Bangladesh Commerce Minister Khandakar Abdul Muktadir asserted on Tuesday that there was no scope for cancelling the US-Bangladesh trade agreement signed at the end of the Interim Government’s tenure, though some clauses could be renegotiated.
And Foreign Minister Khalilur Rahman added that a comparative study of US deals with India, Indonesia, Vietnam, and Cambodia showed that the Bangladesh pact was not exceptional.
Indeed, these agreements share striking similarities in their unequal nature. These countries have accepted America’s demanding terms, which include massive purchases of US arms, high-value industrial goods, and farm products in exchange for tariff reductions.
The Bangladesh agreement
The US-Bangladesh Agreement on Reciprocal Trade (ART) offers structured access to the American market. However, provisions barring dealings with “non-market” economies (China and Russia), mandating compliance with US sanctions, and imposing energy procurement rules significantly limit Dhaka’s strategic autonomy.
“The central question is not whether the agreement delivers export gains, but whether its institutional, geopolitical, and security-related provisions limit Bangladesh’s capacity to balance among major powers while maintaining domestic legitimacy,” notes an analysis in The Diplomat.
In early March, US Assistant Secretary of State S Paul Kapur visited Dhaka to stress strict adherence to the agreement as a precondition for expanding trade and investment, while also seeking regional security coordination.
Under the deal, Biman Bangladesh Airlines has already signed for 14 Boeing aircraft costing over Tk35,000 crore ($39 billion). Bangladesh has committed to importing $15 billion worth of LNG over 15 years, 700,000 tonnes of wheat annually for five years, and soybeans worth $1.25 billion — a combined agricultural and energy commitment of about $3.5 billion.
Additional obligations include increased purchases of US military equipment, reduced imports from certain countries (China and Russia basically) and curbs on subsidies that could conflict with US interests. Bangladesh must consider American priorities when negotiating free trade or digital trade pacts with others and when sourcing nuclear technology or energy.
The ART requires cooperation on export controls, harmonisation of strategic-goods regulations, and avoidance of measures that “backfill or undermine” US restrictions. This effectively compels alignment with Washington on sensitive issues, including Russia-related sanctions and China-focused export controls.
Energy and security reliance on the US is further compelled through commitments to import US LNG, civilian aircraft, and defence equipment. This creates challenges for Bangladesh, which must continue the Russia-linked Rooppur nuclear power plant and Chinese-funded infrastructure projects.
While the Tarique Rahman government appears willing to proceed with the deal, the main opposition party, the Jamaat-e-Islami, has vowed to remove harmful clauses. The Centre for Policy Dialogue has called for cancellation, labelling the deal “highly discriminatory.” Economists and human rights groups have demanded a White Paper.
Interim US-India agreement
On February 2, 2026, President Trump announced a reduction of US tariffs on India from 50% to 18%. And talks were on a trade deal with both sides negotiation hard.
Though the full agreement is not yet formally signed, the interim framework has drawn sharp criticism from opposition parties, who accuse the Modi government of yielding to US pressure on tariffs, energy purchases, and agricultural access. Cheap, subsidised US farm and dairy products could harm Indian farmers, they said.
Key terms, per the White House statement of February 9, include an 18% reciprocal tariff on Indian goods such as textiles, apparel, leather, footwear, organic chemicals, home décor, artisanal products, and certain machinery. Upon full conclusion, tariffs on generic pharmaceuticals, gems, diamonds, and aircraft parts would be eliminated entirely.
In return, India has committed to purchasing $ 500 billion worth of US goods and services over a specified period — a sharp increase from the current annual level of around US$ 45 billion. Trump claimed India would halt Russian oil imports and shift to US and Venezuelan energy supplies, though India’s official readout remained silent on these points.
Despite its incomplete status, the framework offers gains for Indian exporters. An 18% tariff rate is more favourable than those applied to Pakistan (19%), Vietnam (20%), and Bangladesh (20%). Zero tariffs on generic pharmaceuticals would be a major boost for India, a leading global supplier.
The deal also supports India’s manufacturing goals by leveraging the SHANTI Act of 2025 to open the civil nuclear sector, deepening tech cooperation, and attracting US investment in data centres. Aerospace and defence firms like Boeing, Lockheed Martin, and RTX are exploring co-production partnerships.
Digital trade issues remain unresolved, particularly regarding India’s data protection law, localisation requirements, and digital services tax.
Vietnam
On October 26, 2025, the US and Vietnam agreed to a Framework for Reciprocal, Fair, and Balanced Trade. A 20% baseline US tariff applies to Vietnamese goods, with potential exemptions or zero tariffs for specific products still under negotiation. The deal aims to reduce non-tariff barriers and increase US agricultural and manufactured exports.
Vietnam has stepped up action against counterfeit goods, approved SpaceX’s Starlink services (bypassing local partnership rules), agreed to buy $300 million in Boeing jets, and advanced a $1.5 billion Trump Organization golf course. Reports indicate progress toward purchasing F-16 fighter jets.
Vietnam’s export-oriented growth relies on foreign direct investment, but reducing the tariff from 20% to 10% would be needed to remain competitive. Strict rules against transshipments reflect US concerns that Vietnam serves as a conduit for Chinese goods. China supplies 38% of Vietnam’s intermediate goods, making it vulnerable to any escalation in US-China trade tensions.
Indonesia
Indonesia and the US have finalised a deal cutting American tariffs from 32% to 19%. Over 1,800 Indonesian commodities — including palm oil, coffee, and cocoa — gain tariff exemptions. In exchange, Indonesia will eliminate tariffs on over 99% of US products and remove non-tariff barriers.
Jakarta will ease restrictions on critical minerals exports, deepen cooperation with US firms in mining and processing (including rare earths), and ensure that foreign-owned facilities face the same rules as local ones.
Indonesia commits to importing up to $38.4 billion in US goods and services, including $15 billion in energy and $4.5 billion in agricultural products like cotton, wheat, and soybeans. Additional obligations include minimum purchases of US beef, fruits, rice, and ethanol; facilitating $10 billion in direct investment in US projects; and avoiding ownership restrictions or earnings repatriation rules that disadvantage American investors.
Indonesia must also consult the US before signing new digital trade pacts, refrain from discriminatory digital taxes, and avoid forcing US firms to support local news outlets or process data onshore.
Fuel blending targets for bioethanol favour US imports. Jakarta must align with US trade restrictions on third countries and act against entities harming US interests, the deal says.
An overall assessment
The Bangladesh Foreign Minister’s defence — that other countries have accepted similar terms — is unconvincing. While these deals provide tariff relief and market access, they uniformly extract significant concessions in purchases, policy alignment. They uniformly curb strategic autonomy. The pattern reveals a consistent US approach that prioritises American commercial and geopolitical interests, leaving Asian partners with limited room to manoeuvre amid great-power competition.
