US Tariff and Security Agreement: USTR’s letter to Bangladesh hints at trade aggression
BDDigest | 15 July 2025
US Tariff and Security Agreement: USTR’s letter to Bangladesh hints at trade aggression
[Various quarters of the government put pressure on the editor of the newspaper to withdraw the report on the US reciprocal tariff published in Bangla Outlook yesterday, as a result of which they were forced to withdraw the report. Dr. Yunus’ press wing said that the US is quite angry that this letter was published and that it will harm the country. Why should we bow our heads in the face of US aggression? Why should we accept whatever they impose? They are promoters of freedom of speech and freedom of the press. Now, so much anger because the details of their farce have been revealed to the public?]
(BDDigigest is republishing the report published by Bangla Outlook due to public interest)
Special Report Washington, July 15, 2025
The United States is waging a trade and investment war with various countries in the name of reciprocal tariffs, as it tries to pressure importing countries to curb China’s growing export growth.
This information was found after reviewing a confidential letter from the US Trade Representative (USTR) to Bangladesh. The letter, titled US-Bangladesh on Reciprocal Trade (Bangladesh Specific Commitments), was sent on May 21.
The 21-page copy of the agreement is divided into 6 sections. That is, the agreement contains discussions on more than 6 types of hundreds of conditions. These are – tax-related conditions, non-tariff barriers conditions, digital trade and technology-related conditions, rules of origin conditions, economic and national security conditions, and commercial conditions.
A review of the economic and national security conditions and the trade conditions clearly shows the interest and pressure of the United States. These conditions have ensured an increase in US exports to Bangladesh. They also have clear instructions to reduce Chinese imports.
A review of the conditions related to non-tariff barriers shows that Bangladesh has been asked to accept various US standards without question. And in cases where Bangladesh has not yet been able to enact laws or establish standards, it has been asked to replace US standards. So that US products can freely enter Bangladesh.
Commercial Terms (6)
1. Bangladesh should increase imports of US military equipment and reduce imports of Chinese military products.
2. Imports of US civilian aircraft and parts through the state-owned airline Biman should be increased.
3. Bangladesh must ensure an increase in US energy imports and enter into long-term agreements for the import of liquefied natural gas (LNG).
4. US wheat imports should be increased for the social security sector.
5. Increase imports of US soybean oil for the military and government agencies, and build infrastructure in partnership with US companies to store soybeans.
6. The United States must sign this agreement and notify it to the World Trade Organization.
Conditions related to economy and national security (6)
1. Regulatory measures equivalent to those of the United States should be taken to develop the shipbuilding industry and shipping sector.
2. The use of the Chinese-made logistics system LOGINK in ports, jetties, and ships must be banned. The United States has already banned this system on security grounds.
3. No US product can be exported or re-exported to the country without the permission of the Bureau of Industry and Security. Necessary measures must be taken for this.
4. The country must provide all customs information related to imports of US-produced and controlled goods so that US agencies can identify the transactions.
5. Bangladesh should develop an export control system that provides for civil and criminal sanctions against violators, and where applicable, involve the United States in law enforcement.
Transparency should be increased in the creation of software that is related to the national security of various countries.
Digital Commerce and Technology Terms (5)
1. Bangladesh must recognize the global cross-border privacy policies CBPR and PRP for information exchange.
2. The formulation of personal data privacy policies should increase dialogue with the US government and the country’s private sector, and feedback should be reflected.
3. Cyber Security Ordinance 2025—Adequate safeguards must be taken to ensure freedom of expression. Stricter punishments for cyber crimes must be ensured.
4. The 2021 OTT Policy should be amended or repealed so that there is no identification requirement for end-to-end encrypted services.
5. The 600 to 700 MHz spectrum should be opened up for LPIs and VLPs.
The country has asked to reduce three types of tariffs on US exports: customs duties, supplementary duties, and regulatory duties.
Conditions related to non-tariff barriers in 13 sectors
The United States has identified non-tariff barriers in 13 sectors, including medicine, agriculture, and the environment, and has set nearly half a dozen conditions for effective action.
Medical devices:
The country has identified several obstacles to the import of US technology products used in the medical system. Four conditions have been given to remove these obstacles. These conditions mainly ask Bangladesh to accept the certification of the US regulatory agency FDA without question. In addition, Bangladesh has been asked to become a member of the International Medical Device Regulatory Forum-IMDRF.
Pharmaceuticals:
The United States has also paid close attention to Bangladesh’s pharmaceutical sector. USTR has made it a condition to accept FDA certification without question to expand the US pharmaceutical market. Bangladesh will not be able to supervise any manufacturing facility manufactured or FDA-approved within US territory.
