebook page about this meeting, “The United States supports a prosperous, secure, and #democratic Bangladesh. We discussed with the Foreign Minister, how our two countries can work on mutual interests, including #economic development, #security, #refugees, #climate, #labor, and #trade. #Bangladesh is an important partner in the Indo-Pacific region.”

If he able to pull off GSOMIA-ACSA deals within the next 6 months or maybe a year then I might change some of my ill perceptions about this guy which I've for many years.
 

yf120

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BD not working on ACSA.Only GSOMIA for the time being.Also such decisions are not taken by FM.
Makes sense for not going for ACSA now. I know there is a dedicated team working on these two but come on man, they're G2G agreements so, MOFA has a great deal and influence on it. By FM it doesn't literally mean only him.
 

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US slaps sanctions on ex army chief Gen Aziz for 'significant corruption'

TBS Report
21 May, 2024, 06:00 am
Last modified: 21 May, 2024, 11:09 am

His actions contributed to undermining democratic institutions, said the US State Department​


Former Army Chief General Aziz Ahmed. Picture: Collected

Former Army Chief General Aziz Ahmed. Picture: Collected

The United States has imposed sanctions on former army chief Retd Gen Aziz Ahmed and his family over allegations of "significant corruption," stating that his actions contributed to undermining "Bangladesh's democratic institutions and the public's faith in public institutions and processes."

A statement published on the US State Department website yesterday (20 May) at midnight (Bangladesh time) announced the ineligibility of Aziz Ahmed and his family members from entering the United States.

"Aziz Ahmed engaged in significant corruption by interfering in public processes while helping his brother evade accountability for criminal activity in Bangladesh," US State Department spokesman Matthew Miller said in the statement.

As per the statement, Aziz also worked closely with his brother to ensure the improper awarding of military contracts and accepted bribes in exchange for government appointments for his personal benefit.

Previously in 2021, Al Jazeera releases an explosive documentary implicating Aziz and some of his family members in corrupt acts. However he had stated that the allegations against him are false, concocted and part of a conspiracy by vested groups.

"When I met my brother in Malaysia, there was no case against him. That case was due to a conspiracy, from which he was then acquitted. He was released in March, and I went to Malaysia in April. As a result, the propaganda that Al-Jazeera is running is completely malicious. The day I met him, there was no case against him, nor any sentence," he said in 2021.

Previously, the US Government sanctioned the Rapid Action Battalion (RAB) on 9 December 2023 for alleged human rights violations, a move met with scorn and confusion from the government with Law Minister Anisul Huq calling the allegations "fictitious," and "extremely unfortunate."

Diplomatic efforts did not resolve the issue as was hoped following a meeting with Donald Lu, the US Assistant Secretary of State for South and Central Asian Affairs. During a US State Department press briefing, Vedant Patel said that claims of lifted sanctions were false, "The United States is not withdrawing the sanctions against RAB," Patel said.

The US has also recently imposed another round of sanctions on five Russian individuals due to their connection to transfers of military equipment between North Korea and Russia. Russia has grown increasingly reliant on ammunition purchases from North Korea as its invasion of Ukraine drags on in its third year.

Sanctions have also been applied to Sudan by the US Department of the Treasury's Office of Foreign Assets Control, who sanctioned Ali Yagoub Gibril and Osman Mohamed Hamid Mohamed who led the Rapid Support Forces' (RSF) war campaign. The RSF's attacks in North Darfur, which started last month, have caused dozens of civilian casualties, including children and have endangered nearly one million Sudanese civilians in the last major safe haven in Darfur.

 

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Defense Cooperation and Operational Flexibility: The Case for Bangladesh​


Situated on the tip of the Bay of Bengal, Bangladesh is one of the fulcrum points of the Indo-Pacific. Boasting a large maritime space in an area removed from the intensity of the South or East China Seas, yet close enough to support varied needs of the operations in those regions, Bangladesh could be a key logistics node for the U.S. Navy.

Its naval potential remains untapped, but the Bay of Bengal’s long maritime history provides a strong historical grounding.

It can play a vital role in maritime operations in the broader Indo-Pacific as it overlooks major trade routes going through the strait of Malacca and is adjacent to the Strait of Hormuz. With India and Myanmar as its neighbors, Bangladesh has significant challenges in its naval domain. However, it has a vibrant shipbuilding industry and Bangladesh Navy-owned repair facilities could support U.S. naval assets during any conflict.

