Bangladesh

Bangladesh held its first elections in 7 years, in December 2008 and the Awami League won a landslide victory in these elections. The new Government of Bangladesh (GOB) is headed by Prime Minister Sheikh Hasina of the Awami League.

According to the International Monetary Fund (IMF), Bangladesh’s economy has averaged a growth rate of 6 percent over the last six years, with estimated growth of 5.6 percent in 2008. One of the most densely populated nations in the world, Bangladesh’s per capita GDP is approximately $525. Bangladesh is currently our 64th largest trading partner with $4.2 billion in total (two-way) trade during 2008. U.S. exports to Bangladesh totaled $468 million, while U.S. imports from Bangladesh totaled $3.7 billion, mainly apparel.  The U.S. merchandise goods trade deficit with Bangladesh was $3.3 billion in 2008.

In 2008 and 2009, USTR officials met with high-level Bangladeshi officials to discuss market access, investment and labor-related issues. The United States has repeatedly raised concerns with the GOB regarding possible changes in rules that currently allow international shipping companies to operate as 100 percent foreign-owned companies in Bangladesh. U.S. officials have stated that such a policy would have a negative effect on foreign investment in Bangladesh by creating uncertainty and imposing increased costs on local apparel exporters. The United States and Bangladesh signed a Bilateral Investment Treaty in July 1989.

In 2006, USTR accepted a Generalized System of Preference (GSP) new country practice petition from the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) regarding worker rights in Bangladesh. The petition alleged a number of labor practice problems in: the Expert Processing Zones; the ready-made garments sector; and the shrimp processing sector.  The petition is still under review and in April 2009, a high-level delegation from Bangladesh, along with private sector representatives from the garment, apparel, and shrimp sectors, testified before the GSP Subcommittee regarding improvements in the labor environment.  The AFL-CIO also testified on the labor concerns cited in the petition.  USTR is currently undertaking a careful evaluation of country progress on matters raised in the petition and will make a decision on Bangladesh’s GSP eligibility later this year.

U.S.-Bangladesh Trade Facts

Bangladesh is currently our 64th largest goods trading partner with $4.2 billion in total (two way) goods trade during 2008. Goods exports totaled $468 million; Goods imports totaled $3.7 billion. The U.S. goods trade deficit with Bangladesh was $3.3 billion in 2008.

Exports

Bangladesh was the United States' 97th largest goods export market in 2008.

U.S. goods exports to Bangladesh in 2008 were $468 million, up 2.7% ($12 million) from 2007 and up 102% from 1994 (the year prior to Uruguay Round).

The top export categories (2-digit HS) in 2008 were: Cotton, Yarn and Fabric ($102 million), Machinery ($62 million), Electrical Machinery ($59 million), Iron and Steel Products ($46 million), and Cereals (wheat) ($37 million).

U.S. exports of agricultural products to Bangladesh totaled $173 million in 2008. Leading categories include: cotton ($101 million), and wheat ($37 million).

Imports

Bangladesh was the United States' 54th largest supplier of goods imports in 2008.

U.S. goods imports from Bangladesh totaled $3.7 billion in 2008, a 9.2% increase ($316 million) from 2007, and up 247% over the last 14 years.

The five largest import categories in 2008 were: Woven Apparel ($2.4 billion), Knit Apparel ($942 million), Fish and Seafood (shrimp and prawn) ($129 million), Miscellaneous Textile Products ($110 million), and Headgear ($88 million).

U.S. imports of agricultural products from Bangladesh totaled $10 million in 2008.

Trade Balance

The U.S. goods trade deficit with Bangladesh was $3.3 billion in 2008, a 10.2% increase ($304 million) over 2007.

Investment

U.S. foreign direct investment (FDI) in Bangladesh (stock) was $218 million in 2007 (latest data available), a 20.4 percent increase from 2006.

Bangladesh's FDI in the United States (stock) was $1 million in 2007 (latest data available), down from $2 million in 2006.