Bangladesh's ruling Bangladesh Nationalist Party (BNP) government has confirmed it is formally reviewing a trade agreement signed with the United States by the preceding Muhammad Yunus-led interim administration, with a senior party official stating that Dhaka will take steps to protect national sovereignty and rights. The disclosure came as the elected government of Prime Minister Tarique Rahman, which assumed office in February 2025, faces mounting domestic pressure to cancel or renegotiate the deal.

What the BNP Said

BNP lawmaker and Economic Affairs Secretary of the party's central committee, Khaled Hossain Mahbub Shyamal, told The Business Standard newspaper on Thursday that the government had obtained a copy of the agreement and was actively working on it. “We will try, as far as possible, to review the agreements and take future steps while ensuring that the country’s sovereignty and rights remain intact,” Shyamal said.

He also questioned the transparency of the interim government’s dealings, noting: “The agreements they signed were not known to the people of the country, nor were they known to us. They can explain better under what circumstances and in what context those agreements were made.”

Why the Deal Is Controversial

The agreement was signed on February 9, just three days before Bangladesh’s national election, reportedly under conditions of strict secrecy. Critics argue the timing and opacity of the signing raise serious questions about democratic accountability. Reports have alleged that the deal extends well beyond standard tariff concessions, reportedly embedding strategic conditions tied to national security and geopolitics.

According to a contract released by the Office of the United States Trade Representative (USTR), Bangladesh accepted a wide range of conditions in exchange for a limited tariff concession. Among the concerns flagged are extensive tariff concessions favouring the US, removal of non-tariff barriers to American industrial, agricultural, and biotechnology exports, and mandatory import obligations for certain costly goods.

Sovereignty and Third-Country Clauses

Particularly contentious, according to reports, is a clause that reportedly restricts Bangladesh from entering into any agreement with a third country that contains ‘scientifically unsubstantiated, discriminatory, or biased’ technical standards that could harm US exports. An opinion piece in The Daily Star further noted that if Bangladesh enters into a free trade or preferential economic agreement with a country the US considers ‘non-market-based’ — such as China or Russia — Washington could cancel the deal and reimpose punitive tariffs.

The same analysis flagged a restriction on Bangladesh’s ability to procure nuclear reactors, fuel rods, or enriched uranium from countries deemed ‘risky to US interests,’ with limited exemptions for pre-existing agreements or cases where no alternative supplier exists.

Background: How the Interim Government Came to Power

The Yunus-led caretaker administration was formed in July 2024 after Sheikh Hasina’s government fell following mass protests demanding democratic reforms and accountability. Beyond the US trade deal, the interim government signed several other international agreements and introduced the July Charter, a political and constitutional reform framework aimed at institutionalising democratic governance. However, the Charter’s implementation has stalled amid constitutional deadlock, political dissent, and legal ambiguity, despite broad popular support.

What Happens Next

The BNP government has stopped short of announcing a cancellation, framing its position as a review rather than a rejection. The outcome of that review — and whether Dhaka seeks to renegotiate terms with Washington — will be closely watched given Bangladesh’s significant trade exposure to the US, particularly in the garments sector. Any move to revise or exit the agreement could have implications for Bangladesh’s broader economic diplomacy and its relationships with both Western and regional partners.