Moreover, its naval bases potentially could be used either for logistical or, depending on the possibility of a defense agreement, in actual blockading operations supporting broader U.S. Navy goals in the Indo-Pacific region.

Strategic Positioning


Bangladesh’s primary naval bases overlook Myanmar’s Rakhine region and China-Myanmar Economic Corridor (CMEC), a key component of China’s belt and road initiative aimed at lessening pressure on Chinese sea lines of communication (SLOC) in the South China Sea. Cooperating with the Bangladesh Navy, the U.S. Navy could use those bases to observe Chinese projects.

Moreover, Bangladesh’s strategic vantage at the top of the Bay of Bengal funnel could provide the United States with an advantage in guarding the Malacca Strait, which is vital to the Chinese economy and industry.

Bangladesh recently promoted the notion of a “Free and open Indo-Pacific” in its policy outline. However, the policy reflects its traditional foreign policy dictum: “Friendship to all and Malice toward none.” Bangladesh respects the sovereignty of all other countries, political independence, and noninterference in the domestic affairs of other nations.

Thus, more engagement is necessary to incentivize Bangladesh toward a closer alignment choice that benefits U.S. Indo-Pacific strategy.
Bangladesh seeks the enhanced security of Indo-Pacific maritime sea lanes, crucial for maintaining its economy which is interconnected with the global economy.

A large segment of global maritime oil shipments transit the Indian Ocean region, including those of U.S. treaty allies such as Japan, the Republic of Korea, and the Philippines. Maintaining security in this region is essential not only for Bangladesh and its economy, but also for the U.S. Navy.

In developing the Indo-Pacific Outlook, Bangladesh recognized the importance of maintaining freedom of navigation, responding to maritime crises, and carrying out search-and-rescue operations in compliance with international conventions, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS). While this clearly aligns with the rules-based order that the U.S. Navy seeks to enforce, the lack of clear alignment and the absence of concurrent maritime strategy and doctrinal documents reveal a slow-moving and risk-averse strategy.

The Bangladesh Navy


It must be noted that the recently articulated Indo-Pacific Outlook echo the policies of the United States for a free and open Indo-Pacific. Aside from policy, Bangladesh has a moderately powerful navy and naval bases in the region. The Bangladesh Navy has undergone rapid modernization in recent years and has purchased significant U.S. and European equipment that has bolstered its capabilities. With the development of indigenous Link-22 standard Data Link, known as Bangla-22, and Western training and aspirations to model itself after Western navies, the Bangladesh Navy could be easily integrated into broader Indo-Pacific operations after proper interoperability exercises and operational changes.

In recent years, Bangladesh has increased its maritime security capability by purchasing submarines from China. In 2016, Bangladesh received two Ming-class submarines from China. Though the designs are older, these submarines are effective for training, capacity building, and area-denial roles. Bangladesh also is in the process of constructing a naval base with submarine berthing and aviation facilities, further enhancing its maritime capabilities with Chinese assistance and loans.

It is the lack of access to Western platforms and financing that has driven Bangladesh to source the submarines from China. If proper financing, technology, and platform support were offered, Bangladesh could be a potential candidate for modern Western diesel-powered conventional attack submarines.

The Bangladesh Navy also has a significant number of frigates, corvettes, and large patrol ships. Guided-missile frigates and corvettes are designed for antisubmarine warfare and are equipped with advanced armaments, including an FM-90N short-range air defense missile system, torpedo tubes, naval guns, machine guns, and aviation facilities for antisubmarine warfare helicopters. Large patrol crafts (LPC) play a significant role in Bangladesh’s naval fleet, enhancing its maritime defense and surveillance capabilities.

These vessels are designed to operate in various naval warfare scenarios, including air, surface, and subsurface operations. LPCs are integral to Bangladesh’s maritime defense strategy, safeguarding its exclusive economic zone, conducting search-and-rescue operations, protecting natural resources, and enforcing maritime laws in the region.

The United States should consider other similar equipment that could enhance Bangladesh's naval combat capabilities.
Bangladesh also has U.S. Coast Guard cutters and the modernization plans outlined in the Forces Goal 2030 would have transformed the surface fleet with modern platforms based on Western designs and philosophy.

Recent years have seen a significant slowdown of the naval modernization drive but a fresh injection of interest by the U.S. Navy, backed by a proper support package, could incentivize rapid movement on this front.

