Bangladesh has signed a Memorandum of Understanding (MoU) with the United States to import 0.7 million tonnes of high-quality wheat annually from the US over the next five years at competitive prices.
This step was taken to deal with the new import taxes slapped by the Trump administration.
The deal was signed on Sunday at the Ministry of Food, according to a statement from the ministry.
Md Abul Hasanath Humayun Kabir, director general of the Food Directorate (DGoF), for Bangladesh, and Joe Sowers, vice president for South and Southeast Asia of US Wheat Associates, for the US signed the agreement on behalf of their respective countries.
At the signing ceremony, Food Adviser Ali Imam Majumdar said, "This agreement will help build trust and increase trade cooperation between Bangladesh and the US. Both countries will benefit."
US Ambassador to Bangladesh Tracey Ann Jacobson was also present at the event.
Recently, the US announced it would add a 35 per cent extra tax on Bangladeshi exports.
Trump administration has been raising taxes on imported goods from many countries under its America First campaign.
USA has targeted to minimise trade gap with the nations. The country is also reconsidering tax rates for countries which are announcing good import packages from the USA.
To reduce this trade gap, Bangladesh wants to buy more important goods, like wheat, from the US.
At the same time, the government is trying through diplomacy to reduce or avoid the high taxes placed by the Trump administration.
The Food Ministry said the new agreement will help ensure food security, better nutrition, and a steady food supply.
Bangladesh imports 6.0-7.0 million tonnes of wheat annually, mainly from Russia, Belarus, Ukraine, India and Canada.
It produces 1.0 million tonnes of the food grain domestically.
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