Bangladesh must reevaluate its global alliances and economic policies as it strives to transform into a developed economy by 2041. The United States, as Bangladesh's largest export destination and a global superpower, plays a crucial role in this evolution. A strategic reconfiguration of US-Bangladesh trade relations, starting with a zero-tariff policy on US imports into Bangladesh, can yield mutual economic benefits.
Furthermore, Bangladesh should formally seek American assistance in recovering illicitly transferred wealth by corrupt Bangladeshi individuals, including leaders from the ruling Awami League (AL), and request US support in acquiring military and agricultural heavy machinery. At the same time, it is essential to address the impact of the recently reinstated Trump-era tariff of 37% on Bangladeshi garments. This move threatens the backbone of Bangladesh's economy and must be counterbalanced through diplomatic engagement.
Agricultural products
Bangladesh faces chronic challenges in agricultural productivity due to limited arable land, outdated tools, and climate vulnerabilities. In contrast, the US is a global leader in agricultural exports and mechanized farming. In 2022 alone, US agricultural exports totaled $196 billion (USDA, 2023). Eliminating tariffs on US agricultural products such as soybeans, wheat, corn, and dairy will allow Bangladesh to diversify its food supply sources and stabilize domestic prices.
Bangladesh should seek preferential access to advanced US agricultural machinery -- tractors, irrigation systems, harvesters, and precision-farming tools -- under concessional financing or surplus donation programs. These technologies will enhance yields, mitigate food insecurity, and support the "smart agriculture" goals of Bangladesh’s Delta Plan 2100.
Industrial machinery
With a vision to become an export-led manufacturing hub, Bangladesh must upgrade its industrial infrastructure. USexports of industrial machinery exceeded $95bn in 2022 (US Census Bureau, 2023). However, high import tariffs deter Bangladeshi SMEs from accessing this essential technology.
A zero-tariff regime would lower industrialists' capital costs, create opportunities for US-Bangladesh joint ventures, and enhance knowledge transfer in the energy, transportation, and heavy engineering sectors. Furthermore, Bangladesh can strategically position itself as a regional assembly hub for American manufacturers targeting South and Southeast Asia.
Information technology
US companies dominate the global tech landscape, and their involvement in Bangladesh’s digital transformation can be revolutionary. With the local ICT sector contributing 1.28% to GDP and aiming for $5bn in exports by 2025 (BASIS, 2023), affordable access to US hardware and software is essential.
Waiving tariffs on US digital goods and services will accelerate the adoption of automation, cloud computing, and data analytics across Bangladeshi industries. In return, Bangladesh can provide tech parks and tax incentives for American firms establishing operations in Dhaka and Chittagong.
Healthcare and pharmaceuticals
Bangladesh’s public healthcare infrastructure remains under-resourced. US medical equipment exports exceeded $47bn in 2022 (USITC, 2023). Zero-tariff access to these tools will lower costs and improve service delivery across rural and urban health centers.
Simultaneously, Bangladesh must invite USpharmaceutical companies to establish joint manufacturing ventures for biologics and specialty drugs. Such partnerships will elevate healthcare quality, reduce dependency on imports from less-regulated markets, and open doors for Bangladesh to become a pharma export hub.
Asset recovery
One of the gravest issues facing Bangladesh’s economy is illicit capital flight. Transparency International (2023) and the Bangladesh Financial Intelligence Unit have reported billions of dollars illegally transferred to foreign accounts and real estate -- especially in the US -- by corrupt officials, including members of the AL.
Bangladesh must formally request cooperation from the US Department of Justice (DOJ), FinCEN, and the Treasury Department under the Kleptocracy Asset Recovery Initiative to trace and repatriate these assets. These funds could be reinvested in development programs such as infrastructure, education, and healthcare, aligning with US goals for regional stability and anti-corruption.
Military cooperation and dual-use technologies
Bangladesh has been a responsible player in UN peacekeeping and regional stability. Bangladesh needs access to US defense logistics, naval equipment, drones, and non-lethal tactical gear to build a modern and responsive military.
A zero-tariff approach to US dual-use and defense technologies, facilitated through the Foreign Military Sales (FMS) program, would deepen trust and cooperation. Bangladesh could also serve as a logistics base for humanitarian assistance and disaster response in South Asia.
The Trump tariff and the RMG crisis
Bangladesh’s apparel sector accounts for over 80% of its export earnings and employs nearly 4 million workers, primarily women. The reinstatement of the Trump-era 37% tariff on Bangladeshi garments threatens to severely disrupt this vital industry, increase unemployment, and destabilize economic progress.
This punitive tariff, reintroduced under the guise of national security or trade imbalance, undermines the spirit of bilateral cooperation. Bangladesh must engage diplomatically with the US Trade Representative’s office and congressional allies to reverse or at least mitigate this tariff. A commitment to zero tariffs on US imports would provide Bangladesh with leverage to negotiate tariff exemaptions or quota adjustments in return.
Geopolitical synergy and shared democratic values
Bangladesh’s commitment to democracy, secularism, and regional peace aligns with the US Indo-Pacific Strategy (The White House, 2022). A comprehensive zero-tariff policy, along with anti-corruption measures, technology exchange, security enhancements, and trade cooperation, would significantly elevate Bangladesh's strategic importance to Washington.
Such a relationship would enable Bangladesh to gain broader US support at the WTO, IMF, and World Bank while opening channels for educational exchange, defense collaboration, and high-level diplomatic summits.
The path to a resilient, modern, and globally respected Bangladesh requires bold reforms and visionary alliances. Eliminating tariffs on US imports is more than a policy shift-- it is a strategic invitation to the United States for deeper cooperation. In return, Bangladesh should leverage this goodwill to demand asset recovery, secure developmental hardware, and counterbalance unjust trade policies like the reinstated Trump tariff.
This multidimensional approach will stimulate the Bangladeshi economy and establish the country as a central pillar in America’s South Asian strategy. Together, the US and Bangladesh can craft a partnership that promotes transparency, prosperity, and peace in the Indo-Pacific and beyond.
Mazher Mir is a human rights advocate.