The United States would benefit from joining the Bangladesh Navy in its modernization effort by providing it with training and by selling them U.S. equipment and technology. These would enhance Bangladesh’s maritime security partnership with the United States and enhance mutual dependency. Moreover, the U.S. Navy could increase the number of its naval drills with Bangladesh involving varied degrees of complexity and spanning multiple domains to further provide that country with important operational experience and enamor them to the U.S. Navy.

Logistics and Safe Harbor


During any potential conflict, Bangladesh’s naval bases could be a hub for logistics and a safe harbor for the U.S. Navy. The United States currently has no bases in the Bay of Bengal. While Diego Garcia Island will certainly be a logistics hub for operations in the Indian Ocean, Bangladesh—with its manpower, vibrant shipbuilding industry, and a professional navy—could offer U.S. Navy ships a place for rest, recuperation, and rearming.

Bangladesh currently is building a deep seaport in Matarbari, Cox’s Bazar with the assistance of Japan, one of the most trusted and important U.S. allies since World War II. Japan could help build a bridge between these two countries to ensure that the USN could use Matarbari deep-sea port as a naval operations base during any future war by blockading potential Chinese shipments that bypasses the Malacca to use CMEC as an alternative. This would provide the United States leverage against China in the Bay of Bengal region.

Smaller countries are often more interested in a close-knit relationship with bigger powers to offset the power imbalances they face when dealing with potential adversaries. With China firmly on the side of Myanmar as evident by the Rohingya refugee crisis, Bangladesh could provide the United States with an opportunity to establish a long-term partnership as a counter to China-dominated Myanmar. Along with potential base facilities, Bangladesh is also a vibrant and aspiring democracy.

This aligns with the United States’s global value-based order as long as Bangladesh retains its democratic credentials.

Bangladesh’s location also has the potential to allow U.S. long-range ISR advantages over China by creating pressure on not only the Tibetan front, but also on Yunan.

Bangladesh can be one of the most effective partners for the United States in the Indian Ocean and the United States would benefit from a cordial relationship with it.

Defence Cooperation and Operational Flexibility : The Case for Bangladesh
 
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Bangladesh could be a key logistics node for the U.S. Navy.
However, it has a vibrant shipbuilding industry and Bangladesh Navy-owned repair facilities could support U.S. naval assets during any conflict.
Cooperating with the Bangladesh Navy, the U.S. Navy could use those bases to observe Chinese projects.
Bangladesh’s strategic vantage at the top of the Bay of Bengal funnel could provide the United States with an advantage in guarding the Malacca Strait, which is vital to the Chinese economy and industry.
The United States would benefit from joining the Bangladesh Navy in its modernization effort by providing it with training and by selling them U.S. equipment and technology.
During any potential conflict, Bangladesh’s naval bases could be a hub for logistics and a safe harbor for the U.S. Navy. The United States currently has no bases in the Bay of Bengal. While Diego Garcia Island will certainly be a logistics hub for operations in the Indian Ocean, Bangladesh—with its manpower, vibrant shipbuilding industry, and a professional navy—could offer U.S. Navy ships a place for rest, recuperation, and rearming.
Japan could help build a bridge between these two countries to ensure that the USN could use Matarbari deep-sea port as a naval operations base during any future war by blockading potential Chinese shipments that bypasses the Malacca to use CMEC as an alternative. This would provide the United States leverage against China in the Bay of Bengal region.
Bangladesh could provide the United States with an opportunity to establish a long-term partnership as a counter to China-dominated Myanmar.
Bangladesh’s location also has the potential to allow U.S. long-range ISR advantages over China by creating pressure on not only the Tibetan front, but also on Yunan.

Yeah, keep dreaming. Never happening!! We didn’t liberate our country from one slave to lick another's boot!!

The whole article is about giving US all the benefit & access to Bangladeshi military & civilian installations to counter China. What a load of crap!! Nothing about defence cooperation.

Most shocking part is two Bangladeshis from DU wrote this. How much US paid these two?! Are they trying to prove that Hasina was right?!
 

PutinBro

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Nothing about defence cooperation.

The Bangladesh Navy


It must be noted that the recently articulated Indo-Pacific Outlook echo the policies of the United States for a free and open Indo-Pacific. Aside from policy, Bangladesh has a moderately powerful navy and naval bases in the region. The Bangladesh Navy has undergone rapid modernization in recent years and has purchased significant U.S. and European equipment that has bolstered its capabilities. With the development of indigenous Link-22 standard Data Link, known as Bangla-22, and Western training and aspirations to model itself after Western navies, the Bangladesh Navy could be easily integrated into broader Indo-Pacific operations after proper interoperability exercises and operational changes.

