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Bangladesh-US trade: a bold strategy forward
Bangladesh is at a turning point in its economic transformation. In the past three decades, it has become one of the world’s most dynamic manufacturing economies, driven by export-oriented industries, entrepreneurship, and global supply chains. For the next phase, Bangladesh must diversify in
Bangladesh-US trade: a bold strategy forward
Mohd Akhtaruzzaman
Published :
Mar 17, 2026 23:27
Updated :
Mar 17, 2026 23:27
Bangladesh is at a turning point in its economic transformation. In the past three decades, it has become one of the world’s most dynamic manufacturing economies, driven by export-oriented industries, entrepreneurship, and global supply chains. For the next phase, Bangladesh must diversify industry, build technological strength, and position itself as a global manufacturing hub.
At the same time, the global economic landscape is undergoing significant change. Supply chains are being reorganised, manufacturing bases are shifting, and emerging economies are gaining greater importance in global trade networks. In this new environment, the growing economic engagement between Bangladesh and the United States (US) presents a significant strategic opportunity.
Rather than viewing this relationship through the narrow lens of trade competition, Bangladesh has an opportunity to frame it as one of industrial complementarity, in which both economies benefit from their respective strengths.
Bangladesh, therefore, proposes a clear and decisive strategy: the country will withdraw selected Non-Tariff Barriers (NTBs) affecting imports from the US in sectors that directly support Bangladesh’s economic modernisation, while simultaneously ensuring commitments from the United States to facilitate greater market access for Bangladeshi exports.
This approach recognises a simple reality — decisive economic cooperation that produces stronger results than prolonged negotiations that delay opportunity and create uncertainty.
US Growing interest in Bangladesh: The growing economic attention from the United States toward Bangladesh in recent years reflects broader global economic trends.
First, global supply chains are undergoing major restructuring. Following the COVID-19 pandemic and rising geopolitical tensions among major powers, multinational corporations have increasingly adopted a “China +1” strategy, diversifying manufacturing bases beyond a single country. Bangladesh, with its large workforce, competitive production costs, and established export industries, has emerged as an attractive alternative manufacturing hub.
Second, Bangladesh’s sustained economic growth has drawn international attention. Over the past decade, the country has demonstrated strong export performance, expanding industrial capacity, and a rapidly growing domestic market of more than 170 million people. Rising incomes and increasing urbanisation are gradually transforming Bangladesh from purely an export platform into an important emerging consumer economy.
Third, Bangladesh occupies a strategically important position in the Bay of Bengal. It is located near major maritime routes that connect South Asia, Southeast Asia, and the broader Indo-Pacific region. In this context, economic engagement with Bangladesh fits naturally with Indo-Pacific strategies. These strategies aim to strengthen supply chains and ensure stable trade routes.
Bangladesh is vital in global apparel supply chains. As the second-largest exporter of ready-made garments, it supplies much of the apparel sold in the US. US businesses need stable sourcing from Bangladesh.
Bangladesh’s structural advantages: Bangladesh possesses several structural advantages that could enable it to emerge as one of Asia’s most important manufacturing hubs by 2040 if current economic trends continue.
Bangladesh’s first advantage is its large, young workforce. This labour force can support manufacturing industries for decades.
The second advantage is Bangladesh’s existing industrial ecosystem. Thousands of factories, skilled production workers, logistics networks, and long-standing relationships with international buyers create a powerful manufacturing base. Few emerging economies can easily replicate this base.
Third, Bangladesh’s geographic location offers major trade advantages. Improvements in ports, economic zones, and transport networks continue. Bangladesh can then serve as a gateway for markets across South Asia, Southeast Asia, and the Indian Ocean region.
Finally, Bangladesh is diversifying its industries. Beyond garments, sectors like pharmaceuticals, leather goods, light engineering, agro-processing, and technical textiles are expanding.
