Last Updated on May 3, 2026 10:08 pm by BIZNAMA NEWS
Zakir Hossain from Dhaka
The United States overtook India as Bangladesh’s second-largest trading partner in January, driven by a rise in imports from the world’s largest economy.
China continued to dominate Bangladesh’s trade, but the shift highlights changing import patterns and growing economic ties with the US. Analysts, however, said it was not yet clear whether the trend would continue, as US and India trade volumes with Bangladesh remain closely matched.
India had consistently remained Bangladesh’s second-largest trading partner, but slipped to third place in January. During the month, the US accounted for 9.28% of Bangladesh’s total trade, compared with India’s 7.91%. China remained on top with 17.82%.
In value terms, Bangladesh’s trade with the US stood at Tk 146.86 billion, or about $1.2 billion, while trade with India was Tk 125.08 billion, or $1.02 billion. China’s trade volume reached Tk 281.94 billion, or $2.3 billion. The exchange rate used was $1 = Tk 122.97.
Policy Research Institute chairman Zaidi Sattar said rising imports from the US were reshaping Bangladesh’s trade balance. “In my view, imports from the US are increasing steadily,” he said.
He added that growing purchases of liquefied petroleum gas and other commodities were driving the shift, while Bangladesh had scope to expand imports further, especially in energy and cotton.
Sattar also highlighted a new US cotton policy introduced in 2025, under which countries using US-origin cotton in manufacturing would qualify for zero-tariff access when exporting finished goods to the US. “If Bangladesh imports cotton worth $1.0 billion from the US, it could secure duty-free export opportunities of an equivalent value,” he said.
He added that US cotton is machine-picked, unlike Indian and Pakistani cotton, which is mostly hand-picked.
Policy Exchange Bangladesh chairman and CEO Masrur Reaz said the trend was encouraging as it showed deeper trade ties with a Western economy and gradual diversification of Bangladesh’s import sources. However, he said Bangladesh also needed to tap trade benefits from South Asian economies, particularly Pakistan, India and Sri Lanka.