Trade Agreement: Bangladesh bound by 131 obligations, US by only 6

A bilateral Reciprocal Trade Agreement (RTA) between Bangladesh and the United States was signed on 9 February, just three days before Bangladesh’s national parliamentary election. The agreement has drawn widespread debate and criticism for what appears to be a highly asymmetrical set of obligations.

Critics argue that the deal imposes extensive and binding commitments on Bangladesh, while placing comparatively minimal obligations on the United States. In legal terms, the word “shall” denotes mandatory requirements, whereas “will” generally indicates intent. In this 32-page agreement, “shall” appears 179 times, while “will” appears only three times. Of these, “Bangladesh shall” is used 131 times, compared to just six instances of “US shall”.

The agreement contains six core chapters covering tariffs, non-tariff barriers, digital trade, security cooperation, investment, and implementation mechanisms.

Tariffs and market access

Under the tariff and quota provisions, Bangladesh will impose specified duties on US goods and will not apply import quotas. The United States, in turn, will apply its own tariff rates on Bangladeshi exports.

A key section on non-tariff barriers outlines 11 clauses, stating that Bangladesh must not introduce regulatory requirements—such as licensing, testing, quality checks or procedural approvals—that could hinder US imports or create trade barriers.

The agreement prioritises access for US agricultural products in the Bangladeshi market. Any import restrictions for health or safety reasons must be scientifically and risk-based, rather than trade-restrictive. Bangladesh is also required not to adopt standards that could disadvantage US goods compared to other countries.

Similarly, transparency and fairness must be ensured in geographical indication (GI) protections.

Food, agriculture and product standards

Bangladesh will not restrict US market access based solely on naming conventions for meat and cheese products.

It is required to provide strong intellectual property protection, including civil, criminal and border enforcement measures, covering online infringements as well.

In services, Bangladesh must ensure that US service providers are not treated less favourably than domestic or other foreign firms. Any new regulatory measures must be transparent and subject to consultation.

The digital trade chapter includes four clauses. Bangladesh must not impose discriminatory taxes on US digital services and must facilitate digital trade flows.

It is required to allow cross-border data transfer for business purposes, cooperate on cybersecurity with the US, and refrain from imposing tariffs on electronically transmitted content. Bangladesh is also expected to support WTO proposals for permanent moratoriums on such tariffs.

Security and strategic trade

Under economic and national security provisions, if the US imposes trade measures on security grounds, Bangladesh must be informed and is expected to adopt similar supportive measures following consultations.

Bangladesh is also required to act against trade practices involving third-country entities that undercut prices and harm US markets.

The agreement further commits Bangladesh to align export controls on sensitive technologies with US standards and to cooperate in preventing sanctions evasion.

In addition, Bangladesh must assist US enforcement of export control and sanctions regimes, share investment-related information, and ensure transparency in sensitive economic sectors.

A clause also states that Bangladesh will not import nuclear reactors, fuel rods or enriched uranium from suppliers deemed to threaten US interests, with limited exceptions.

Investment and commercial provisions

Bangladesh must facilitate US investment in key sectors including energy, telecommunications, transport, infrastructure and critical minerals, ensuring non-discriminatory treatment compared to domestic investors.

State-owned enterprises are required to operate on commercial principles without discriminatory practices or hidden subsidies.

The US, meanwhile, commits to facilitating reduced or zero tariffs for selected Bangladeshi textile and garment exports, subject to import volumes of raw materials such as cotton and synthetic fibres.

Governance, transparency and labour reforms

Bangladesh is required to enhance transparency in regulations, publish laws promptly, conduct prior consultation before introducing new rules, and base policymaking on risk and evidence-based analysis.

It must also strengthen anti-corruption frameworks, enforce penalties, ensure procurement transparency, and empower independent oversight bodies.

Labour law reforms are extensive, including lowering thresholds for union formation, easing registration requirements, expanding collective bargaining rights, and reducing restrictions on strikes.

Export processing zones (EPZs) must allow unionisation or be brought under revised labour laws within two years. Restrictions on strikes and penalties for industrial action must also be eased.

Environmental, fisheries and biodiversity commitments

Bangladesh is required to strengthen environmental protection laws, combat illegal logging, improve forest governance, and publish forestry data online.

It must also implement WTO fisheries subsidy reforms, prohibit subsidies contributing to overfishing, and enforce stricter controls on illegal, unreported and unregulated fishing.

Wildlife trafficking must be curbed through stricter enforcement and port inspections, while international conventions such as CITES must be fully implemented.

Customs, cyber and regulatory alignment

The agreement recognises electronic bills of lading, mandates acceptance of US-issued certifications for agricultural and food products, and requires streamlined customs procedures.

Bangladesh must ensure cybersecurity protections in ports and logistics systems while restricting unauthorised export or transfer of sensitive US-origin technologies.

It must also align personal data protection frameworks with international standards and consider US input in relevant legislation.

Several digital and telecom regulations, including earlier digital security-related rules, are to be revised or repealed, while parts of the 6 GHz spectrum are to be opened for licence-free use.

Either party may terminate the agreement with written notice, effective 60 days after notification or on a mutually agreed date. Amendments are permitted only by mutual consent, without undermining existing benefits.

The agreement has sparked significant criticism in Bangladesh over perceived imbalances in obligations and regulatory commitments. Analysts and stakeholders have questioned the extent of policy concessions required, particularly in labour, digital governance, intellectual property and trade regulation, compared to limited reciprocal obligations on the US side.