In recent years, Bangladesh has increased its maritime security capability by purchasing submarines from China. In 2016, Bangladesh received two Ming-class submarines from China. Though the designs are older, these submarines are effective for training, capacity building, and area-denial roles. Bangladesh also is in the process of constructing a naval base with submarine berthing and aviation facilities, further enhancing its maritime capabilities with Chinese assistance and loans.

It is the lack of access to Western platforms and financing that has driven Bangladesh to source the submarines from China. If proper financing, technology, and platform support were offered, Bangladesh could be a potential candidate for modern Western diesel-powered conventional attack submarines.

The Bangladesh Navy also has a significant number of frigates, corvettes, and large patrol ships. Guided-missile frigates and corvettes are designed for antisubmarine warfare and are equipped with advanced armaments, including an FM-90N short-range air defense missile system, torpedo tubes, naval guns, machine guns, and aviation facilities for antisubmarine warfare helicopters. Large patrol crafts (LPC) play a significant role in Bangladesh’s naval fleet, enhancing its maritime defense and surveillance capabilities.

These vessels are designed to operate in various naval warfare scenarios, including air, surface, and subsurface operations. LPCs are integral to Bangladesh’s maritime defense strategy, safeguarding its exclusive economic zone, conducting search-and-rescue operations, protecting natural resources, and enforcing maritime laws in the region.

The United States should consider other similar equipment that could enhance Bangladesh's naval combat capabilities.
Bangladesh also has U.S. Coast Guard cutters and the modernization plans outlined in the Forces Goal 2030 would have transformed the surface fleet with modern platforms based on Western designs and philosophy.

Recent years have seen a significant slowdown of the naval modernization drive but a fresh injection of interest by the U.S. Navy, backed by a proper support package, could incentivize rapid movement on this front.

The United States would benefit from joining the Bangladesh Navy in its modernization effort by providing it with training and by selling them U.S. equipment and technology. These would enhance Bangladesh’s maritime security partnership with the United States and enhance mutual dependency. Moreover, the U.S. Navy could increase the number of its naval drills with Bangladesh involving varied degrees of complexity and spanning multiple domains to further provide that country with important operational experience and enamor them to the U.S. Navy.
 

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The White House has avoided Bangladesh issues in its readout, though the Indian side, through their Prime Minister's Office, has said Biden and Modi discussed the situation in Bangladesh as well as other issues.

 

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US President Joe Biden has offered his country's full support to Bangladesh and Muhammad Yunus-led interim government during his bilateral meeting with the chief adviser on the sidelines of the UN General Assembly in New York.

Chief Adviser Prof Yunus' meeting with the US president today is seen as a "rare occasion" and this is the first time in the history of Bangladesh that a US president met the head of Bangladesh government on the sidelines of UNGA, according to a statement from the Chief Adviser's Office.

During the meeting Prof Yunus apprised Biden about how the students rose against the tyranny of the previous government and gave their lives to create this opportunity to rebuild Bangladesh.

He stressed that his government must succeed in rebuilding the country and would need US cooperation.

President Biden said if the students could do so much sacrifice for their country, they too should do more.

Prof Yunus handed a copy of The Art of Triumph, a book on wall paintings drawn by the students and young students during the revolution, to President Biden during the meeting.

Yunus is on his first visit to the US as head of the Bangladesh government to attend the 79th UNGA. The general debate of UNGA began today, and will continue through 28 September, and conclude on 30 September.

The theme for the general debate is "Leaving no one behind: acting together for the advancement of peace, sustainable development and human dignity for present and future generations."

Regarding the meeting with Biden, Chief Adviser's Press Secretary Shafiqul Alam said, "This is an important day. It is very rare [to see such a meeting] at the UNGA."

Shafiqul said Bangladesh in any case maintains very good relations with the US and with this meeting the relationship will reach a new level, reports UNB.

"It's good news that the US stands beside Bangladesh in this period of transition," he added.

The meeting is very significant as no US president has held a bilateral meeting with any Bangladesh head of government in the past decades in New York, reports UNB.

By having this meeting, Washington is signalling not just bilaterally or regionally, but to the world at large that it is standing by Bangladesh during the period of upheaval it is going through.

