World
Bangladesh to review trade deal with US inked by interim government
A top aide has said Dhaka is reviewing the pact amid mounting protests to scrap it
Bangladesh will review a trade deal with the US signed by its interim government in February, a top aide to Prime Minister Tarique Rahman has said.
Zahed Ur Rahman, the prime minister’s adviser on information and broadcasting, told the media on Tuesday that scrapping the agreement could have implications for bilateral relations and reciprocal tariff arrangements. However, the government is ready to review and renegotiate certain provisions.
“We can revisit the agreement. We can identify the areas that are more problematic and potentially harmful to the state, and conduct an initial review within the government. I hope we can proceed towards negotiations with the US,” Zahed said.
The decision to review the pact with the US comes a day after left-leaning student organizations held a massive rally in Dhaka demanding its cancellation.
The pact, announced just four days ahead of national elections in February, was signed by Bangladesh’s then-interim government led by Nobel laureate Muhammad Yunus.
Opponents claimed that the provisions of the pact limit Dhaka’s sovereign interests. For instance, the document reportedly says that if Bangladesh enters into a trade deal with a “non-market country” (a reference Washington uses for China and Russia), the US can terminate the pact, the Daily Star reported in February.
The deal also forces Dhaka to automatically align with US sanctions and trade wars, forfeiting its right to remain neutral in power conflicts. If Dhaka breaches its provisions, US may reinstate previously agreed tariffs. The deal provides for a tariff rate of 19% for exports to the US, lower than the 20% set in August.
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