The Centre for Policy Dialogue (CPD) on Saturday called on the government to immediately withdraw from a recently signed bilateral trade agreement with the United States, warning that the deal undermines Bangladesh's sovereignty, limits its future trade options, and conflicts with the country's long-term development strategy.
Speaking at a media briefing in Dhaka, CPD leaders described the agreement-signed in the final days of the previous interim administration-as "extremely discriminatory." They noted that while formal notifications between the two countries have not yet been exchanged, the new government still has the opportunity to exit the deal and renegotiate on fair and balanced terms.
CPD Research Director Khondaker Golam Moazzem said the deal forces Bangladesh to gradually phase out duties on American products, while the US retains broad rights to impose reciprocal tariffs on Bangladeshi exports. Further punitive measures can also be applied if Dhaka fails to comply with any condition, creating a framework heavily skewed in favor of the United States.
"The structure of this agreement leaves Bangladesh open to retaliatory actions while offering limited benefits in return," Moazzem said.
The think tank highlighted clauses that restrict Bangladesh from entering trade agreements with third countries if those deals conflict with US Sanitary and Phytosanitary standards or Technical Barriers to Trade measures. CPD warned that this provision effectively allows Washington to dictate the rules of Bangladesh's future trade partnerships, undermining the country's ability to negotiate independently with other economies.
Additional provisions require Bangladesh to act against third-country companies if they are perceived to harm US exports-a move CPD called intrusive and inconsistent with independent trade policy. In the digital sector, the deal bars Bangladesh from imposing digital service taxes on US tech firms and blocks customs duties on electronic transmissions, potentially limiting revenue options as the nation's digital economy grows.
The agreement extends into sensitive sectors, including minerals and energy. It mandates Bangladesh to permit direct US investment in critical minerals, adhere to US export control policies, and share information on foreign direct investment from other countries. Provisions also include arrangements related to duty evasion or anti-tariff measures on nuclear product imports, raising concerns about regulatory autonomy and national economic security.
Moazzem emphasized that the deal contradicts Bangladesh's Smooth Transition Strategy for graduation from the least developed country (LDC) category. While the strategy advocates diversified Free Trade Agreements and broad-based foreign investment, the US agreement narrows policy space and restricts Dhaka's freedom to decide on technology transfers, sourcing, and future trade alliances.
CPD warned that proceeding with the agreement in its current form would weaken Bangladesh's negotiating leverage amid global trade realignments, supply chain shifts, and rising protectionism. The think tank urged the government to prioritize sovereignty, policy independence, and long-term competitiveness over short-term diplomatic considerations.
Beyond the US deal, CPD also recommended a review of the Economic Partnership Agreement (EPA) signed with Japan on February 9, noting that provisions granting duty-free LNG imports could prolong dependence on fossil fuels and slow the transition to renewable energy. Trade policy, CPD stressed, must align with climate commitments and energy diversification goals rather than reinforce carbon-intensive pathways.
The organisation outlined a wider reform agenda for the government's first 180 days, calling for stronger local governance, strict accountability in the power sector-including a "no electricity, no pay" policy-and independent ombudsmen in banking, business, and revenue administration. CPD also emphasized the need for improved financial sector governance, transparency in large contracts, and safeguarding macroeconomic stability amid external pressures.
"Immediate corrective action is critical," Moazzem said. "If left untouched, this trade deal could set binding precedents that reshape Bangladesh's trade, digital, and energy landscape for years to come."
CPD's message was clear: reclaim policy space before it becomes legally constrained, renegotiate on equitable terms, and ensure that Bangladesh's long-term development strategy remains intact.
