Bangladesh Economy

This is the full text of the agreement


A certain country with "non-market economy" might not be too happy about these terms. Also, Bangladesh has agreed to buy more defense equipment from the US and limit defense purchases from unspecified "certain countries ". I wonder which these are.

I must commend Yunus Sahab for having taken a bullet for the team by signing this deal , which would otherwise have become a hot potato for the incoming government.
 
RamBharose said:
This is the full text of the agreement


A certain country with "non-market economy" might not be too happy about these terms. Also, Bangladesh has agreed to buy more defense equipment from the US and limit defense purchases from unspecified "certain countries ". I wonder which these are.

I must commend Yunus Sahab for having taken a bullet for the team by signing this deal , which would otherwise have become a hot potato for the incoming government.
Click to expand...

You give some to take some. But no one here will call this a "bad deal" or "surrender"!
Anyhow, this at best would preserve existing market share. I doubt there will be gain. Real competitor at the moment is Vietnam and China.
 
Thinking said:
You give some to take some. But no one here will call this a "bad deal" or "surrender"!
Anyhow, this at best would preserve existing market share. I doubt there will be gain. Real competitor at the moment is Vietnam and China.
Click to expand...
Ram ram ji,

You are right that both countries have to compromise for a win and the terms for Bangladesh are not substantively different from those agreed to with other cou countries. I expect other countries that have yet to sign detailed agreements, like India and Pakistan, will also have similar terms. However, a substantial difference is that India is not a major purchaser of Chinese defense equipment or a BRI partner. India does have a substantial economic relationship with China, but that is largely transactional and China is certainly not a geopolitical benefactor towards India. In fact, unlike with countries that see China as an ally, there is strategic alignment between India and the US in wanting to see global supply chains become much less dependent on China.
 
RamBharose said:
Ram ram ji,

You are right that both countries have to compromise for a win and the terms for Bangladesh are not substantively different from those agreed to with other cou countries. I expect other countries that have yet to sign detailed agreements, like India and Pakistan, will also have similar terms. However, a substantial difference is that India is not a major purchaser of Chinese defense equipment or a BRI partner. India does have a substantial economic relationship with China, but that is largely transactional and China is certainly not a geopolitical benefactor towards India. In fact, unlike with countries that see China as an ally, there is strategic alignment between India and the US in wanting to see global supply chains become much less dependent on China.
Click to expand...
जय श्री राम ।
Now that Bangladesh has signed a strategic agreement with the USA on the export of textiles and garments made from US produced cotton and synthetic fibers, how will that effect the export of Indian cotton to Bangladesh affecting cotton growing regions in Gujarat?
Ravish Kumar has a comprehensive report on this aspect:

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For more detailed information, see our cookies page.
 
Last edited:
@Baibers_1260

Ram Ramji,

how will that effect the export of Indian cotton to Bangladesh affecting cotton growing regions in Gujarat?

The answer may be found in simple mathematics. The total amount of cotton supplied and the total amount of cotton demanded won't change in a hurry. If US supplies more cotton to BD, the obviously it has to vacate some markets (since its cotton output won't change overnight), which will be captured by Gujarat.

Regards

PS: What will be the impact of the US-BD deal on Pak's textile and cotton industry? Although you would be the wrong person to ask since you don't seem to be interested at all in your economy.
 
SoulSpokesman said:
If US supplies more cotton to BD, the obviously it has to vacate some markets (since its cotton output won't change overnight), which will be captured by Gujar
Click to expand...

Your ignorance is profound.
The USA obviously signed that deal knowing it could meet Bangladesh's cotton and fibre demands.. Bangladesh's import requirements are 8.4 million bales and the USA produces 14.3 million bales. Brazil has overtaken India as the largest supplier of cotton to Bangladesh, So the US preferential tariffs are likely to hit both Brazil and India.

For your education:
( Note: I obtained the data below while squatting in my madarsah)

Overview



Fall 2025 Cotton Production and Market Outlook - Ag ...
Based on late 2025 USDA forecasts, U.S. cotton production for the 2025/26 season is projected at approximately 14.3 million 480-pound bales, a slight 1% decrease from the 2024/25 crop. Harvested area is estimated at 7.4 million acres (down from 7.8 million the previous season) with improved yields of 929 pounds per acre. The Southwest shows increased production, while Southeast output is projected to decline.

