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Bangladesh Stands Firm on State Continuity Amid U.S. Trade Review

4 മിനിറ്റ് വായിച്ചു
by Asif Showkat Kallol (Dhaka Bureau)

Amid shifting geopolitical dynamics and domestic legal challenges, the Government of Bangladesh has reaffirmed its commitment to bilateral trade agreements with the United States. Trade Minister Khandaker Abdul Muktadir emphasized that international state-level treaties cannot be unilaterally dissolved at will, as they represent institutional continuity that transcends political changes.

The Minister’s remarks followed a high-level meeting in Dhaka on Tuesday with Brendan Lynch, the Assistant United States Trade Representative (AUSTR) for South and Central Asia.
The discussions come at a time of growing domestic debate and legal scrutiny regarding a recently executed trade framework with the U.S. Critics have raised concerns over its potential impact on national sovereignty and economic autonomy. Addressing these concerns, Minister Muktadir stated, ‘State contracts are fundamentally different from private agreements. They are not the agenda of a specific government but a part of institutional continuity. These treaties cannot be canceled on a whim.’
He further noted that while the current administration was not the original architect of the framework, it has inherited it as a matter of state succession and intends to leverage the agreement to expand trade and investment ties.
Describing the agreement as a ‘win-win’ framework for both nations, the Minister urged stakeholders not to harbor ‘unnecessary concerns.’ However, the meeting also addressed a recent U.S. investigation into certain trade practices.
Dhaka has officially sought clarification from Washington regarding this move. The Minister noted that under the provisions of the existing framework, such investigative actions could have been avoided through prior consultation.
Minister Muktadir firmly rejected allegations of unfair trade practices, such as ‘overcapacity’ or ‘dumping’ (exporting goods at prices lower than the home market). Key highlights of his defense included:

Production Capacity: Bangladesh does not possess excess production capacity that would threaten international markets.
Import Dependency: The country remains heavily reliant on imports for many essential sectors.
Labor Standards: The Ready-Made Garment (RMG) sector- Bangladesh’s primary export engine- strictly adheres to international standards. ‘There is no scope for child labor or violations of labor laws in this sector,’ the Minister asserted.

Regarding calls for a total review or withdrawal from the treaty, the Minister highlighted that the agreement contains internal mechanisms to address grievances. He described these as ‘self-correcting elements’ that allow for the adjustment of any clause found to be contrary to national interests. He argued that renegotiation through dialogue is a more constructive path than complete withdrawal.
This stance reflects Dhaka’s broader strategy to maintain economic stability and attract Foreign Direct Investment (FDI) by securing its relationship with Washington. By emphasizing state continuity, the government aims to project itself as a reliable international partner while navigating internal criticism and external pressures.
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The Author:
Asif Showkat Kallol: Works for a German-based online outlet, The Mirror Asia, as Head of News and is a Contributor, Pressenza- Dhaka Bureau.

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