DHAKA: Bangladesh has finalised an agreement to import 700,000 tonnes of wheat annually from the United States for the next five years, a strategic move to ease trade tensions ahead of impending US tariffs.
The deal, formalised through a memorandum of understanding between Bangladesh’s Ministry of Food and US Wheat Associates, seeks to stabilise trade relations as Washington prepares to impose a 35% tariff on Bangladeshi exports starting August 1.
Officials in Dhaka view the pact as a crucial step to narrow Bangladesh’s $6 billion trade deficit with the US and secure better terms for key exports, particularly garments, which dominate shipments to the American market.
“This agreement ensures a steady supply of high-quality wheat at competitive prices while reinforcing economic cooperation,“ said Ali Imam Majumder, Bangladesh’s de facto food minister, during the signing ceremony.
The looming US tariff hike has raised concerns among Bangladeshi exporters, especially in the ready-made garments sector, which fears losing market share in one of its largest destinations.
The wheat deal is seen as part of a broader diplomatic effort to soften Washington’s stance and create room for further negotiations.
Commerce Ministry officials confirmed ongoing discussions with US counterparts to lower the proposed duty, warning that high tariffs could severely impact Bangladesh’s competitiveness.
Currently, Bangladesh imports around 7 million tonnes of wheat yearly, primarily from the Black Sea region, supplemented by smaller quantities of premium-grade US wheat for blending. – Reuters