Industrial complementarity: A long-term economic partnership can be built on the principle of complementary strengths rather than direct competition.
The US remains a global leader in advanced agriculture, high-technology manufacturing, industrial machinery, and medical innovation. Bangladesh, meanwhile, has developed strong competitive advantages in labour-intensive manufacturing industries, pharmaceuticals, and agro-processing.
Balanced trade architecture can therefore emerge in which:
• The US supplies technology, industrial machinery, agricultural inputs, and medical innovation
• Bangladesh supplies manufactured goods, value-added textiles, pharmaceuticals, and processed food products
Natural economic factors reinforce this complementarity. The long shipping distance between the two countries limits the competitiveness of many U.S. consumer goods in Bangladesh, while Bangladesh’s lower production costs strengthen its global competitiveness in labour-intensive manufacturing sectors.
NTB withdrawal with reciprocal commitment: Bangladesh will remove selected NTBS on-Tariff Barriers on imports from the United States in sectors that build Bangladesh’s productive capacity to speed up industrial upgrading and deepen economic cooperation.
These sectors include:
Agricultural inputs. Facilitating imports of high-quality soybeans, feed ingredients, wheat, and other agricultural inputs from the United States will improve productivity in Bangladesh’s poultry, aquaculture, and food-processing sectors.
Industrial machinery and manufacturing technology.Simplifying import procedures for advanced industrial equipment, manufacturing machinery, and energy technology will accelerate industrial modernisation and increase productivity across Bangladesh’s manufacturing sector.
Medical technology and specialised healthcare equipment.Streamlining regulatory procedures for advanced medical equipment and specialised pharmaceuticals will strengthen Bangladesh’s healthcare system and support improvements in public health infrastructure.
At the same time, Bangladesh will seek firm commitments from the United States. These commitments will help Bangladesh gain greater market access for exports in sectors where it is most competitive.
Expanding Bangladesh’s export base. Bangladesh can significantly expand exports to the United States through a targeted strategy focused on five high-potential sectors.
Technical and high-value textiles. Building on the success of the garment industry, Bangladesh can expand into advanced textile segments, including performance, industrial, and medical-grade textiles.
Footwear and leather goods. Bangladesh’s established leather industry provides a strong foundation for expanding exports of footwear, bags, and fashion accessories.
Light engineering and industrial components. The fast-growing light engineering sector can supply metal parts, bicycle components, electrical fittings, and mechanical parts to global supply chains.
Pharmaceuticals and generic medicines. Bangladesh’s pharmaceutical industry has developed strong manufacturing capabilities and has significant potential to expand exports of high-quality generic medicines.
Agro-processed food products. Bangladesh can increase exports of seafood, spices, ready-to-cook foods, and speciality processed food products to growing international markets.
These sectors can become new pillars of Bangladesh’s export economy. They will reduce reliance on a single industry and strengthen economic resilience.
Strategic outcomes: A carefully implemented NTB withdrawal strategy combined with export expansion could generate several long-term benefits for Bangladesh: (a) Diversification of exports beyond garments; (b) modernisation of domestic industries through technology imports; (c) stronger integration into global supply chains; (d) productivity gains in agriculture and manufacturing; (e) improved healthcare infrastructure; and (f) expansion of bilateral trade and investment.
Most importantly, this strategy can transform Bangladesh–US economic relations into a strategic partnership grounded in shared economic opportunities and complementary strengths.
END NOTE: Bangladesh’s future relies not just on protecting current industries. It also depends on our ability to compete, innovate, and grow in global markets. Strategic openness, guided by the national interest and careful planning, will speed up this transformation.
This policy direction is not about giving up national interest. Instead, it uses economic cooperation to strengthen Bangladesh’s industries, expand opportunities for workers, and secure prosperity for the nation.
Bangladesh has repeatedly demonstrated its resilience and determination to move forward. With clear strategy, confident leadership, and the collective strength of our people, the country can transform this moment of global change into a new era of national economic strength and prosperity.