It is not usual for a US President to hold bilateral meetings during the UNGA and Dhaka hopes to see a new strategic partnership emerge from this meeting that will strengthen the ties with the US on all fronts.

World leaders greet Yunus

Earlier in the day, Chief Adviser Muhammad Yunus was greeted by several world leaders after he joined at a welcome reception hosted by United Nations (UN) Secretary General Antonio Guterres, reports BSS.

The reception ceremony began at 8am (New York time) at North Delegate Lounge of the UN headquarters in New York to welcome the global leaders joining the 79th session of the United Nations General Assembly.

Prof Yunus exchanged pleasantries with Brazil President Luiz Inacio Lula da Silva, President of Mauritius Prithvirajsingh Roopun and UN High Commissioner for Human Rights Volker Turk, among others.

Yunus meets Trudeau

Meanwhile, on the sidelines of the UN General Assembly, Chief Adviser Prof Yunus met Canadian Prime Minister Justin Trudeau.

During the brief meeting, the two leaders discussed ways to cement Bangladesh-Canada relationships, deepen freedom, build institutions, and support the youth of Bangladesh.

Trudeau appreciated Prof Yunus for assuming the responsibility and expressed Canada's readiness to support institution building in Bangladesh.

The chief adviser described how the previous regime destroyed institutions of the country. He appreciated Canada for its friendship with Bangladesh and the Canadian government's support for the interim government.

Prof Yunus requested Canada grant more visas to Bangladeshi students.

The chief adviser also handed over The Art of Triumph art book to the Canadian prime minister, according to the CA's press wing.

The chief adviser will also meet the IMF managing director and the Italian prime minister and will also speak at the Clinton Global Initiative and at Friends of Bangladesh.

 

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The U.S. Global Peacekeeping Operations Initiative and the Office of Defense Cooperation at the U.S. Embassy handed over airfield support equipment including telescopic forklifts and an aircraft tow tractor to Bangladesh Air Force's 212 Maintenance Unit.

462906381_966605035505445_9214550985900912539_n.jpg
 

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Former US diplomat Jon F Danilowicz underscored the United States’ historical relationship with Bangladesh, acknowledging past missteps, particularly during the 1971 Liberation War.

He stressed the need for political accountability in Bangladesh and recognised the military's role in maintaining stability amid a sometimes fragile civil administration.

Commenting on the current landscape, Danilowicz noted that Bangladesh is engaged in an ongoing information war and warned that the country is losing ground in this critical domain.

He reflected on the US intervention in Bangladesh’s 1/11 political crisis in 2011, labeling it a strategic mistake.

Looking ahead, he expressed hope that Bangladesh would adopt a “Bangladesh First” policy, prioritising national interests in governance and diplomacy.

 

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Highlights:
  • 190 products currently get zero tariff facility
  • 100 more products to be included in the zero tariff schedule
  • Bangladesh planning a long-term LNG deal with US
  • Encourage US private equity access to Bangladesh healthcare
  • Propose US auto makers to set up car manufacturing plants
  • Inspire private entrepreneurs to import soy, wheat, cotton etc

The government will facilitate the export of 100 more products to Bangladesh at zero tariff to reduce the trade deficit with the United States.

Bangladesh Commerce Advisor Sheikh Bashir Uddin sent a letter to the United States Trade Representative (USTR) this evening (7 April) informing about the government's initiative.

Speaking to The Business Standard, Commerce Adviser Bashir said the letter sent to the USTR mentions bringing 100 products under a new zero-tariff schedule, and most of these are US-made products.

"This will increase US exports to Bangladesh," he said.

"Currently, 75% of our imports from the US consist of cotton, scrap, soy, and petroleum products. We are trying to identify and remove any tariff and non-tariff barriers the US faces when exporting other products to Bangladesh, in order to increase our imports.

"Since Bangladesh is on the path to LDC graduation, we have to undertake these measures as part of trade liberalisation," he added.

A copy of the letter, issued by the commerce ministry, was seen by The Business Standard correspondent.

In his letter, Bashir Uddin wrote, "Our Tariff Schedule contains 190 product lines with zero tariff and another 100 product lines are being considered to be included in the zero tariff schedule."

Furthermore, the letter also said Bangladesh was planning a long-term LNG deal with the US and would provide private equity access to healthcare to get tariff relief.

