Bangladesh signs US wheat-import deal in bid to curb tariff pressure
Chad Ward harvests winter wheat in a John Deere combine near Skedee, Oklahoma, US on Jun 13, 2024. (File photo: REUTERS/Nick Oxford)
DHAKA: Bangladesh signed a deal on Sunday (Jul 20) to import 700,000 tonnes of wheat annually from the United States over the next five years, in a move aimed at securing tariff relief from the Trump administration amid growing trade tensions, officials said.
The agreement – formalised through a memorandum of understanding inked in Dhaka between the Ministry of Food and trade group US Wheat Associates – comes at a critical moment, with Washington set to impose a 35 per cent tariff on Bangladeshi exports from Aug 1.
Officials in Dhaka hope the pact will help narrow Bangladesh’s US$6 billion trade deficit with the US and pave the way for more-favourable treatment of key export items, particularly garments, which dominate shipments to the United States.
Bangladesh's de facto food minister, Ali Imam Majumder, said at the signing ceremony that the agreement would not only ensure a steady supply of high-quality wheat at competitive prices but also strengthen trade ties between the two nations.
“This step reflects our willingness to build mutual trust and deepen economic cooperation with the United States,” he said.
The US tariff hike has rattled Bangladesh’s export sector, especially the ready-made garments industry, which fears losing competitiveness in one of its largest markets.
The wheat initiative is widely seen as part of a broader diplomatic and trade strategy to soften Washington’s stance and open the door for further negotiations.
Officials from the Ministry of Commerce said talks are ongoing with US counterparts in an effort to lower the duty, arguing that such high tariffs could significantly undermine Bangladesh’s competitiveness in the American market.
Bangladesh imports around 7 million tonnes of wheat each year, with the bulk sourced from the Black Sea region due to its lower cost. Smaller volumes of higher-quality wheat, including some from the United States, are also imported for blending.
