New Delhi, May 19: Concerns are rising in Bangladesh regarding the recent trade and defense agreements with the United States. A prominent article in Dhaka’s leading newspaper, ‘The Daily Star,’ compares these agreements to a “colonial economy” reminiscent of British rule.
In an article by Associate Professor Mohashida Sultana from Dhaka University, it is stated that the trade agreement with the US presents both opportunities and risks for Bangladesh. Under this agreement, Bangladeshi ready-made garments will gain entry into the US market with “zero duty,” meaning no tariffs. However, this comes with the condition that the cotton and fibers used in these products must be imported from the US.
The article highlights that Bangladesh’s garment industry has been built over years of hard work, investment, and skill. Yet, it is increasingly becoming dependent on American cotton and agricultural policies. Should the US alter its policies, reduce cotton supply, or impose new conditions, the impact could directly affect Bangladesh’s factories, workers’ jobs, and banking system.
The article draws parallels to the 19th-century trade model between Britain and India, noting that just as India was turned into a supplier of raw materials and a market for finished goods, Bangladesh is now being tied to US interests through conditions like “zero duty but using American cotton.”
Concerns are also raised regarding defense agreements. The article suggests that modern defense and trade agreements gradually make countries reliant on the US defense system. It indicates that Bangladesh is under pressure to acquire US surveillance systems, communication equipment, and weapons, while being encouraged to distance itself from Russia and China.
According to the article, this would make Bangladesh’s defense procurement dependent on US platforms, software, weapons, spare parts, and licensing arrangements, leading to a flow of foreign currency reserves towards American companies.
Moreover, there are worries about the expensive Boeing aircraft purchases from the US. Although marketed as “modern aircraft” and part of a “modern fleet,” these deals are based on long-term debt and leasing in dollars. Maintenance, software, training, and parts will also require prolonged dependence on the US.
The article notes that the cost of importing aircraft engines from the US has already surged from 13.7 billion taka to 185.2 billion taka. If passenger estimates prove incorrect or airlines incur losses, the burden of repaying these debts will fall on the general public and the nation’s economy. This scenario is described as a potential “debt trap” for Bangladesh.
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