"Our government is examining ways to reduce tariff rates and eliminate all kinds of non-tariff barriers and has initiated reforms to enhance mutually beneficial trade for both countries. The reform initiative includes import policy order, simplification of customs procedure, enforcement of intellectual property rights, protect trademarks, patent rights and so on," reads the letter.

"We are also planning long term LNG deal with US counterpart and set to propose US auto makers to set up car manufacturing plants and inspiring private entrepreneurs to import soy, wheat, cotton etc. on enhanced scale. We will encourage US private equity access to healthcare and other service sectors of Bangladesh. I am confident these steps among others will contribute to narrowing gaps between our bilateral trade."

The letter also states, "Since the withdrawal of preferential access of Bangladeshi exports to the US, your esteemed government has been imposing 15% tariff on all goods from Bangladesh while we impose a weighted average tariff on US products at 6.10% where raw cotton and steel scrap face tariff rate at 0% and 1% respectively. Bangladesh, one of the largest importers of US cotton, manufactures readymade garments, and exports facing higher tariffs in the United States."

Bangladesh remains committed to open dialogue and collaboration to remove any barrier to the US exports to Bangladesh, if any, and to resolve trade disputes and promote mutual prosperity, adds the letter.

"We have already held successive meetings with the trade wing of the US embassy in Bangladesh to identify barriers to US trade with Bangladesh and agreed a number of measures to resolve," the letter states.

"The Chief Adviser, Nobel laureate, Professor Dr Mohammed Yunus and his government including my office commit to take all necessary steps to initiate constructive engagement and plausible dialogue with your esteemed department to strengthen our bilateral trade relation to benefit trade of both the countries and improve livelihood of both the peoples. I am eagerly looking forward to receiving your response in this regard," the letter concludes.

Earlier in the day, Chief Adviser Muhammad Yunus addressed a letter to US President Donald J Trump requesting him to postpone the application of US reciprocal tariff measures on Bangladesh for three months to allow the interim government to smoothly implement its initiative to substantially increase US exports to Bangladesh.

On 2 April, US President Donald Trump imposed reciprocal tariffs on goods exported by other countries, including 37% on Bangladesh, 26% on India, 34% on China and 20% on the European Union, as a response to duties put on US goods.

In response, the government announced plans to revise its import policy by easing non-tariff barriers to facilitate US exports, while CA Yunus remains hopeful of positive progress in resolving the tariff issue through talks with the US government.

On 5 April, Chief Adviser Muhammad Yunus convened an emergency meeting to discuss the US tariff issue.

After the meeting, Commerce Adviser Sk Bashir Uddin said Bangladesh plans to increase imports of essential goods from the US and reduce its trade surplus with the country to negotiate the 37% tariff, set to take effect on 9 April.

 

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Highlights:
  • US agrees in principle to FTA with Bangladesh
  • FTA aims to boost Bangladesh's garment exports to US
  • Bangladesh faces higher US tariffs than competitors like Vietnam
  • Eight-member committee drafting agreement within 15 days
  • FTA would address tariff imbalance favoring US exports
  • Progress on FTAs with other countries remains limited

In a potentially transformative development for bilateral trade, the United States has agreed in principle to pursue a Free Trade Agreement (FTA) with Bangladesh. Stakeholders anticipate that such an agreement would grant duty-free access to Bangladeshi exports, notably including its crucial readymade garments (RMG) sector, thereby providing a significant impetus to the nation's exports to the lucrative American market.

Confirming this significant step to The Business Standard (TBS), Commerce Secretary Mahbubur Rahman hailed it as "a major breakthrough for Bangladesh," adding, "The US has already requested a draft of the agreement to expedite the process."

Sources indicate that a Bangladeshi delegation engaged with officials from the United States Trade Representative (USTR) last month. The discussions centered on the potential withdrawal of additional tariffs previously imposed by the Trump administration. During these deliberations, Dhaka proposed the establishment of an FTA as a means to significantly enhance bilateral trade relations with the US.

"Bangladesh has proposed an FTA to the US on multiple occasions in the past; however, there was a lack of interest at that time. This time, they have agreed, and we are now actively preparing to commence negotiations," stated the Commerce Secretary. He further noted, "We have formed a dedicated committee to swiftly prepare a draft text of the agreement."

Demonstrating the urgency of the matter, the commerce ministry constituted an eight-member committee on 12 May tasked with drafting the proposed FTA. This committee, headed by the Additional Secretary (FTA) of the ministry, has been given a 15-day timeframe to produce the initial draft.

