Bangladesh ready to buy more US cotton, oil to reduce trade gap: Yunus

Bangladesh is prepared to ramp up its imports of American cotton, oil and gas in a bid to narrow the trade gap with the United States and offset the potential impact of proposed tariffs, Chief Adviser Muhammad Yunus has said.

Speaking to Nikkei Asia on the sidelines of the Future of Asia conference in Tokyo today (30 May), Yunus revealed that the offer to boost purchases of US commodities will form part of Dhaka's strategy in trade negotiations with the Trump administration, as Bangladesh faces the threat of a 37% tariff on its exports to the US.

"President Donald Trump is aiming to reduce his country's trade deficit with each partner," Yunus told Nikkei Asia. "If the offer to buy more American commodities is accepted, Bangladesh will divert the flow of similar imports from other countries."

He explained that Bangladesh buys cotton from Central Asia, India, and many other countries. "We are now looking…why don't we buy it from the US, so our trade deficit with the US will go down very big?"

In the last fiscal year ending June, Bangladesh exported $6.8 billion worth of goods to the US, while importing $2.5 billion. Of the imports, cotton accounted for $361 million. 

As one of the world's leading garment exporters, Bangladesh annually imports $7.9 billion worth of raw cotton – much of it from Uzbekistan, Turkmenistan, and India. Cotton made up 12.5% of Bangladesh's total imports last year.

"Cotton producers in the US have become very good friends of ours," Yunus said, noting that the support of these producers provides "some political access to the administration."

He added, "America's Cotton Belt (states) elect their members of Congress, in the House and in the Senate, so they become our supporters."

Bangladesh also relies heavily on energy imports, particularly oil from the Middle East. However, Yunus indicated that this too could shift towards the US, as Dhaka seeks to rebalance its trade relationship with Washington.

Though a timeline for the proposed trade discussions has yet to be confirmed, Yunus remained optimistic about the diplomatic challenge. "We see the situation not as a kind of a threat; we see it as an opportunity," he said.

His comments came just a day after the US Court of International Trade blocked the Trump administration's proposed tariffs from taking effect, stating that the president does not have the authority to override Congress in matters of commerce.

On domestic issues, Yunus spoke about financial crimes under the previous administration, claiming that approximately $234 billion had been laundered abroad during Sheikh Hasina's tenure.

"$11-12 billion worth of money inside Bangladesh already has been identified and attached and frozen," Yunus said, adding that the interim government plans to use the recovered assets to launch two sovereign wealth funds dedicated to education, healthcare, and youth entrepreneurship.

"These funds will transform the lives of the poor," he said.

When asked about recent reports suggesting he might step down if political consensus over reforms and an election roadmap fails, Yunus was measured in his response.

"I have not answered that question in Bangladesh," he said. "Since I didn't say it in Bangladesh, if I say it in Japan, that will create a lot of trouble for me."