Maj (Retd.) Mohd. Akhtaruzzaman, Former Member of Parliament (1991–1996, 1996–2001)
Mohd Akhtaruzzaman
Published :
Mar 17, 2026 23:27
Updated :
Mar 17, 2026 23:27
Bangladesh is at a turning point in its economic transformation. In the past three decades, it has become one of the world’s most dynamic manufacturing economies, driven by export-oriented industries, entrepreneurship, and global supply chains. For the next phase, Bangladesh must diversify industry, build technological strength, and position itself as a global manufacturing hub.
At the same time, the global economic landscape is undergoing significant change. Supply chains are being reorganised, manufacturing bases are shifting, and emerging economies are gaining greater importance in global trade networks. In this new environment, the growing economic engagement between Bangladesh and the United States (US) presents a significant strategic opportunity.
Rather than viewing this relationship through the narrow lens of trade competition, Bangladesh has an opportunity to frame it as one of industrial complementarity, in which both economies benefit from their respective strengths.
Bangladesh, therefore, proposes a clear and decisive strategy: the country will withdraw selected Non-Tariff Barriers (NTBs) affecting imports from the US in sectors that directly support Bangladesh’s economic modernisation, while simultaneously ensuring commitments from the United States to facilitate greater market access for Bangladeshi exports.
This approach recognises a simple reality — decisive economic cooperation that produces stronger results than prolonged negotiations that delay opportunity and create uncertainty.
US Growing interest in Bangladesh: The growing economic attention from the United States toward Bangladesh in recent years reflects broader global economic trends.
First, global supply chains are undergoing major restructuring. Following the COVID-19 pandemic and rising geopolitical tensions among major powers, multinational corporations have increasingly adopted a “China +1” strategy, diversifying manufacturing bases beyond a single country. Bangladesh, with its large workforce, competitive production costs, and established export industries, has emerged as an attractive alternative manufacturing hub.
Second, Bangladesh’s sustained economic growth has drawn international attention. Over the past decade, the country has demonstrated strong export performance, expanding industrial capacity, and a rapidly growing domestic market of more than 170 million people. Rising incomes and increasing urbanisation are gradually transforming Bangladesh from purely an export platform into an important emerging consumer economy.
Third, Bangladesh occupies a strategically important position in the Bay of Bengal. It is located near major maritime routes that connect South Asia, Southeast Asia, and the broader Indo-Pacific region. In this context, economic engagement with Bangladesh fits naturally with Indo-Pacific strategies. These strategies aim to strengthen supply chains and ensure stable trade routes.
Bangladesh is vital in global apparel supply chains. As the second-largest exporter of ready-made garments, it supplies much of the apparel sold in the US. US businesses need stable sourcing from Bangladesh.
Bangladesh’s structural advantages: Bangladesh possesses several structural advantages that could enable it to emerge as one of Asia’s most important manufacturing hubs by 2040 if current economic trends continue.
Bangladesh’s first advantage is its large, young workforce. This labour force can support manufacturing industries for decades.
The second advantage is Bangladesh’s existing industrial ecosystem. Thousands of factories, skilled production workers, logistics networks, and long-standing relationships with international buyers create a powerful manufacturing base. Few emerging economies can easily replicate this base.
Third, Bangladesh’s geographic location offers major trade advantages. Improvements in ports, economic zones, and transport networks continue. Bangladesh can then serve as a gateway for markets across South Asia, Southeast Asia, and the Indian Ocean region.
Finally, Bangladesh is diversifying its industries. Beyond garments, sectors like pharmaceuticals, leather goods, light engineering, agro-processing, and technical textiles are expanding.
Industrial complementarity: A long-term economic partnership can be built on the principle of complementary strengths rather than direct competition.
