Bangladesh is set to import around $15 billion worth of energy products next 15 years from the United States, including liquefied natural gas (LNG), liquefied petroleum gas (LPG) and petroleum products, following the signing of the Agreement on Reciprocal Trade (ART) between the two countries.
Initially, the government plans to import 16 LNG cargoes from Excellerate Energy this year at an estimated cost of Tk 7,500 crore, officials confirmed.
Power and Energy Adviser Muhammad Fouzul Kabir Khan told Just Energy News that the government intends to begin LNG and LPG imports during the initial phase of the agreement.
“We have not held specific discussions about the import volumes. This is non-binding. The process remains unchanged, as any purchase will require approval from the Cabinet Committee on Public Purchase. These figures are estimates of potential imports from the US,” he said.
He added that all existing procedures for imports and procurement would remain unchanged.
Energy and Mineral Resources Division Secretary Mohammad Saiful Islam said the government expects to import 16 LNG cargoes under a long-term agreement with US-based company Excellerate Energy. He added that the ministry would seek to secure more long-term energy deals in the coming months to reduce costs.
Islam also said the government had saved a significant amount of foreign exchange under the current procurement process.
Meanwhile, Commerce Adviser Sk Bashir Uddin described the signing of the ART as a pivotal milestone in bilateral relations, according to a report by Bangladesh Sangbad Sangstha (BSS).
“The agreement will serve as a powerful magnet for international investment while cementing Bangladesh’s position as a key strategic partner in the Indo-Pacific region,” he said at a press conference at the Ministry of Commerce.
The Government of Bangladesh formally signed the landmark agreement with the US on Monday night, concluding nine months of high-level negotiations led by the Ministry of Commerce in coordination with the National Board of Revenue, the Bangladesh Embassy in Washington and other ministries.
The talks were initiated after the United States imposed reciprocal tariffs on Bangladeshi exports in April 2025. Following negotiations with the Office of the United States Trade Representative, Bangladesh secured a reduction in the reciprocal tariff rate to 19 per cent.
Bashir said the ART forms a cornerstone of the interim government’s strategy to modernise the economy and deepen integration into global value chains. By creating a predictable and transparent trade environment, the agreement is expected to attract high-value foreign direct investment and enhance trade facilitation.
The ART covers a broad range of areas, including trade in goods and services, customs procedures, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, investment, e-commerce, government procurement, intellectual property rights, labour, the environment, competition, subsidies, state-owned enterprises, transparency and cooperation.
The agreement also includes a special provision for textiles and apparel, introduced by the United States following Bangladesh’s request. Under this clause, a specified volume of Bangladeshi textile and garment exports will qualify for a zero reciprocal tariff rate, provided US-produced textile inputs such as cotton and man-made fibres are used.
“This provision is unique and not included in similar US agreements with other countries. To fully benefit, Bangladesh will need to strengthen backward linkages and raw material supply in the textile sector,” Bashir said.
The ART further provides duty-free access for selected pharmaceutical and agricultural products from Bangladesh, helping to diversify exports beyond the apparel sector.
Bangladesh has also secured flexibility in digital trade, as it will not be required to consult the United States before entering into digital trade agreements with third countries.
Under the agreement, rules of origin will be developed in consultation with Bangladesh, safeguarding its production structure and export capacity.
In return, Bangladesh has offered substantial market access for US goods, including phased tariff reductions over five or ten years — an approach officials say is not common in comparable agreements.
The agreement also includes commitments on labour standards, environmental protection, transparency and governance, along with a termination clause incorporated at Bangladesh’s request.