Bangladesh signs U.S. wheat-import deal in bid to curb tariff pressure

Bangladesh signed a woody connected Sunday to import 700,000 metric tons of wheat annually from the United States implicit the adjacent 5 years, successful a determination aimed astatine securing tariff alleviation from the Trump medication amid increasing commercialized tensions, officials said.

The statement — formalized done a memorandum of knowing inked successful Dhaka betwixt the Ministry of Food and commercialized radical U.S. Wheat Associates — comes astatine a captious moment, with Washington acceptable to enforce a 35% tariff connected Bangladeshi exports from August 1.

Officials successful Dhaka anticipation the pact volition assistance constrictive Bangladesh's $6 cardinal commercialized shortage with the U.S. and pave the mode for more-favorable attraction of cardinal export items, peculiarly garments, which predominate shipments to the United States.

Bangladesh's de facto nutrient minister, Ali Imam Majumder, said astatine the signing ceremonial that the statement would not lone guarantee a dependable proviso of high-quality wheat astatine competitory prices but besides fortify commercialized ties betwixt the 2 nations. "This measurement reflects our willingness to physique communal spot and deepen economical practice with the United States," helium said.

The U.S. tariff hike has rattled Bangladesh's export sector, particularly the ready-made garments industry, which fears losing competitiveness successful 1 of its largest markets.

The wheat inaugural is wide seen arsenic portion of a broader diplomatic and commercialized strategy to soften Washington's stance and unfastened the doorway for further negotiations.

Officials from the Ministry of Commerce said talks are ongoing with U.S. counterparts successful an effort to little the duty, arguing that specified precocious tariffs could importantly undermine Bangladesh's competitiveness successful the American market.

Bangladesh imports astir 7 cardinal metric tons of wheat each year, with the bulk sourced from the Black Sea portion owed to its little cost. Smaller volumes of higher-quality wheat, including immoderate from the United States, are besides imported for blending.