Yunus Moves Fast on ‘Secret’ US Trade Deal Ahead of Bangladesh Polls, Exporters on Edge

Dhaka is set to sign a Bangladesh–US trade agreement on February 9, just three days before the country’s national elections.

With no official disclosure of its contents — a move that has triggered widespread concern among exporters, economists and political observers.

The agreement is being pushed by the unelected interim administration led by Muhammad Yunus, raising serious questions over democratic mandate, transparency and timing. Critics argue that a non-elected, outgoing government is attempting to lock Bangladesh into a long-term economic commitment without public debate or parliamentary scrutiny.

Concerns have been further amplified by reports that the Yunus administration signed a non-disclosure agreement (NDA) with Washington in 2025, effectively preventing any public examination of the negotiations. The secrecy surrounding the deal, coupled with its signing just days ahead of the February 12 polls, has intensified fears about its legality and long-term economic consequences.

Why the rush?

While the interim government is expected to step aside after the elections, it is moving swiftly to conclude a trade agreement that could reshape Bangladesh’s export landscape for years.

Economist and public intellectual Anu Muhammad questioned the urgency in a social media post, asking why major decisions — ranging from port leasing and arms imports to trade agreements with the US — were being fast-tracked on the eve of elections. He described the process as “non-transparent, illogical and irregular” and alleged that foreign lobbyists had been embedded within the administration to push such agreements through.

Exporters voice deep unease

The sharpest opposition has come from Bangladesh’s export sector, particularly the ready-made garments industry, which dominates trade with the United States.

Bangladesh exports between $7 billion and $8.4 billion worth of apparel and textiles to the US annually, with garments accounting for nearly 96 per cent of that total. The sector directly employs an estimated 4–5 million workers, the majority of them women.

Exporters fear the secretive agreement could weaken, rather than strengthen, Bangladesh’s competitiveness. With US tariffs on Indian exports reduced to 18 per cent, while Bangladeshi goods currently face a 20 per cent tariff, industry leaders worry that the new deal may not deliver the expected relief.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) senior vice-president Inamul Haque Khan said the lack of consultation was deeply concerning. While there had been expectations that tariffs could fall to around 15 per cent, he said the timing of the agreement was troubling and that such a consequential decision should have been taken only after elections.

Economists warn of policy lock-in

Economists have cautioned that the interim government’s move could severely constrain the policy space of the next elected administration.

Debapriya Bhattacharya, distinguished fellow at the Centre for Policy Dialogue, said signing the agreement after the elections would have allowed political parties to debate its merits and risks. Proceeding now, he warned, risks “tying the hands” of the incoming government.

Dhaka Chamber of Commerce and Industry president Taskeen Ahmed echoed similar concerns, saying the lack of clarity made it impossible to assess who would benefit or suffer under the agreement. He noted growing anxiety within the business community over potential hidden conditions and their impact on specific sectors.

Political backdrop adds to controversy

The controversy has also revived debate over the circumstances under which the Yunus-led interim administration assumed office following the removal of Sheikh Hasina in 2024. Persistent allegations suggest Yunus came to power with backing from Islamist groups such as Jamaat-e-Islami, alongside tacit Western support, though these claims remain unverified.

Bangladesh’s trade relationship with the US has already been volatile. After Washington imposed a steep 37 per cent tariff in April 2025, rates were gradually reduced to 20 per cent by August.

Commerce Secretary Mahbubur Rahman last week confirmed February 9 as the signing date for the agreement but declined to provide any details on its content, further fuelling speculation and unease as the election countdown begins.