Why ‘secret’ Bangladesh-US trade deal has sparked concern

Bangladesh and the United States are rushing to sign a trade deal.

The development, which comes just days ahead of the long-awaited Bangladesh polls, is piquing the interest of political watchers. It also comes in the aftermath of India and the United States signing a free trade agreement that was announced by President Donald Trump.

Representatives of Dhaka and Washington are set to meet next week to sign the pact. However, there is much secrecy surrounding the deal.

But what do we know? Why are there concerns over it?

Let’s take a closer look:

What we know about pact

The agreement on reciprocal tariffs will be signed in Washington on February 9 (Monday). This is just three days before Bangladesh goes to the polls on February 12. According to Prothom Alo, the signing ceremony will begin on February 8. Interestingly, neither Bangladesh’s Commerce Adviser Sk Bashir Uddin nor Commerce Secretary Mahbubur Rahman will be heading to the US to attend the event in person. Sources told the newspaper Uddin already put pen to paper in Dhaka and the agreement will be signed in the US by US Trade Representative (USTR) Jamieson Greer.

Instead, a five-member delegation from Bangladesh will be tasked with taking the copy to Washington and attending the event. According to a government order issued on February 3, the delegation will be headed by Khadija Nazneen, Additional Secretary at the Ministry of Commerce and Head of the World Trade Organization (WTO) Wing. Joint Secretaries Firoz Uddin Ahmed and Mustafizur Rahman, Senior Assistant Secretary Sheikh Shamsul Arefin, and National Board of Revenue (NBR) Commissioner Rais Uddin Khan comprise the rest of the team. The delegation will leave Dhaka today (February 6) and return home on February 10.

Not much is known about the terms of the deal. However, it has been reported that Washington wants Dhaka to bring down imports from China and increase military imports from the US. The US also wants free access to Bangladeshi markets and that Dhaka would need to acquiesce to US standards and certifications without protest. The United States also wants no inspections regarding the import of US vehicles and parts in Dhaka.

The Trump administration had levied a 37 per cent tariff on Bangladesh in April 2025. That number was brought down to 35 per cent and then finally 20 per cent in August. The deal is expected to bring the tariffs down further to 15 per cent.

There is also the India component to consider. Dhaka has pushed to finalise the pact in the aftermath of the India-US trade agreement that brought levies on Indian goods down to 18 per cent. Bangladesh’s economy is heavily dependent on textiles and ready-made garments, which comprise 90 per cent of its exports to the US. Bangladesh sends around $7 to $8.4 billion (around Rs 58,100 crore to Rs 69,700 crore) of clothes and textiles to the US every year. Dhaka is desperate to keep New Delhi from eating into its market share because millions of jobs could be put at risk if it does not get a better rate than India.

Bangladesh’s garment sector employs between four and five million, predominantly women. It comprises over 80 per cent of Bangladesh’s income from exports. It also accounts for nearly 20 per cent of the country’s economy.

Why there are concerns over it

Because the Muhammad Yunus government signed a formal Non-Disclosure Agreement with the US. This means all the tariff and trade negotiations will be kept secret from the public. No draft agreement is available or has been given to Parliament or key stakeholders within Bangladesh industries, as per Prothom Alo.

Given that the current regime is only an interim and unelected government, it is only supposed to act as a caretaker until the next government takes power. The Yunus government, being unelected, has no mandate from the people to make such important decisions, which could impact the future direction of the country, on their behalf. It raises concerns among many that the Yunus regime is acting outside its remit.

Indeed, Bangladesh economist Anu Muhammad in a post on Facebook raised just such questions. He queried the “urgency to lease a port, import arms, and sign subordination agreements with the United States just a few days before the national election.” He claimed this was being done in a “completely non-transparent, illogical, and irregular manner” and that foreign “lobbyists” who had been implanted within the Yunus administration as advisers were “desperate to make these agreements.”

“Yunus has actually appointed some foreign companies and foreign state lobbyists in this government under the guise of advisers and special assistants. These foreign lobbyists appointed as chief advisers are jumping around to make these deals from within the government,” he wrote on Facebook.

“Do they have a commitment or an obligation to someone that they must do this contract? Otherwise, why are they pushing the country into a terrible, dangerous situation?”

“Had the tariff agreement been signed after the election, political parties could have discussed it. It is also worth considering whether the hands of the incoming elected government are being tied,” distinguished fellow of Bangladeshi think-tank, Centre for Policy Dialogue (CPD), Debapriya Bhattacharya, was quoted as saying by the newspaper.

Meanwhile, industry figures have also been left in the dark.

Bangladesh Garment Manufacturers and Exporters Association senior vice-president Inamul Haque Khan told the newspaper he found the events disturbing.

“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 said.

But Sk Bashir Uddin, Bangladesh’s commerce adviser last year, insisted: “There will be nothing in the agreement that goes against the country’s interests. Subject to US consent, it will also be made public.”

Interestingly, the development comes amid reports that American diplomats are engaging with the Islamist Jamaat-e-Islami party, which could likely emerge as a major player after the election. There have been allegations that Yunus was supported by Islamist parties to come to power as the head of the interim Bangladesh government.

Meanwhile, Sajeeb Wazed, the son of toppled Bangladesh leader Sheikh Hasina, last week claimed that Bangladesh was heading into a “sham” election designed to install a weak government loyal to foreign interests. He claimed that the Yunus regime was backed by Islamists and accused the government of acting in a “completely non-transparent” manner.

With inputs from agencies