Bangladesh signs deal with US to import 7,00,000 tonnes of wheat annually ahead of tariff talks

Time of India

6 days ago

Live Events
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
A Memorandum of Understanding (MoU) was signed between Bangladesh and the United States on Sunday to import 7,00,000 tonnes of high-quality wheat annually from the United States at competitive prices for the next five years.The deal was signed ahead of third-round tariff talks between Bangladesh and the US in the last week of July. The second round of talks were inconclusive after the US imposed conditions to increase certain security cooperation to sign a non-disclosure tariff deal. The US has already announced that it will continue joint military exercises with Bangladesh.The MoU to import wheat was signed by Md Abul Hasanat Humayun Kabir, Director General of the Food Department, on behalf of the Bangladesh government, and Joseph K. Sower, Vice President of the US Wheat Association, on behalf of the United States, in the presence of Bangladesh's Food Adviser, Ali Imam Majumdar.Speaking at the event, Food Adviser Ali Imam Majumder said that this MoU will create opportunities to build trust and create broader areas of mutual trade cooperation between Bangladesh and the United States, and the people of both countries will benefit."This MoU was signed between Bangladesh and the United States to ensure the overall food security, nutritional quality, and food supply of the country", the Bangladesh interim government said in a statement.The US, on the same day, announced that it will continue joint military exercises with Bangladesh."The Armed Forces of Bangladesh and the United States military will continue their longstanding partnership this summer through three joint exercises and the delivery of a new capability that will reinforce our common security interests. These efforts help to make the United States and Bangladesh stronger, and the region safer," the US Embassy in Dhaka said in a statement."For the fourth year in a row, the Bangladesh Army and U.S. Army Pacific will conduct Exercise Tiger Lightning. Through realistic training, our soldiers will develop readiness for counterterrorism, peacekeeping, jungle operations, medical evacuations and countering improvised explosive devices (IEDs)", it added."Tiger Shark (part of the Flash Bengal series) is a joint training exercise where our two countries' Special Forces practice combat tasks. The exercise, ongoing since 2009, will feature patrol boat handling and small arms marksmanship that will strengthen Bangladesh's Special Warfare Diving and Salvage and the Para Commando Brigade ability to respond to crises. One of the highlights of this combined exercise is the use of U.S. equipment by both countries", the statement said."Exercise Pacific Angel: This will be the fourth iteration of Pacific Angel with Bangladesh. It will highlight one of the hallmarks of our defense relationship, our C-130 fleets, which are critical in disaster response airdrops and air mobility operations. The exercise also focuses on Search and Rescue (SAR) and Aeromedical operations further developing Bangladesh's ability to respond to humanitarian disasters", the statement said."RQ-21 Program Launch: The United States is working with Bangladesh's Army and Navy to develop an Unmanned Aerial System (UAS) capability for Bangladesh. A Bangladesh Regiment comprised of Army and Navy personnel will operate the new RQ-21 Blackjack system. This joint effort will enable Bangladesh to monitor its maritime domain, secure its borders, and conduct peacekeeping missions", the statement said.On July 11, the three-day second-round tariff talks between Bangladesh and the United States ended without conclusion.Earlier, two days ahead of the July 9 deadline, US President Donald Trump issued a letter to Bangladesh, imposing a 35 per cent tariff. According to the letter, the tariff will take effect on August 1.