Bangladesh Approves U.S. Wheat Imports, Hoping to Ease Trade Tensions

By Ruma Paul

DHAKA, Oct. 7 (Reuters) – Bangladesh has approved the purchase of about 220,000 metric tons of U.S. wheat under a government-to-government deal aimed at easing trade tensions with Washington after import tariffs were imposed by U.S. President Donald Trump’s administration.

The Cabinet Committee on Government Purchase cleared the deal on Tuesday, officials said. The wheat, priced at $308 per ton, will be supplied through Agrocorp International, a Singapore-based trading house authorized by U.S. Wheat Associates, according to official documents.

The agreement follows a memorandum of understanding signed in July for Bangladesh to import 700,000 metric tons of wheat annually from the United States over the next five years as part of efforts to diversify grain sources and strengthen trade ties.

The South Asian country currently depends heavily on lower-cost wheat from the Black Sea region while importing smaller volumes of higher-grade grain from the United States and Canada for blending and quality enhancement.

Until the Trump administration dismantled USAID this year, Bangladesh had also received U.S. wheat and other grains as food aid.

Officials said the latest deal is part of a broader strategy to reduce Bangladesh’s $6 billion trade deficit with the United States and seek more favorable treatment for key export items – particularly ready-made garments, which dominate the country’s shipments to the U.S.

Bangladesh has secured a reduction in U.S. tariffs on its exports to 20%, down from the 37% initially proposed by Washington, offering much-needed relief to the nation’s apparel exporters.

Alongside the wheat purchases, Dhaka is expanding imports of agricultural products such as soybean and cotton, and has ordered 25 aircraft from Boeing.

The committee also approved the purchase of 50,000 metric tons of rice from an Indian trader at $359.77 per ton through an international tender as it battles to control prices of the staple grain.

(Reporting by Ruma Paul; Editing by Kim Coghill)