Dhaka [Bangladesh], July 21: Bangladesh and the United States have signed a Memorandum of Understanding (MoU) for the annual import of 700,000 tonnes of high-quality wheat over the next five years, marking a significant development in bilateral trade and food security cooperation.
The agreement was signed ahead of the third round of tariff negotiations between the two nations, set to begin in late July. The second round of talks concluded inconclusively, with the US tying tariff concessions to increased security cooperation. Notably, the US has already announced the continuation of joint military exercises with Bangladesh.
Wheat Deal Aims to Boost Food Security
The MoU was signed by Md Abul Hasanat Humayun Kabir, Director General of Bangladesh’s Food Department, and Joseph K. Sower, Vice President of the US Wheat Association. Bangladesh’s Food Adviser Ali Imam Majumdar witnessed the signing.
“This MoU will ensure overall food security, improve nutritional standards, and strengthen food supply chains in Bangladesh,” said the interim government in an official statement.
Majumdar added that the agreement would enhance mutual trust and open up broader areas of trade cooperation between the two nations.
Strengthening Military Ties
Simultaneously, the US Embassy in Dhaka confirmed that joint military activities between the two countries would continue, reinforcing shared security interests in the region.
Key military initiatives include:
- Exercise Tiger Lightning: A counterterrorism and peacekeeping drill in partnership with the US Army Pacific.
- Tiger Shark: A joint Special Forces training exercise involving boat handling, small arms use, and crisis response.
- Exercise Pacific Angel: A humanitarian-focused mission including disaster relief simulations and aeromedical operations.
- RQ-21 Program Launch: Introduction of the RQ-21 Blackjack Unmanned Aerial System (UAS) for Bangladesh’s Army and Navy to improve maritime surveillance, border security, and peacekeeping missions.
Trade Tensions Remain
Despite growing cooperation in food and defense, trade tensions persist. The second round of tariff talks earlier this month ended without resolution. On July 9, just before the deadline, former US President Donald Trump issued a letter announcing a 35% tariff on Bangladeshi goods, effective August 1.
The wheat import deal, though a positive development, comes amid this backdrop of unresolved trade friction and heightened diplomatic complexity.