DHAKA, July 20 (Reuters) - Bangladesh signed a deal on
Sunday to import 700,000 tonnes of wheat annually from the
United States over the next five years, in a move aimed at
securing tariff relief from the Trump administration amid
growing trade tensions, officials said.
The agreement - formalised through a memorandum of
understanding inked in Dhaka between the Ministry of Food and
trade group U.S. Wheat Associates - comes at a critical moment,
with Washington set to impose a 35% tariff on Bangladeshi
exports from August 1.
Officials in Dhaka hope the pact will help narrow
Bangladesh's $6 billion trade deficit with the U.S. and pave the
way for more-favourable treatment of key export items,
particularly garments, which dominate shipments to the United
States.
Bangladesh's de facto food minister, Ali Imam Majumder, said
at the signing ceremony that the agreement would not only ensure
a steady supply of high-quality wheat at competitive prices but
also strengthen trade ties between the two nations. "This step
reflects our willingness to build mutual trust and deepen
economic cooperation with the United States," he said.
The U.S. tariff hike has rattled Bangladesh's export sector,
especially the ready-made garments industry, which fears losing
competitiveness in one of its largest markets.
The wheat initiative is widely seen as part of a broader
diplomatic and trade strategy to soften Washington's stance and
open the door for further negotiations.
Officials from the Ministry of Commerce said talks are
ongoing with U.S. counterparts in an effort to lower the duty,
arguing that such high tariffs could significantly undermine
Bangladesh's competitiveness in the American market.
Bangladesh imports around 7 million tonnes of wheat each
year, with the bulk sourced from the Black Sea region due to its
lower cost. Smaller volumes of higher-quality wheat, including
some from the United States, are also imported for blending.