The United States, the world's largest economy, stands as Bangladesh's premier export destination, absorbing 17.09% of the nation's total exports and over 18% of its total garment exports. Commerce ministry data reveals that approximately 26% of Bangladesh's woven garments, 11.71% of its knitwear, and 16.12% of its home textiles find their way to the US market.

RMG industry leaders point out that Bangladesh's primary competitors in garment exports, such as Vietnam and India, have already proposed FTAs with the United States. Currently, Vietnam benefits from a significantly lower 7% duty on its garment exports to the US, while Bangladesh faces tariffs exceeding 15%.

An FTA with the United States would substantially bolster Bangladesh's competitive edge in readymade garment exports to the American market, according to former Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Anwar-ul Alam Chowdhury Parvez, speaking with TBS.

Commerce ministry sources further indicate a disparity in the current tariff structure, with Bangladeshi exports to the US facing an average 15% tariff, while imports from the US are taxed at a considerably lower 6.1%. Notably, key import items like raw cotton and scrap iron attract duties of 0% and 1%, respectively.

Prior to 2013, Bangladesh enjoyed duty-free access for 97% of its exports to the US, with the notable exception of ready-made garments, which continue to be subject to a 15.5% tariff.

Adding complexity to the situation, the US, during the latter part of the Trump administration, proposed an additional 37% reciprocal tariff on Bangladeshi goods. This proposal is currently suspended for three months at Dhaka's request.

Anwar-ul Alam Chowdhury Parvez, who also serves as the president of the Bangladesh Chamber of Industries, highlighted that Bangladesh imports essential commodities such as cotton, scrap metal, soybeans, and other agricultural products from the US, the majority of which enter the country either duty-free or with minimal tariffs. "Therefore," he asserted, "signing an FTA with the US would likely have a limited negative impact on Bangladesh's revenue collection."

Dr. Mostafa Abid Khan, a former member of the Bangladesh Trade and Tariff Commission, viewed the potential FTA positively. However, he cautioned TBS that to fully capitalise on its benefits, Bangladesh would need to make strides in improving intellectual property rights, labor standards, environmental regulations, and the overall business environment.

In the last fiscal year, Bangladesh's exports to the United States amounted to $7.60 billion. In the first ten months (July to April) of the current fiscal year, exports to the US have already reached $7.19 billion, constituting 17.87% of the total exports during that period. Conversely, Bangladesh imported goods worth Tk28,144 crore from the US in the last fiscal year, with imports in the first nine months of the current fiscal year totaling Tk22,168 crore.

Bangladesh seeks balanced trade deal

Commerce ministry officials disclosed that a stakeholder meeting, chaired by the commerce secretary, convened on 13th May. The agenda included discussions on potentially granting duty-free benefits to 100 US products as a measure to avert the proposed reciprocal tariff, alongside strategising the initiative and process for signing the FTA.

Participants at the meeting noted that under World Trade Organization (WTO) rules, extending Most Favored Nation (MFN) status with duty-free access to these 100 US products would automatically extend the same benefits to all other WTO member countries. Concerns were raised that if US goods lack competitiveness compared to products from other nations, Bangladesh's private sector imports from the US might not see a significant increase.

Consequently, a proposal emerged advocating for Bangladesh to negotiate an FTA. This would involve exchanging duty-free access for select US products in return for guaranteed duty-free benefits on a broader range of Bangladeshi exports, including the vital ready-made garment sector and other products.

Md Hafizur Rahman, administrator of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), who attended the meeting, suggested that until an FTA is finalised, the existing Trade and Investment Cooperation Framework Agreement (Ticfa) could be utilised to grant duty-free access to the 100 US products. "In return," he stated to TBS, "Bangladesh will request the US to reduce existing tariffs on Bangladeshi exports."

Limited progress in FTA negotiations beyond Japan

Despite concerted efforts to secure FTAs with various nations in anticipation of Bangladesh's graduation from Least Developed Country (LDC) status, progress has been limited, with the Economic Partnership Agreement (EPA) with Japan being the primary success. The fifth round of discussions with Japan concluded in Tokyo earlier this month.

Negotiations for a Preferential Trade Agreement (PTA) with Indonesia have stalled after the fourth round nearly a year ago, primarily due to a mutual reluctance to grant duty-free access for each other's garment industries. Similarly, talks with Sri Lanka collapsed at the final stage due to the same sticking point. Bangladesh has held a preliminary round of FTA discussions with Singapore.

