US signals stronger investment ties, reduced tariffs for Bangladesh

The United States has indicated a shift towards deeper economic engagement with Bangladesh, focusing on investment-led cooperation and reduced tariffs to strengthen bilateral trade.

United States Ambassador to Bangladesh Brent T Christensen made the remarks on Tuesday at a policy dialogue titled “Advancing US-Bangladesh Economic Partnership”, organised by the American Chamber of Commerce in Bangladesh (AmCham) in Dhaka.

He said Washington is moving away from a traditional aid-based approach towards a strategy centred on trade and investment. “Under President Trump’s leadership, we’re moving away from the failed policies of the past that tolerated distorted trading relationships that encouraged rent seeking and opaque markets, and toward a model that will deliver benefits for both our people,” he said. “A policy that emphasises trade over aid, investment over assistance, and a genuine partnership that creates opportunities for both our nations.”

The ambassador highlighted the proposed Agreement on Reciprocal Trade (ART) as a key mechanism to advance economic ties. Under this framework, Bangladesh would retain access to the US market at a reduced tariff rate of 19%, compared with 35% in the absence of such an arrangement.

In exchange, Bangladesh is expected to reduce non-tariff barriers and increase imports of US goods to help address trade imbalances, he added.

Christensen also noted that Bangladesh has committed to importing US agricultural products worth $3.5bn, including wheat, soybeans, cotton and corn. He told US wheat has lower spoilage rates than alternative sources, improving supply efficiency.

While acknowledging Bangladesh’s economic potential, strategic location and growing workforce, he stressed the importance of reforms to attract greater foreign investment. These include ensuring contract enforcement, maintaining a predictable and transparent policy environment, and modernising business practices.

“Trust requires that contracts be honoured,” he said, calling for reduced regulatory opacity, lower tax burdens and non-discriminatory licensing systems.

He further emphasised the need to digitalise customs procedures, protect intellectual property rights, and comply with international labour and environmental standards.

Highlighting the digital economy, Christensen said a large share of transactions in Bangladesh remains cash-based, presenting opportunities for expansion of digital financial services by firms such as Visa and Mastercard.

He also pointed to growing interest from major US technology companies, including Starlink, Google Pay and Microsoft, in Bangladesh’s digital ecosystem.

Beyond the technology sector, the United States has expressed readiness to support Bangladesh in modernising infrastructure such as railways, ports and civil aviation, offering expertise in logistics, safety and system management.

In his closing remarks, the ambassador invited the business community to participate in events marking the 250^th anniversary of the United States, including an “America Week” scheduled for July. He said the bilateral relationship is entering a new phase focused on expanding trade and achieving shared prosperity.