The Bangladesh-US Trade Deal Is a Litmus Test for Dhaka’s Strategic Autonomy
The U.S.-Bangladesh Agreement on Reciprocal Trade (ART) signed before Bangladesh's February elections provides more access to the American market but also introduces constraints on Bangladesh's ability to maneuver among major powers. The new BNP government faces challenges in implementing the agreement while managing relations with great powers.
The U.S.-Bangladesh Agreement on Reciprocal Trade (ART) was signed three days before Bangladesh's February elections. The deal provides more structured access to the American market but also includes provisions on 'non-market' economies, sanctions compliance, and energy procurement that may limit Bangladesh's strategic autonomy. Critics portray the ART as a 'structurally unequal instrument' that narrows Bangladesh's economic sovereignty. The new BNP government must navigate these constraints through selective implementation and domestic messaging. U.S. President Donald Trump urged Bangladesh's new prime minister to expedite the ART's implementation and finalize defense agreements. S. Paul Kapur, the U.S. assistant secretary of state, visited Dhaka and emphasized adherence to the trade agreement's stipulations as a precondition for amplifying bilateral trade and investment flows.
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