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Bangladesh signed a memorandum of understanding (MoU) with the United States to import 700,000 tonnes of wheat annually at competitive prices as it seeks to offset the impact of new tariffs imposed by the Trump administration.
The MoU was signed at the Ministry of Food on Sunday, the ministry said in a statement.
Bangladesh and the US have a trade deficit of $6.0 billion. In its latest trade salvo, the US has announced plans to impose a 35 per cent supplementary duty on products exported from Bangladesh, according to a bdnews24.com report.
Bangladesh wants to reduce this trade deficit by increasing imports of essential products from the US. In addition, diplomatic efforts are underway to come to an agreement that could limit or minimise the supplementary customs duties the Trump administration is imposing.
Currently, Bangladesh imports essential wheat from India, Russia, Belarus and other countries.
The Ministry of Food said that the MoU had been signed to ensure the overall food security, nutritional quality and food supply.
The agreement was reached to import 700,000 tonnes of high-quality wheat from the US annually at competitive prices for the next five years. On behalf of the Bangladesh government, Director General of Food Md Abul Hasanath Humayun Kabir and US Wheat Associates Vice President for South and Southeast Asia Joe Sowers signed the agreement on behalf of the US.
At the signing ceremony, Food Advisor Ali Imam Majumdar said, “This MoU will create an opportunity to build trust and create a broader area of mutual trade cooperation between Bangladesh and America. The people of both countries will benefit.”
US Ambassador to Bangladesh Tracey Ann Jacobson was also present for the occasion.