Bangladesh, US cement trade relations with strategic wheat import pact

Bangladesh has inked a significant memorandum of understanding with US Wheat Associates to import 700,000 tons of American wheat annually over the next five years, marking a strategic shift in its grain procurement amidst looming tariff threats.

The agreement was formalized on July 20 between Bangladesh’s Directorate General of Food and the US trade group representing American wheat growers, said a statement from Bangladesh’s food ministry, Caliber.Az reports, citing foreign media.

Historically reliant on Russia and Ukraine for the majority of its wheat imports, Bangladesh’s move aims to diversify its supply sources and bolster economic ties with the United States. This development comes against the backdrop of escalating trade tensions, with Dhaka facing a potential 35 per cent tariff imposed by the US that threatens its vital garment industry.

According to the US Department of Agriculture’s foreign agency, Russia accounted for nearly 60 per cent of Bangladesh’s wheat imports in the 2024-25 season, with Ukraine, Canada, and Argentina also serving as key suppliers. The new agreement underscores Dhaka’s efforts to secure a stable wheat supply, which is crucial for domestic food security and economic stability.

Ali Imam Majumder, the interim government’s food adviser, emphasized the broader implications of the deal, stating, “This memorandum will create an opportunity to build trust and expand the scope for mutual trade co-operation between Bangladesh and the US, benefiting the people of both nations.”

The pact aligns with a growing trend in Asia, where several countries, including Vietnam and Indonesia, have recently committed to enhancing agricultural purchases from the United States. 

By Vafa Guliyeva