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Bangladesh's interim government, led by Muhammad Yunus, is set to sign a trade deal with the US three days before the general elections, amid secrecy and controversy.

The interim government in Dhaka is looking to sign a deal with Washington just three days ahead of the general election scheduled on February 12, 2026. According to local/international media reports and first-hand accounts, Bangladesh's interim government is moving to seal a trade agreement with the United States just three days before the country heads to the polls on February 12, 2026. The timing of the proposed deal has sparked concern within Bangladesh’s business community, which has questioned both the urgency and the secrecy surrounding the negotiations. A report in Prothom Alo said there is little clarity on the contents of the draft agreement, with industry leaders and lawmakers kept largely in the dark. Trade tensions between Dhaka and Washington have been escalating over the past year. In April 2025, the US imposed a 37 per cent tariff on Bangladeshi goods. Following negotiations, Dhaka succeeded in reducing the tariff to 35 per cent in July and further to 20 per cent in August. The interim administration, headed by Nobel laureate Muhammad Yunus, subsequently signed a non-disclosure agreement (NDA) with Washington, restricting details of the ongoing talks from being shared with Parliament, the public and business stakeholders. According to Prothom Alo, the US has also pushed for additional commitments, including scaling back imports from China and increasing defence purchases from American suppliers.

A Bangladeshi economist and public intellectual, Anu Muhammad, commenting on the pre-election trade deal and the lack of clarity on its terms and timing. “There is no clear explanation for the urgency — why lease a port, import arms and sign subordination agreements with the United States just days before a national election? These decisions are being pushed in a completely non-transparent, illogical and irregular manner.” Another distinguished Fellow, Centre for Policy Dialogue (Bangladesh) Debapriya Bhattacharya,“Had the tariff agreement been signed after the election, political parties could have discussed it. It is also worth considering whether the hands of the incoming elected government are being tied.”— On concerns that the rushed deal limits democratic debate and may constrain future governments. Inamul Haque Khan, Senior Vice President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) commented “I was surprised to see the signing of the agreement come just three days before the election. I still believe this should have been done after the election, because it carries major implications.”

Notably, the reports come against the backdrop of the US announcing finalizing a trade deal with India, Dhaka’s closest neighbor but also a competitor for exports of some goods to global markets. A newly announced 18 per cent US tariff on Indian textile exports, revealed by President Donald Trump, is seen as giving India a competitive edge. Textiles account for nearly 96 per cent of Bangladesh’s exports to the US, valued at around $8 billion annually, making the outcome of the US-Bangladesh negotiations critical for Dhaka’s export-driven economy.

Even as India underscores a policy of conciliation and regional cooperation, invoking the ethos of “Sabka Saath, Sabka Vikas” in its domestic as well as diplomatic outreach, fresh strains in ties with neighboring Dhaka and Islamabad point to a widening trust deficit in the subcontinent. While New Delhi has sought to position itself as a stabilizing force—prioritizing connectivity, trade, humanitarian assistance and people-to-people engagement—both Bangladesh and Pakistan have, in recent months, hardened their rhetoric and postures on bilateral issues. The divergence highlights a complex regional dynamic in which India projects partnership and shared growth, even as sections of its neighborhood appear to respond with suspicion and political brinkmanship. Bilateral relations between New Delhi and Dhaka have remained under strain since the dramatic ouster of former Prime Minister Sheikh Hasina in August 2024. Hasina subsequently took refuge in India, a move that has become a diplomatic flashpoint, with Dhaka formally seeking her extradition. The political rupture has deepened ahead of Bangladesh’s February 12 general elections. Hasina’s Awami League, which ruled the country for 15 consecutive years before being toppled in a mass uprising, has been barred from contesting the polls — a decision that has further sharpened political tensions both domestically and in the region