Motor vehicles and parts:
Bangladesh must remove all discriminatory measures to ensure access to US vehicles. Any automotive product manufactured under the US Motor Vehicle Regulatory Agency’s FMVSS must be allowed access. That is, no additional inspections and conditions can be imposed on the import of US vehicles and parts.
Remanufactured products Remanufactured products manufactured in the United States cannot be released into the Bangladesh market without additional licensing or testing requirements.
Agriculture:
The United States is taking a tough stance on removing non-tariff barriers in the agricultural sector. The country has asked for the implementation of several conditions in various agricultural sub-sectors. In addition to accepting the certificates of various US regulatory agencies in these sub-sectors, it has also been said that the situation in Bangladesh will improve with their conditions. For example, the dairy sector has been given the condition of complying with at least US standards in safety. It has also been given the condition of accepting the halal certificates issued by US companies.
Regarding import certificate:
Bangladesh must quickly inform the World Trade Organization of the conditions it must meet to issue import certificates. Bangladesh will not be able to request permits to import US food and agricultural products.
Intellectual Property Terms:
Intellectual property is a significant aspect of the US tariff negotiations. The country has been pushing for the implementation of intellectual property laws for a long time. The country alleges that Bangladesh is producing various types of counterfeit products without complying with IPR. The country has made it a condition for Bangladesh to join 13 international agreements and conventions related to intellectual property. These include the Brussels Convention, Madrid Protocol, Singapore Agreement, Patent Law Agreement, Marrakesh Agreement, Hague Agreement, Budapest Agreement, etc.
Regarding services and investment:
The United States has asked Bangladesh to scrap mandatory reinsurance provisions for service sector companies. Bangladesh must take appropriate measures to join the World Trade Organization’s Services Domestic Regulation.
Bangladesh must pay all dues to US firms without delay. At the same time, there should be no obstacles to profit repatriation. Ownership barriers should be removed to increase the participation of US companies in the oil, gas, insurance and telecom sectors. No Objection Certificates (NOCs) should be issued to US businessmen as required.
Labor conditions:
The United States has been discussing several issues, including amending the law to ensure labor rights in Bangladesh, for a long time. The letter from USTR has mentioned some specific conditions in this regard. For example, the number of workers who agree to organize in factories should be reduced to 20 percent. The full right of workers in EPZs to organize should be ensured. All cases filed against garment workers and leaders involved in achieving fair demands should be withdrawn.
Environmental conditions:
The United States of America has said that Bangladesh must ensure that the law protects the environment. The country has asked for effective implementation of the law. USTR has also set conditions to increase cooperation in stopping various types of illegal trade. Various conditions have also been given to prevent wildlife trafficking, uncontrolled fishing and hunting in the sea.
Advisor Fauzul Kabir Khan’s statement:
Interim government’s Minister of Energy and Road Transport Fawzul Kabir Khan said, “The ongoing discussions with the US are broader than trade talks. Not just tariffs, they (the US) are also giving importance to their national security. They are also looking at how you are relating to other countries. A framework is being made on this. That is also under discussion. Not just tariffs, but non-tariff barriers have also been discussed.” He said these things at the Secretariat last Sunday (July 13).
Will discuss again: Trade Advisor
Trade Advisor Sheikh Bashiruddin said, “Preparations are being made for the third phase of talks with the US on reciprocal tariffs. Time has been sought from the US for this phase of talks. We hope that the US will set the tariffs at a reasonable level. Hopefully, Bangladesh will be able to continue doing business in the US market with its capabilities.” He said these things at a press conference at the Secretariat on Monday (July 14).
The last day of the second round of tariff negotiations was July 11. The talks took place in the US capital, Washington, DC.
At the press conference, the advisor said that Bangladesh has a non-disclosure agreement (confidentiality agreement) with the United States on this matter. As a result, it is not possible to say in detail what the United States wanted or what was discussed.
At the press conference, Commerce Secretary Mahbubur Rahman said, “The counter-tariff is a big blow for Bangladesh. That is why the government is working from all levels. Some work has already been done, some more work needs to be done. Now we have discussed with the stakeholders. We have taken their opinions. We are prepared. If any issue comes up in the future, we will discuss it with the United States.”
On April 2, the United States imposed reciprocal tariffs on various countries around the world. After the United States imposed these tariffs, which had a negative impact on global trade, it suspended these tariffs on April 7 until July 9.
Meanwhile, in a letter sent to Chief Adviser Professor Muhammad Yunus on July 8, US President Donald Trump announced the imposition of a 35 percent tariff on imports of Bangladeshi goods. The new tariff rate is scheduled to take effect from August 1.
