Bangladesh bound by 131 obligations, United States by only 6
The trade agreement between Bangladesh and the United States places obligations overwhelmingly on Bangladesh, raising concerns that the deal is one-sided. In contrast, the United States appears to have far fewer binding commitments.
In legal terms, the word “shall” indicates a mandatory obligation, while “will” suggests a more discretionary action. In the 32-page agreement, “shall” is used 179 times, compared to just three instances of “will.” Notably, “Bangladesh shall” appears 131 times, whereas “US shall” is used only six times.
The Agreement on Reciprocal Trade (ART) was signed on 9 February, just three days before Bangladesh’s national parliamentary election. Shortly afterward, on 20 February, the US Supreme Court annulled the imposition of reciprocal tariffs.
The agreement has sparked widespread criticism within Bangladesh. In parliament, MP Rumeen Farhana called for its cancellation, while various political parties and organizations have echoed similar demands. Economists have suggested further negotiations with the United States to reach a more balanced outcome.
Although the agreement has not yet come into force, Bangladesh has already started signing deals to import various US goods under its provisions, prompting further questions.
Key Provisions of the Agreement
The main text consists of six articles, with detailed implementation guidelines included in annexes that form an integral part of the agreement.
Tariffs and quotas:
Bangladesh is required to impose fixed tariffs on US goods and is prohibited from applying quotas. The United States will also impose tariffs on Bangladeshi goods at specified rates.
Non-tariff barriers:
Bangladesh cannot introduce regulations—such as licensing, inspections, or documentation requirements—that restrict trade beyond tariffs. US-certified or internationally compliant products must be allowed entry without additional conditions.
Agriculture and standards:
US agricultural products are granted priority market access. Any restrictions must be based on scientific risk assessments, not trade barriers. Bangladesh cannot set standards that disadvantage US products.
Intellectual property and services:
Bangladesh must enforce strong intellectual property protections, including online enforcement. It cannot impose rules that disadvantage US service providers and must ensure transparency in regulations.
Labor and environment:
The agreement bans imports produced through forced or child labor and requires environmental safeguards.
Taxation and border measures:
Bangladesh must align with US border-related measures and cannot challenge US export tax incentives at the World Trade Organization. It also cannot impose discriminatory VAT policies against US firms.
Digital Trade and Technology
Bangladesh is barred from imposing discriminatory taxes on US digital services and must ensure free cross-border data flow. It must also cooperate on cybersecurity.
If Bangladesh signs a digital trade deal with another country that harms US interests, the United States can seek consultations and, if unresolved, terminate the agreement and reimpose tariffs.
Bangladesh is also prohibited from requiring US firms to transfer technology, source code, or proprietary business information as a condition of market access.
Economic and National Security
Bangladesh must support US trade measures taken for national or economic security reasons. It is also required to align export controls with US standards and prevent violations of US sanctions.
The agreement further restricts Bangladesh from purchasing nuclear materials from countries deemed contrary to US interests, unless no alternative sources are available.
Commercial Opportunities
Bangladesh must facilitate US investment in key sectors such as energy, infrastructure, and telecommunications, offering treatment equal to domestic investors.
State-owned enterprises in Bangladesh must operate on market principles and avoid preferential treatment or subsidies that could distort trade. If requested, Bangladesh must disclose detailed information about subsidies.
Textiles and Apparel
The United States has offered limited benefits, allowing certain Bangladeshi textile and garment exports to enter at reduced or zero tariffs—but subject to quotas tied to the use of US raw materials.
Implementation and Enforcement
The agreement allows for amendments with mutual consent but prevents any reduction in previously granted benefits. The United States may reimpose tariffs if Bangladesh fails to comply.
Either country can terminate the agreement with 60 days’ written notice.
Annex and Tariff Structure
The annex outlines Bangladesh’s tariff reductions across five categories, ranging from immediate zero tariffs to gradual reductions over 5–10 years. Some products remain unchanged under existing Most Favored Nation (MFN) rates.
For Bangladeshi exports, US tariff concessions apply only to listed products. Others may face tariffs of up to 19 percent in addition to standard rates.
Specific Commitments
Bangladesh must accept US regulatory standards in sectors such as:
1. Medical devices and pharmaceuticals: FDA approvals will be sufficient for market entry.
2. Motor vehicles: US safety and emissions standards must be accepted without additional approvals.
3. Agricultural products: US certifications must be recognized.
4. Biotechnology: Bangladesh must allow certain US biotech products within two years without extra restrictions.
5. Poultry and disease control: Import restrictions must be limited geographically and follow international standards.
6. Halal certification: US-issued certifications must be accepted if they meet Bangladeshi requirements.
Overall, critics argue that the agreement heavily favors the United States, placing extensive obligations on Bangladesh while offering comparatively limited concessions in return.
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