The US remains a global leader in advanced agriculture, high-technology manufacturing, industrial machinery, and medical innovation. Bangladesh, meanwhile, has developed strong competitive advantages in labour-intensive manufacturing industries, pharmaceuticals, and agro-processing.
Balanced trade architecture can therefore emerge in which:
• The US supplies technology, industrial machinery, agricultural inputs, and medical innovation
• Bangladesh supplies manufactured goods, value-added textiles, pharmaceuticals, and processed food products
Natural economic factors reinforce this complementarity. The long shipping distance between the two countries limits the competitiveness of many U.S. consumer goods in Bangladesh, while Bangladesh’s lower production costs strengthen its global competitiveness in labour-intensive manufacturing sectors.
NTB withdrawal with reciprocal commitment: Bangladesh will remove selected NTBS on-Tariff Barriers on imports from the United States in sectors that build Bangladesh’s productive capacity to speed up industrial upgrading and deepen economic cooperation.
These sectors include:
Agricultural inputs. Facilitating imports of high-quality soybeans, feed ingredients, wheat, and other agricultural inputs from the United States will improve productivity in Bangladesh’s poultry, aquaculture, and food-processing sectors.
Industrial machinery and manufacturing technology.Simplifying import procedures for advanced industrial equipment, manufacturing machinery, and energy technology will accelerate industrial modernisation and increase productivity across Bangladesh’s manufacturing sector.
Medical technology and specialised healthcare equipment.Streamlining regulatory procedures for advanced medical equipment and specialised pharmaceuticals will strengthen Bangladesh’s healthcare system and support improvements in public health infrastructure.
At the same time, Bangladesh will seek firm commitments from the United States. These commitments will help Bangladesh gain greater market access for exports in sectors where it is most competitive.
Expanding Bangladesh’s export base. Bangladesh can significantly expand exports to the United States through a targeted strategy focused on five high-potential sectors.
Technical and high-value textiles. Building on the success of the garment industry, Bangladesh can expand into advanced textile segments, including performance, industrial, and medical-grade textiles.
Footwear and leather goods. Bangladesh’s established leather industry provides a strong foundation for expanding exports of footwear, bags, and fashion accessories.
Light engineering and industrial components. The fast-growing light engineering sector can supply metal parts, bicycle components, electrical fittings, and mechanical parts to global supply chains.
Pharmaceuticals and generic medicines. Bangladesh’s pharmaceutical industry has developed strong manufacturing capabilities and has significant potential to expand exports of high-quality generic medicines.
Agro-processed food products. Bangladesh can increase exports of seafood, spices, ready-to-cook foods, and speciality processed food products to growing international markets.
These sectors can become new pillars of Bangladesh’s export economy. They will reduce reliance on a single industry and strengthen economic resilience.
Strategic outcomes: A carefully implemented NTB withdrawal strategy combined with export expansion could generate several long-term benefits for Bangladesh: (a) Diversification of exports beyond garments; (b) modernisation of domestic industries through technology imports; (c) stronger integration into global supply chains; (d) productivity gains in agriculture and manufacturing; (e) improved healthcare infrastructure; and (f) expansion of bilateral trade and investment.
Most importantly, this strategy can transform Bangladesh–US economic relations into a strategic partnership grounded in shared economic opportunities and complementary strengths.
END NOTE: Bangladesh’s future relies not just on protecting current industries. It also depends on our ability to compete, innovate, and grow in global markets. Strategic openness, guided by the national interest and careful planning, will speed up this transformation.
This policy direction is not about giving up national interest. Instead, it uses economic cooperation to strengthen Bangladesh’s industries, expand opportunities for workers, and secure prosperity for the nation.
Bangladesh has repeatedly demonstrated its resilience and determination to move forward. With clear strategy, confident leadership, and the collective strength of our people, the country can transform this moment of global change into a new era of national economic strength and prosperity.
Maj (Retd.) Mohd. Akhtaruzzaman, Former Member of Parliament (1991–1996, 1996–2001)
