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Bangladesh Signals Plan to Revisit ‘Unfavorable’ US Trade Deal

by Editor Asiatoday
February 14, 2026
in News
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Bangladesh Tightens the Screws on India

FILE PHOTO: Bangladeshi people raise national flag to reject entry of Indian citizens.

ASIATODAY.ID, DHAKA – Bangladesh’s incoming government has sent a strong signal to Washington following its sweeping election win.

After securing a two-thirds majority in parliament, allies of Tarique Rahman say Dhaka may renegotiate parts of its trade agreement with the United States that are deemed unfavorable to national interests.

Ziauddin Hyder, an adviser to the BNP chairman, stated that while beneficial aspects of the agreement would be maintained, clauses seen as disadvantageous would be reviewed to strengthen Bangladesh’s economic position.

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“There are some deals that are not in favor of Bangladesh. We will ensure renegotiation to expand and improve our trade relationship,” Hyder said.

Sensitive Clauses: Nuclear Restrictions and Geopolitics

The US–Bangladesh trade deal, announced just days before the national election, has drawn scrutiny over several provisions. One controversial clause reportedly prohibits Dhaka from purchasing nuclear reactors, fuel rods, or enriched uranium from countries that could “jeopardize essential US interests.”

This condition could directly affect the Rooppur Nuclear Power Plant, a 2,400 MW facility in western Bangladesh being built by Russia’s state nuclear corporation Rosatom.

Additionally, Article 4.3 of the agreement reportedly allows Washington to terminate the pact if Bangladesh signs a trade deal with a so-called “non-market country,” such as China or Russia.

Analysts warn that such provisions may constrain Dhaka’s strategic flexibility in foreign policy and energy cooperation.

Pressure on the Garment Sector

Beyond geopolitics, the agreement carries domestic economic implications. Bangladesh will reportedly be required to align its Export Processing Zones with national labor laws within two years — a move that could affect its crucial ready-made garment sector.

The garment industry accounts for more than 80% of the country’s export earnings, employs around four million workers, and contributes roughly 10% to GDP. The sector has already faced declining exports over the past two years.

Under the deal, Bangladeshi exports to the US would face a 19% tariff rate — slightly higher than the 18% rate secured by India in its own trade arrangement with Washington.

Balancing Global Powers

Despite signaling possible renegotiation, BNP officials stress that the new government aims to maintain constructive relations with all major partners.

Hyder emphasized that Bangladesh will prioritize national interests while maintaining balanced ties with regional and global powers, including India.

As the new administration prepares to take office, the potential renegotiation of the US trade deal could become an early test of its diplomatic and economic strategy — balancing market access with strategic autonomy in an increasingly polarized global landscape. (RT)

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