In the wake of India’s recent trade success with the United States, Bangladesh’s interim government is moving swiftly to finalize a confidential trade agreement with Washington, scheduled for signature on February 9, 2026—just three days ahead of the country’s general elections on February 12.
This will mark the first national vote since the ouster of former Prime Minister Sheikh Hasina in August 2024 amid widespread student-led protests. Hasina has since remained in exile in India. The interim administration, headed by Chief Adviser Muhammad Yunus, is expected to step down shortly after the polls, leaving the incoming elected government to handle the pact’s implementation.
Bangladesh’s Commerce Secretary Mahbubur Rahman has confirmed the February 9 signing date. The agreement follows an earlier Non-Disclosure Agreement (NDA) signed in June 2025, which has kept the specific terms under wraps. Leading Bangladeshi daily Prothom Alo reports that the deal’s details remain undisclosed, fueling concerns over transparency.
The negotiations aim to reduce US tariffs on Bangladeshi exports—currently at 20%, down from an initial 37% announced by US President Donald Trump in April 2025 and revised in August 2025—to around 15%. This comes after the US recently secured a pact with India, lowering tariffs on Indian imports to 18%.
The US seeks to address the trade imbalance, where Bangladesh exports approximately $6 billion worth of goods annually to the US while importing only $2 billion. Washington is pushing for greater market access for its products, including wheat, soybean oil, corn, cotton, military equipment, and automobiles, potentially without additional inspections. The deal is also seen as an effort to lessen Bangladesh’s economic dependence on China.
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The timing has drawn criticism from industry stakeholders. Inamul Haque Khan, senior vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), expressed surprise at the pre-election signing, noting its major implications and suggesting it should have occurred after the polls for greater clarity. Domestic traders have echoed similar worries, emphasizing the importance of transparency given the garment sector’s critical role—exports reached $38 billion in 2023—as the backbone of Bangladesh’s economy.
While Commerce Adviser Sk Bashir Uddin has assured that the agreement safeguards Bangladesh’s interests and could be publicized with US approval, the secrecy and rushed timeline continue to spark debate amid the approaching elections.