Trade agreement with US: Promise to buy agricultural products worth Tk42,000 crore per year

Bangladesh has signed a trade agreement with the United States to address the bilateral trade imbalance, where Bangladesh currently exports around $6 billion worth of goods to the US annually while importing only about $2 billion, resulting in a total trade volume of roughly $8 billion.

As part of the deal signed on Monday, Bangladesh has committed to importing a substantial volume of US agricultural products, with an estimated total value of $3.5 billion. Converted to Bangladeshi taka at the current exchange rate, this amounts to more than Tk42,000 crore per year. These commitments include purchasing at least 700,000 metric tonnes of wheat annually over the next five years, along with soybeans and soy products up to a maximum of $1.25 billion or 2.6 million metric tonnes in a year, as well as plans to import cotton.

In addition, Bangladesh has agreed to steps that will boost purchases of US-manufactured aircraft, energy products, and military equipment.

Biman Bangladesh Airlines, the national flag carrier, intends to acquire 14 civilian aircraft from the US-based Boeing company, with provisions kept open for additional purchases as required in the future.

The agreement also emphasises enhanced cooperation in obtaining aircraft parts and related services from the United States.

On the energy front, Bangladesh has pledged long-term initiatives to import various energy products from the US, including liquefied natural gas (LNG). This includes commitments to purchase approximately $15 billion worth of such energy products over a 15-year period, often through long-term contracts.

Furthermore, the agreement outlines efforts by Bangladesh to increase procurement of military equipment from the United States in the defense sector, while also noting that purchases of military equipment from certain other countries should be limited.