Bangladesh set for ‘secret’ US tariff deal ahead of elections — move after India’s pact?

Bangladesh’s interim government plans to sign a secret tariff agreement with the United States on February 9, just three days before the country’s parliamentary elections and about a week after India secured a trade with the US. The move has sparked concerns among business leaders and analysts due to its timing and lack of transparency, as the contents remain confidential under a non-disclosure agreement signed between the two nations.Concerns have been raised over plans to sign the agreement in the final days of the government’s tenure, primarily because details of the draft remain undisclosed, as reported by Bangladesh Daily Prothom Alo. Bangladesh has already signed a non-disclosure agreement (NDA) with the US, keeping all aspects of the proposed deal confidential.

Thus, if the agreement is signed on February 9, it will come just days before the interim government’s term is set to end, with voting for the 13th parliamentary election. The timing also means, it will be signed a week after US president Donald Trump announced it’s trade deal with India, leading to tariff reduction to 18 per cent.Details of the newly announced India–US trade agreement are expected to become clearer in the coming days, with Union commerce and industry minister Piyush Goyal confirming that the first tranche of the bilateral pact is ready. A joint statement is likely within the next four to five days, after which the United States is expected to issue an executive order reducing tariffs to 18 per cent. The formal legal agreement is expected to be signed around mid-March.Read more: India-US trade deal – Joint statement in next 4–5 days; agreement likely by mid-March, says Piyush GoyalThe business leaders are worried about potential negative impacts on various sectors and question why such a significant decision is being made by a temporary government.BGMEA senior vice president Inamul Haque Khan expressed surprise at the timing, saying, “I still believe this should have been done after the election, because it carries major implications.” “Based on the target for purchases from the US, it can be expected that the reciprocal tariff rate will come down to 15 per cent (currently 20 per cent). I had heard that national security adviser Khalilur Rahman had streamlined this. I was surprised to see the signing of the agreement come just three days before the election. I still believe this should have been done after the election, because it carries major implications,” he added.Similarly, DCCI president Taskeen Ahmed added that the interim government could have avoided this rushed decision.The negotiations and concerns linger from April 2025, when US President Donald Trump announced reciprocal tariffs on 100 countries, initially setting Bangladesh’s rate at 37 per cent. Through negotiations, this was eventually reduced to 20 per cent in August last year.The US included various conditions in the agreement. These include requiring Bangladesh to reduce Chinese imports, increase American military equipment purchases, and accept US standards without additional inspections. The deal also aims to boost US agricultural exports to Bangladesh and ease access for American automobiles.Commerce secretary Mahbubur Rahman confirmed the signing date and but will not travel to Washington in-person. Instead, a five-member delegation from Bangladesh will travel to Washington for the event, according to a Bangladesh government order (GO) issued by their ministry of commerce on February 3.The delegation will be led by Khadija Nazneen, Additional Secretary at the Ministry of Commerce and head of the World Trade Organization (WTO) Wing. The other members are Joint Secretaries Firoz Uddin Ahmed and Mustafizur Rahman, Senior Assistant Secretary Sheikh Shamsul Arefin, and National Board of Revenue (NBR) Commissioner Rais Uddin Khan. As per the GO, the delegation is scheduled to leave Dhaka on Friday, February 6, and return on or around February 10.The interim government has recently made other significant long-term decisions, including port management agreements with international companies. CPD distinguished fellow Debapriya Bhattacharya criticized the lack of transparency, stating, “This is not just a tariff agreement with the US but one with long-term implications. It must be viewed holistically, including its geopolitical and political dimensions.“Critics argue that while keeping such agreements confidential is common practice, they are typically signed by elected governments accountable to parliament and citizens. The rushed timing and secretive nature of the agreement have led to speculation about whether it unnecessarily constrains the incoming elected government’s options.