Bangladesh’s exporters need greater clarity on the country’s reciprocal trade agreement with the United States, as the deal could unlock new market opportunities while exposing businesses to additional compliance costs and supply-chain requirements, business leaders and economists have said.
The concerns were raised at a seminar titled “New Opportunities and Challenges in Bangladesh-US Trade” on the final day of the three-day 30th US Trade Show 2026, jointly organised by the American Chamber of Commerce in Bangladesh (AmCham) and the US Embassy in Dhaka.
Syed Nasim Manjur, managing director of Apex Footwear and president of the Footwear, Leather Goods and Accessories Exporters Association, said the government and relevant stakeholders needed to openly discuss the agreement’s provisions, potential benefits and associated risks.
Speaking at the seminar today (7 November), he said exporters must have a clear understanding of the deal’s implications to make effective use of the opportunities it offers.
“How we use the agreement is important. There should be full transparency about what is in the agreement and what it means,” he said.
Manjur cautioned that the agreement could set a precedent for other trading partners, which might subsequently seek similar market access arrangements from Bangladesh.
While the deal could become an important driver of economic growth and strengthen the competitiveness of Bangladeshi exporters, meeting higher compliance standards and supply-chain traceability requirements could increase operational costs, he said. Businesses should therefore prepare for these additional obligations in advance.
He also urged exporters to scrutinise the US tariff structure and explore whether adjustments to product specifications could help reduce applicable duties.
Some specialised legal advisory firms in the United States assist businesses in identifying product modifications that could substantially lower tariff rates, he noted.
Exporters flag lack of implementation guidance
The discussion also highlighted concerns over inadequate consultation between policymakers and exporters on how the agreement would be implemented.
Shams Mahmud, managing director of Shasha Denims and former president of the Dhaka Chamber of Commerce and Industry, said businesses had received little guidance on how to capitalise on the agreement, despite its signing nearly a year ago.
He alleged that the relevant government ministries had failed to engage exporters adequately in discussions on the implementation process.
However, the agreement appeared to be attracting interest among American buyers, he said, noting that some companies that had not traditionally sourced products from Bangladesh were now exploring business opportunities in the country.
Mahmud also pointed to emerging opportunities involving US cotton. Pakistan, for instance, imports cotton from the United States, uses it to manufacture fabrics and subsequently exports garments made from those fabrics to the US market. A similar arrangement could open alternative sourcing and supply-chain opportunities for Bangladeshi suppliers, he added.
US cotton initiative raises questions
Ali Arsalan, country representative of Cotton USA, said US Agriculture Secretary Brooke Rollins had recently highlighted Bangladesh under the “Great American Cotton Plan”.
The initiative reportedly proposes full tariff exemption for garments manufactured using US cotton. However, the mechanism through which the arrangement would operate remained unclear, he said.
Fahmida Khatun, distinguished fellow at the Centre for Policy Dialogue (CPD), said Bangladesh’s implementation of the US trade agreement and its graduation from the least developed country (LDC) category should be pursued as complementary priorities.
She said the country would need to strengthen compliance, improve operational efficiency and raise productivity to capitalise on the agreement’s opportunities.
These improvements would also be essential for maintaining export competitiveness after Bangladesh graduates from the LDC category, she added.
Mahbub Ur Rahman, chief executive officer of HSBC Bangladesh, moderated the discussion. AmCham President Syed Mohammad Kamal delivered the welcome address, while Ala Uddin Ahmed, CEO of MetLife Bangladesh, presented the keynote paper.
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