US, Bangladesh reciprocal trade deal opens US$3.5B window for American agriculture
Under the agreement, Bangladesh will provide preferential market access for U.S. agricultural goods, including wheat, soy, cotton, corn, dairy, beef, poultry, and tree nuts.
USA – The United States and Bangladesh have signed a new reciprocal trade agreement that is expected to unlock approximately US$3.5 billion in planned purchases of US agricultural products, while significantly easing market access barriers for American exporters.
The deal, signed this week, grants preferential access for a wide range of US farm and ranch commodities, including wheat, corn, soybeans, cotton, dairy, beef, poultry and tree nuts.
The agreement was announced by the United States administration under President Donald Trump, alongside US Trade Representative Jamieson Greer, who framed the pact as part of broader efforts to correct trade imbalances while expanding overseas demand for American agricultural products.
On the other side, Bangladesh, one of South Asia’s fastest-growing consumer markets, committed to science-based sanitary and phytosanitary standards and the recognition of US regulatory certifications, measures designed to reduce long-standing non-tariff barriers.
According to US officials, the agreement covers key sectors critical to US farm incomes, including feed grains, oilseeds, fibre and animal protein.
A notable commercial provision links zero-tariff access for certain Bangladeshi apparel exports to the use of US-produced cotton and textile inputs, effectively tying Bangladesh’s powerful garment sector more closely to US agricultural and industrial supply chains.
The new pact builds on earlier cooperation, particularly in wheat trade. Bangladesh had previously committed to purchasing 700,000 metric tonnes of US wheat over five years, a target it has nearly met ahead of schedule.
As of January 29, the country had already imported 676,000 metric tonnes, underscoring the pace of demand growth and the importance of Bangladesh as a destination for US wheat exports.
Mike Spier, president and CEO of U.S. Wheat Associates, said the agreement reinforces an already strengthening relationship.
Speaking to RFD News, Spier explained that an earlier memorandum of understanding laid the groundwork for closer cooperation, while the new reciprocal trade deal provides greater certainty for exporters.
He highlighted Bangladesh’s large population and expanding food consumption as key drivers of long-term wheat demand, offering meaningful opportunities for US producers seeking stable, growth-oriented markets.
The agreement has also been welcomed by other US agricultural stakeholders.
Reacting to the announcement, the U.S. Grains & BioProducts Council described the deal as a clear win for US corn producers.
Council chairman Mark Wilson said the agreement “clears the path for greater market access and generates instant demand for products that will benefit both US exporters and Bangladeshi consumers,” while applauding the administration’s efforts to connect American farmers with global customers.
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