Bangladesh has entered into a new agreement with the United States to import 700,000 metric tonnes of American wheat annually over the next five years.
Signed in Dhaka, the deal aims to bolster Bangladesh’s food security while the country contends with forthcoming U.S. trade restrictions, notably a 35% tariff set to be imposed on most Bangladeshi exports from August 1.
The garments sector, which represents more than 80% of Bangladesh’s exports to the U.S., is particularly threatened by the increased duties. Officials hope that this substantial wheat import arrangement will demonstrate goodwill towards Washington and help encourage a reassessment of these tough tariffs.
The agreement is also intended to reduce Bangladesh’s $6 billion trade deficit with the U.S. by increasing imports of American products.
Ali Imam Majumder, Bangladesh’s food adviser, described the deal as an attempt to “build mutual trust and deepen economic cooperation” with the United States. While most of Bangladesh’s wheat is usually sourced from Black Sea countries, this new partnership is viewed as both an economic choice and a means to ensure consistent supply in a challenging global market.
Beyond wheat imports, Bangladesh is also exploring the purchase of U.S. aircraft and law enforcement equipment as further steps to rebalance trade relations. Despite ongoing negotiations, it remains unclear whether the U.S. administration will reconsider its tariff measures.
Without a resolution, Bangladeshi exporters warn of threats to both jobs and national export income.