Another objective of the Bangladeshi government is to reduce the trade imbalance between the United States and Bangladesh. To close this gap and increase U.S. exports to Bangladesh, the Ministry of Commerce is holding several meetings with U.S. exporting organizations and institutions. As part of this, Bangladesh will import wheat from the United States for the first time, previously imported as U.S. aid, according to Ministry of Food and Ministry of Commerce sources.

Today, Sunday, the two nations will sign a memorandum of understanding (MoU) to import wheat from the United States. A senior Food Directorate official will sign the Memorandum of Understanding on

According to sources, the government has made a decision to import three lakh tonnes of wheat directly from the US in order to mitigate the trade deficit. This wheat will be sourced from the United States, even if it incurs an additional cost of 20 to 25 US dollars per ton. However, this time, the Memorandum of Understanding (MOU) is for 220,000 tons instead of 300,000 tons. Each shipment will consist of 110,000 tons of wheat.

Trade Advisor Sheikh Bashiruddin mentioned that discussions are ongoing with various institutions and organizations in the United States, focusing on three main objectives. These objectives include enhancing bilateral trade between Bangladesh and the US, generating public support (advocacy) for Bangladesh, and addressing the US trade deficit.

The final meeting of the week-long discussions is scheduled for Tuesday, July 22, with the American Apparel and Footwear Association (AAFA), which represents companies that import ready-made garments and footwear from Bangladesh.

The trade adviser has already conducted online meetings with US companies such as Chevron, Accelerate Energy, US Wheat Associates, the US Soybean Export Council (USSEC), and the US Cotton Association.

Two rounds of discussions have taken place regarding the reduction of the 35 percent countervailing duty imposed by the US on Bangladeshi products, but no resolution has been reached thus far. As per a letter from US President Donald Trump to Chief Adviser Professor Muhammad Yunus dated July 8, a new rate will be added to the existing 15 percent on August 1, raising the total tariff to 50 percent.

A team led by Trade Adviser Sheikh Bashiruddin is preparing to travel to the US for another round of discussions aimed at reducing this rate. The Trade Adviser confirmed their plans to go, but as of Saturday, no specific date for the third round of talks had been communicated by the US.

In response to inquiries, Commerce Secretary Mahbubur Rahman stated that a request will be sent to the United States via email on Sunday to obtain the date for the third round of discussions regarding the reduction of the countervailing duty rate.

The trade gap between Bangladesh and the US has consistently favored Bangladesh, leading to discontent within the Donald Trump administration. As reported by the National Board of Revenue (NBR), Bangladesh’s exports to the United States reached US$8.76 billion in the fiscal year 2024-25, which concluded in June. This marks an increase from US$7.68 billion in the previous fiscal year, 2023-24. Conversely, Bangladesh imported goods worth US$2.5 billion from the US during the fiscal year 2024-25, a slight decrease from US$2.62 billion in 2023-24. The primary import from the United States is scrap iron or iron pieces, while ready-made garments represent the largest export to the US.

Sources from the Commerce Ministry indicate that Bangladesh plans to narrow the trade gap by boosting imports of aircraft parts, edible oil, cotton, liquefied natural gas (LNG), and wheat, which will also benefit the US. To address the trade deficit with the US, Bangladesh has already set the tariff rate at zero for 190 products. An additional 100 products have been included in this category as part of the budget preparation for the upcoming fiscal year 2025-26. However, this tariff benefit will extend not only to the US but also to other nations.

According to World Trade Organization (WTO) regulations, tariffs cannot be selectively reduced for specific products from a particular country; they must be lowered across the board for all products. If tariffs are reduced for only one product from one country, it opens the door for complaints from other countries to the WTO.

Khandaker Golam Moazzem, research director at the Center for Policy Dialogue (CPD), a private research organization, expressed a differing opinion: “The trade strategy should not favor one country. Other partners also play a significant role in exports. The WTO’s performance in this context is disappointing, especially considering the trade pressures from additional tariffs imposed on developing countries.”