Rubio calls Yunus, discusses economic ties as US tariff negotiation goes on

US Secretary of State Marco Rubio held a telephone conversation with Bangladesh Chief Adviser Muhammad Yunus yesterday to discuss economic and security ties between the two countries.

The call comes at a critical time, as the two countries are currently negotiating a reciprocal tariff agreement. The discussions follow recent negotiations as both nations have yet to agree on trade terms.

Diplomats and exporters said the call indicates the US is interested in trade with Bangladesh and Dhaka should pursue a common ground.

In a statement, Chief Adviser's Press Secretary Shafiqul Alam said, "The 15-minute discussion was warm, cordial, and constructive, reflecting excellent bilateral engagement between the two nations."

What they talked about

Rubio held a telephone conversation with Yunus at 7:30 pm on Monday, said the Chief Adviser's Press Wing. 

During the call, both leaders discussed issues of mutual interest, including Bangladesh's trade talks with the United States, ongoing reforms process, transition to democracy, upcoming general election and aid for Rohingya refugees. 

Secretary Rubio expressed support for Bangladesh's reform agenda and its move to hold elections early next year.

Highlighting that the US is Bangladesh's largest export destination and top source of remittances, both leaders expressed hope for concluding talks on tariffs soon, paving the way for increased bilateral trade.

CA Yunus mentioned that his National Security Adviser recently had an excellent meeting with Deputy Secretary of State Landau in Washington, DC, and emphasised their commitment to strengthening bilateral bonds.

Chief Adviser Yunus also thanked US President Trump for responding positively to his request to suspend reciprocal tariff measures on Bangladesh for 90 days, adding, "We are working with your officials to finalise a package of measures to effectively respond to President Trump's trade agenda."

Seeking US support for the country's democratic transition, Chief Adviser Yunus reaffirmed that elections would be held "in the early part of next year" and that ongoing dialogue between his government and political parties would result in much-needed reforms of the country's political system. 

He noted, "The Election Commission is working hard to reorganize the electoral system, which was destroyed by the previous government. Our young people will vote for the first time in their lives."

The chief adviser commended Washington for its continued generous support to Rohingya refugee. The US has been the top donor to the Rohingya humanitarian responses since 2017.

"The prospect for a viable solution and repatriation of Rohingyas back to Myanmar is now better than ever before and Bangladesh is working on that," Yunus said.

The two leaders also touched upon geopolitical issues, including the need for a stable and peaceful Indo-Pacific region and Bangladesh's relationships with its neighbors. 

Chief Adviser Yunus invited Secretary Rubio to visit Bangladesh ahead of the general election to witness the country's transition to democracy firsthand, stating, "It will inspire our young people." 

What officials say

US Department of State Spokesperson Tammy Bruce in a post on X said, "Secretary of State Marco Rubio spoke today with the Chief Adviser of Bangladesh's Interim Government, Dr Muhammad Yunus.

"The secretary and chief adviser affirmed their shared commitment to deepening economic ties between the United States and Bangladesh and to enhancing security and stability throughout the Indo-Pacific region."

Former ambassador to the US M Humayun Kabir told The Business Standard that a final decision was expected in Washington this week, but both sides appear to have failed to reach consensus.

"In that context, the US Secretary of State may have called as a form of consultation, likely to ensure we don't feel alienated or upset," he said.

Humayun believes the US initiative indicates unease in Washington. "They likely sensed our dissatisfaction. The call was meant to reaffirm their economic interest while reiterating their broader Indo-Pacific strategic goals."

On the tariff issue, he said the two governments remain far apart. "The Trump administration appears intent on unilaterally reshaping the global trade landscape. If we argue solely from the standpoint of global norms, that may not appeal to them. We must align our approach with their thinking to find common ground."

Kabir warned of a possible 17% additional tariff on Bangladeshi exports. "If it exceeds 15.5%, it would be a serious concern and make our exports significantly less competitive," he said. "This is a tough time, but I believe we can still safeguard our national interests."

Mahmud Hasan Khan Babu, the newly elected president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), welcomed the call. 

"If the tone of the conversation was positive, it could help boost trade with the US. This kind of engagement may help expand our exports to their market," he told The Business Standard.

He stressed the growing importance of a Free Trade Agreement (FTA) with the United States. "If concluded, an FTA would create strong export opportunities for Bangladesh. Positive top-level talks could help accelerate negotiations."

Experts on international relations noted the broader geopolitical context behind the call. The US has long encouraged Bangladesh to support its Indo-Pacific Strategy (IPS), join the Quadrilateral Security Dialogue (Quad), and participate in the Indo-Pacific Economic Framework (IPEF).

Tensions mounted earlier this month when Bangladesh's interim government participated in a trilateral meeting with China and Pakistan in Kunming, which was later described by the Foreign Ministry as an "informal" exchange. 

However, observers widely viewed the meeting as the emergence of a potential new strategic alliance, raising concern in Washington and New Delhi.

"These issues will not escape the notice of neighbouring India, the globally influential US, or other countries with interests in South Asia and the Bay of Bengal," said Major General (retd) ANM Muniruzzaman, president of the Bangladesh Institute of Peace and Security Studies (BIPSS).

For the US, which sees Bangladesh as an important development and security partner in the Indo-Pacific, the diplomatic signalling from Kunming could further complicate trade and strategic engagements.