Bangladesh cotton imports

Bangladesh is the world's top cotton importer, projected to import 8.4 million bales in Marketing Year (MY) 2025/26 to support its massive garment sector. Due to strategic shifts, Brazil has overtaken India as the primary supplier, followed by India, West Africa, and the US. Imports are expected to rise due to higher demand for ready-made garments.
 
SoulSpokesman said:
What will be the impact of the US-BD deal on Pak's textile and cotton industry? Although you would be the wrong person to ask since you don't seem to be interested at all in your economy
Click to expand...
Very severe, but compensated by liberal grants for updates to our F-16 fleet and 1000 AMRAAM missles which are FAR more important for our existential fight against the Hindutva savagery.
But you would be the wrong person to discuss this because your ignorance about my country's priorities is stark
 
SoulSpokesman said:
No. The only thing I have guessed is that you are heavily traumatised by the HIndu.
Click to expand...
I think you have inserted the quote from the wrong thread .
What exactly do you mean by "heavily traumatized by the Hindu "
There aren't that many Hindus around where I live so getting "traumatized " is a remote possibility. In fact "the Hindu" might get traumatized because of me. 😂

But your humor is deeply appreciated
 
Baibers_1260 said:
जय श्री राम ।
Now that Bangladesh has signed a strategic agreement with the USA on the export of textiles and garments made from US produced cotton and synthetic fibers, how will that effect the export of Indian cotton to Bangladesh affecting cotton growing regions in Gujarat?
Ravish Kumar has a comprehensive report on this aspect:

To view this content we will need your consent to set third party cookies.
For more detailed information, see our cookies page.
Click to expand...

Ram ram ji,

I apologize that I will reply without watching the video because Ravish Kumar Sahab's views are as predictable as Arnab Goswami ji's and one doesn't have to actually listen to their videos to know what they are going to say about certain subjects.

As I have stated earlier in the thread, India , like Pakistan, has not yet signed the detailed trade agreement with the US that Bangladesh has. In my assessment, both Pakistan and India will get similar tariff exemptions on textile exports that use American cotton and man made fibre when their respective detailed trade agreements are finalized, simply because it is in the interest of American farmers that as many countries as possible are incentivized to import American cotton. Therefore, any celebration or gloom at this stage may be premature.

Of course, my assessment may turn out to be incorrect and I will own it if it does, but at this point, I have nothing more to say on the matter.
 
This is a good summary of the terms of the deal from The Daily Star

www.thedailystar.net

US tariff cut comes at a steep cost

Bangladesh secures a marginal US tariff cut to 19%, but commits to billions of dollars in purchases
www.thedailystar.net www.thedailystar.net

The US will likely push for similar terms with India and Pakistan. It would be interesting to see whether these countries show more or less resistance than Bangladesh.
 
@Ram Bharose

Ram Bharoseji Ram Ram ji,

because Ravish Kumar Sahab's views are as predictable as Arnab Goswami ji's

A better comparison of Ravish Kumar ji would be with Retd Major Adil Raja sahab. Ravishji's views are as respected in IND as Raja sahab's views are in PAK.

Regards
 
Some more press coverage on the trade deal

www.thedailystar.net

Unequal, rushed and risky

A trade agreement signed between Bangladesh and the United States on February 9, just days before a national election, has drawn sharp criticism from economists and policy observers.
www.thedailystar.net www.thedailystar.net

www.thedailystar.net

A deal done in the dark – almost

Bangladesh’s recently signed trade deal with the United States promises slight tariff relief but carries deeper implications for fiscal stability, foreign policy and democratic transparency, according to Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD).
www.thedailystar.net www.thedailystar.net
 
www.thedailystar.net

Why the trade agreement with the US is problematic

No other South Asian country that has been subjected to reciprocal tariffs has signed such an agreement with the US so far.
www.thedailystar.net www.thedailystar.net

There seems to be near unanimity that the trade deal Yunus Sahab left behind as a parting gift is not a good one for Bangladesh. Will Tarique Sahab try to renegotiate it or is Bangladesh stuck with it ?
 
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