USTR team discusses trade deal, cooperation with Bangladesh Agreement includes provision for review in line with national interest

Bangladesh retains the option to review and adjust its trade agreement with the United States in line with national interests, Commerce Minister Khandaker Abdul Muktadir has said, seeking to allay concerns. He noted that such flexibility is built into the pact, leaving “no reason for worry.”

Speaking to journalists on Tuesday after a review meeting with a visiting US trade delegation, the minister said the discussions with Assistant US Trade Representative for South and Central Asia Brendan Lynch focused on cooperation and the broader framework of the deal.

Following the meeting at the Commerce Ministry, he stressed that international agreements are founded on mutual understanding and shared benefit. “Any agreement between two countries is reached through coordination, taking into account the interests of both sides to ensure a win-win outcome. So there is no need for unnecessary concern,” he said, referring to the much-discussed deal signed toward the end of the previous interim government’s tenure.

He clarified that the current administration did not initiate the agreement but inherited it. “A state-level agreement cannot be cancelled arbitrarily like a private contract. It is a reality, and our goal is to use it to expand Bangladesh’s trade and investment opportunities,” he added.

Referring to a recent trade investigation launched by the US, the minister said Bangladesh had sought clarification and submitted its observations. “We have made it clear that it would have been more constructive if such an investigation had not been initiated under the existing agreement framework,” he noted.

Addressing concerns over trade practices, he rejected allegations of overcapacity or dumping. He pointed out that Bangladesh is largely an import-dependent economy, while its exports—particularly ready-made garments—comply with strict international standards. “There is no scope for labour law violations or child labour in this sector,” he said.

On the possibility of scrapping the deal, Muktadir reiterated that national interest remains paramount. “If any provision goes against Bangladesh’s interests, the agreement itself provides room for necessary adjustments,” he said, describing it as a “self-correcting” mechanism.

He reaffirmed that review and adjustment provisions are embedded in the pact, and therefore there is no cause for alarm. The meeting also explored ways to deepen Bangladesh–US trade and investment ties, along with other areas of mutual interest. Acting Commerce Secretary Md Abdur Rahim Khan was among those present.

The Regional Trade Agreement (RTA) between Bangladesh and the United States was signed on February 9, just days before the national parliamentary election under the interim government led by Dr Muhammad Yunus.

Meanwhile, the agreement’s constitutional and legal validity has been challenged in the High Court. Lawyer Mohammad Maidul Islam Polok filed a public interest litigation on May 4, represented by Advocate Subir Nandi Das, naming the secretaries of the foreign affairs, finance and commerce ministries as respondents.

According to media reports, the agreement places 131 conditions on Bangladesh, compared with six on the US side. The petitioner has described the deal as “manifestly irrational and structurally unequal,” arguing that it undermines the country’s economic sovereignty.