US Assistant Secretary of State for South and Central Asian Affairs Paul Kapur, concluded a two-day visit to Bangladesh on Thursday night, highlighting key US priorities in the country.
During his discussions, Kapur emphasised expanding market access for American businesses, enhancing cooperation on combating illegal immigration and deepening collaboration on regional security issues.
Diplomatic sources have indicated that the United States expects Bangladesh to implement the trade agreement swiftly and effectively. Additionally, Washington anticipates arrangements for the repatriation of Bangladeshi nationals deemed illegal in the U.S., once their cases are resolved in American courts. Bangladesh has given assurances to the United States on both matters.
Two days before the February 12 election, the interim government of Bangladesh signed a trade agreement with the United States. Under the agreement, a 19 percent tariff has been set for Bangladesh.
To reduce the trade deficit, Bangladesh will also take initiatives to increase purchases of U.S. civil aircraft, parts, and related services through Biman Bangladesh Airlines.
According to section 6 of the agreement, Biman Bangladesh Airlines has expressed its intention to purchase 14 Boeing aircraft, with provisions for acquiring additional aircraft in the future.
The agreement also outlines efforts by Bangladesh to increase energy imports from the U.S., including long-term contracts for liquefied natural gas (LNG). Over the next 15 years, the potential value of these energy imports is estimated at approximately $15 billion, averaging about $1 billion per year in LNG imports.
In addition, to ensure food security, Bangladesh will work to increase imports of U.S. agricultural products. This includes at least 700,000 metric tons of wheat annually over five years, up to 1.25 billion dollars (or 2.6 million metric tons) of soybeans and soybean products in one year, and cotton. The estimated value of these agricultural imports is around $3.5 billion.
According to clause 6 of the agreement, Bangladesh will take steps to increase its acquisition of military equipment from the United States while seeking to limit purchases from certain other countries. However, the agreement does not specify which countries would be subject to these restrictions.
The agreement further states that the U.S. will collaborate with Bangladesh to streamline and expand defense trade. As part of this effort, both countries are set to enter into a “customs evasion cooperation agreement.”
If Bangladesh pursues new bilateral free trade or preferential economic agreements with non-market economies—such as China, Russia, Vietnam, Belarus, and several Central Asian countries—without taking this U.S. pact into account, Washington may suspend the agreement pending further discussions. Failure to resolve such issues could lead to the reinstatement of tariffs announced on April 2, 2025.
Diplomatic sources indicate that the U.S. seeks full implementation of the agreement, though opportunities for review remain. In Bangladesh, the parliament must approve the pact before it can be enacted. While the legislature may review the agreement, raise questions, and provide opinions, the final decision generally rests with the executive branch. Agreements related to national security are presented in closed parliamentary sessions. The U.S. aims for the pact to be ratified without any obstacles.
According to sources of the Ministry of Foreign Affairs, the United States has emphasized the repatriation of Bangladeshi nationals residing in the country illegally. On Wednesday, Paul Kapur met with Bangladesh’s Foreign Minister to discuss the matter. The U.S. reportedly aims to send back approximately 5,000 Bangladeshi citizens.
Under former President Donald Trump’s immigration policies, the United States has adopted a stricter stance on illegal immigration. To date, 327 Bangladeshi nationals have been repatriated, with many reportedly returned on military aircraft in restraints.
Bangladesh has sought assurances that the repatriation process will be conducted in an orderly manner and with respect for the dignity of its citizens. The government has agreed to facilitate the return of the nationals.
