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U.S.-Bangladesh Relationship Focused on Trade, Suggests Michael Kugelman

Americans demand a trade agreement with Bangladesh, threatening a 37% tariff if negotiations fail, according to foreign affairs specialists.

D.C. Focuses Relationship with Dhaka Primarily on Trade: Michael Kugelman's Perspective
D.C. Focuses Relationship with Dhaka Primarily on Trade: Michael Kugelman's Perspective

U.S.-Bangladesh Relationship Focused on Trade, Suggests Michael Kugelman

In a significant development, a follow-up meeting is scheduled to take place in the US on 8 July, as the government of Bangladesh seeks to address the ongoing tariff issue with the US government. This meeting comes after a phone call between Professor Muhammad Yunus, a renowned Bangladeshi economist, and US Secretary of State Marco Rubio, which affirmed a shared commitment to deepening economic ties between the two nations.

During their conversation, Yunus and Rubio also discussed strengthening economic ties and enhancing security in the Indo-Pacific, with a focus on countering China for the US. This shift in the US approach to its relationship with Bangladesh is evident when compared to the Trump administration's policy.

Under the Biden administration, the US has pursued a values-based foreign policy towards Bangladesh, emphasizing democratic principles, human rights, and free and fair elections. The Biden administration has pledged new development aid and technical assistance aimed at supporting democratic reforms, particularly during Bangladesh's interim government phase following political unrest.

In contrast, the Trump administration significantly cut foreign aid to Bangladesh and showed little interest in democracy promotion or nation-building in the country. Its approach reframed relations primarily through the lens of trade and great-power competition, particularly countering China's influence in the Indo-Pacific region.

The key difference is that the Biden administration actively engages in democracy promotion and development aid, using a values-oriented policy, while the Trump administration deprioritized aid and democracy support, focusing more on economic and strategic interests and adopting a more transactional relationship with Bangladesh.

The emergency meeting held by Professor Yunus in April, involving top experts, advisers, and officials, indicates a proactive approach by the Bangladesh government to address the US tariff issue. The ongoing discussions between the US and Bangladesh governments suggest a focus on economic and security issues in their relationship.

The telephone conversation between Yunus and Rubio offers a glimpse into how the United States may approach its relationship with Bangladesh, which has significantly shifted since Trump returned to office. This shift is also reflected in the Biden administration's pledge of aid and technical assistance, marking a clear departure from the Trump administration's approach.

Bangladesh, with its long-standing nonaligned foreign policy, aims to balance ties with major powers rather than siding with or against them. The US-Bangladesh relationship, therefore, holds potential for further growth and cooperation, particularly in areas of economic development, security, and democracy promotion.

Politics surrounding policy-and-legislation has primarily focused on economic ties and security issues in the US-Bangladesh relationship, as shown in the recent discussions between Professor Muhammad Yunus and US Secretary of State Marco Rubio. The Biden administration's approach to foreign policy towards Bangladesh includes a commitment to values-based diplomacy, emphasizing democratic principles, human rights, and free and fair elections, markedly different from the Trump administration's transactional relationship with Bangladesh, which prioritized economic and strategic interests over democracy promotion.

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