Major parties consulted before signing trade deal with US

FM rebuts criticisms, says agreement open to rethink

FE REPORT | Published: March 04, 2026 23:13:58

Two major political parties were consulted before the signing of the trade agreement close to the polls and they consented, says Foreign Minister Dr Khalilur Rahman in a rebuttal to mounting criticisms.
Speaking to reporters at the foreign ministry Wednesday-when a US minister is in Dhaka--Rahman said the deal is open to review as it holds both entry and exit clauses for both parties.
Further explaining to underpin his stance that the deal was not hasty, he said the US trade representative had held discussions with leaders of the main political parties before the polls on the cusp of transition from the post-uprising interim regime.
"So it is not the case that we did this in the dark," Rahman said, pushing back against allegations that the deal had been rushed through without political consensus.
Rahman, who was the National Security Adviser of the Yunus-led interim govern, played a direct role in the negotiations of the deal, which was signed at the fag-end of the previous government's tenure.
Dr Khalilur led several rounds of talks and coordinated with the commerce ministry and Bangladesh's mission in Washington as negotiations intensified following the imposition of reciprocal tariffs in April 2025.
Responding to a question, Dr Khalilur, who has been appointed foreign minister of the present government, sought to dispel what he described as public confusion about the agreement's structure.
He notes that it includes both an entry clause and an exit clause. Under the entry clause, the arrangement will not take effect unless formal notification is issued. "We have not yet moved to notification," he said, adding that the government retains the authority to review the deal before activating it.
The exit clause allows either party to withdraw on 60 days' notice. "It is not as though we pushed Bangladesh into a closed room," Rahman said.
He also urged critics to assess the agreement in comparative terms rather than in isolation. Countries such as Vietnam, Cambodia and Malaysia had negotiated similar arrangements with Washington, he said as for an example, arguing that the language across these agreements was "more or less uniform".
Rahman dismisses suggestions that Bangladesh has been caught in the middle of strategic competition between the United States and China. According to him, discussions began in February 2025 when Dhaka raised concerns with Washington over its widening trade deficit. The US introduced reciprocal tariffs in April, after which negotiations continued through July.
"Not only with us, but with many countries," Rahman said about the modus operandi of deal-making. Following the talks, Bangladesh secured a 20-percent tariff rate on its exports to the US.
Two issues required extended negotiation: Dhaka's request for zero reciprocal tariffs on garments made from American cotton or US-origin man-made fibre, and technical discussions on rules of origin. "These are in our interest," the minister said, indicating that his negotiating team pressed Washington for flexibility on both counts.
According to Rahman, the agreement was finalised on July 31, and Bangladesh began receiving the 20-percent tariff rate on August 1st. He rejected claims that the deal had been concluded hastily in the final days before the election, describing such assertions as "not correct".
Despite the government's defence, the trade deal has drawn criticism from opposition politicians, trade analysts and sections of the business community.
Some economists have questioned whether the agreement offers sufficient reciprocal benefits or policy space, warning that commitments related to tariffs, market access or regulatory standards could constrain domestic industrial policy. Others have expressed concern that the deal's timing - close to the election period - may have limited broader parliamentary debate.
There are also geopolitical concerns. While the government denies being drawn into US-China rivalry, analysts note that Bangladesh's economy is closely tied to both powers: the US as a key export destination and China as a major source of infrastructure financing and industrial inputs. Balancing those relationships, they argue, will require careful diplomacy in the months ahead.
mirmostafiz@yahoo.com