Furthermore, since the change in government, neither Bangladesh nor India has shown enthusiasm for initiating negotiations on a Comprehensive Economic Partnership Agreement (Cepa). Talks with China, initially slated to commence last year, have also failed to materialise.

Following the transition of power, Bangladesh expressed interest in joining the China-led Regional Comprehensive Economic Partnership (RCEP) and ASEAN but has yet to receive a formal response. Meanwhile, the interim government has reportedly taken steps to initiate Cepa negotiations with the United Arab Emirates.

 

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He said his company was also interested in investing in real estate, especially in low-cost social housing, aerospace and defence sectors.

 

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Highlight:
  • US proposal lacks standard legal language found in bilateral trade deals
  • US proposes that Bangladesh adopt US-imposed sanctions, tariff increases on third countries
  • Dhaka objects legally adopting another nation's domestic laws for international trade practices
  • US also wants Bangladesh to not offer lower tariffs to any other country for products granted concessions to US

As the deadline for a reciprocal trade agreement approaches, Bangladesh and the United States remain divided over key terms, with Dhaka rejecting provisions it argues contravene international trade rules while pledging to continue negotiations.

The disagreement was laid bare during a high-level meeting in Washington on 26 June, where Bangladesh, represented by interim National Security Adviser Khalilur Rahman, presented counter-proposals in response to the draft agreement floated by the United States Trade Representative (USTR).

According to sources, the USTR rejected Bangladesh's proposals.

Dhaka has since requested a detailed list of US products that would receive duty-free access under the agreement and plans to demand similar benefits for Bangladeshi exports. The US has yet to share the requested tariff schedule.

Commerce Secretary Mahbubur Rahman declined to comment on the specifics but confirmed negotiations were ongoing.

"We are very much on track. If the US seeks concessions from us, we'll ask for the same. We'll keep negotiating until the end to reach a solution," he told The Business Standard yesterday.

A follow-up meeting is scheduled for 3 July. Commerce Adviser Sk Bashiruddin Ahmed is expected to join Khalilur Rahman in Washington, where discussions on the agreement's tariff schedules and terms will continue.

In a recent interview with Fox News, US President Donald Trump said reciprocal tariffs would take effect from 9 July, with countries soon receiving formal notices detailing the specific rates.

Bangladesh is facing a 37% tariff under the proposed framework.

Dhaka's key objections

Sources familiar with the negotiations said the US proposal lacks standard legal language typically found in bilateral trade agreements.

This omission is a major reason why no country has signed such a deal with the US over the past three months, they said.

The proposal includes clauses that would compel Bangladesh to adopt US-imposed sanctions and tariff increases on third countries.

Dhaka has expressed objections, saying it cannot legally adopt another nation's domestic laws as binding for its international trade practices.

Another contentious clause prevents Bangladesh from offering lower tariffs to any other country for products already granted concessions to the US.

Officials argue this breaches the World Trade Organization's Most-Favoured Nation principle, which requires equal treatment for all trading partners.

A senior policymaker, requesting anonymity, said, "If US buyers are willing to pay double for a product worth Tk100, we can certainly export. But even if exports suffer, we must not strike a deal by selling our dignity."

No rivals ahead yet

Officials say Bangladesh has reason to believe the US is unlikely to finalise a reciprocal tariff deal with any country before the 9 July deadline.

An Indian delegation is currently negotiating in Washington but has not reached a settlement, despite India's experience in signing trade pacts with 27 nations.

Trump has already imposed a 27% reciprocal tariff on India. However, officials noted that India is not a direct rival in the US apparel market, as it exports more textiles and fabrics, while Bangladesh focuses on ready-made garments.

Vietnam has also made limited progress. Accepting the US clause restricting tariff concessions may be particularly difficult for Hanoi, given its free trade agreement with the European Union.

According to officials, Bangladesh's primary concern is ensuring it does not face higher tariffs than its competitors. As no breakthroughs have been reported in US negotiations with Vietnam or China, Dhaka is finding some relief.

Currently, the average US tariff stands at 37% for Bangladeshi goods, 46% for Vietnamese products, and even higher for Chinese exports.

If Trump's reciprocal model is uniformly applied, policymakers believe Bangladesh will not be at a competitive disadvantage.

 

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