Since Bangladesh gained independence, the United States has played an important role as an international partner in the country’s economic and social development. US cooperation in various sectors—including food assistance, agriculture, healthcare, education, disaster management, climate change, humanitarian assistance for Rohingya refugees, trade and foreign investment—has had a visible impact on Bangladesh’s development journey. According to Bangladesh’s Economic Relations Division, the United States has been one of the country’s major bilateral development partners since 1971.

From Post-Independence Reconstruction to Development Cooperation

Following independence, the United States began providing assistance for food supplies and rehabilitation in war-ravaged Bangladesh. Over time, this cooperation expanded beyond relief and rehabilitation to include long-term programmes aimed at increasing agricultural production, ensuring food security, improving healthcare and education, promoting economic development and strengthening infrastructure capacity.

A significant portion of US assistance has contributed to agriculture and food security. Various initiatives to strengthen small farmers’ capabilities, promote agricultural technology, increase food production and improve market systems have influenced Bangladesh’s rural economy.

Major Cooperation in Healthcare and Humanitarian Assistance

The United States has also been one of Bangladesh’s important development partners in the healthcare sector. During the COVID-19 pandemic, in particular, the US provided Bangladesh with substantial quantities of vaccines and emergency health assistance. According to the US Department of State, the United States provided Bangladesh with more than $121 million in life-saving, pandemic-related assistance from March 2020.

In addition, US support has continued for maternal and child health, the prevention of infectious diseases, public health and efforts to strengthen the country’s healthcare system.

Major US Role in the Rohingya Crisis

The presence of approximately one million Rohingya refugees in Bangladesh has placed considerable pressure on the country’s economy, environment and host communities. The United States has been one of the major international donors responding to the crisis.

According to information from the Office of Inspector General of the US Agency for International Development (USAID), US humanitarian assistance for the Rohingya crisis in Bangladesh and Myanmar reached approximately $1.9 billion between August 2017 and September 2022. A substantial portion of the assistance was used for food, healthcare, water, sanitation, shelter and other emergency humanitarian activities.

However, addressing the protracted Rohingya crisis requires more than humanitarian assistance. Ensuring sustainable livelihoods and long-term development for local communities has also become increasingly important.

Importance of the US Market to Bangladesh’s Economy

The United States is one of the major export markets for Bangladesh, particularly for ready-made garments and various other products. In 2025, the total trade in goods and services between the two countries reached approximately $13.7 billion. In the same year, the United States imported around $9.5 billion worth of goods from Bangladesh and exported approximately $2.4 billion worth of goods to the country.

As a result, the US market is particularly important for Bangladesh’s ready-made garment, agricultural, leather, footwear and other export-oriented industries.

2026 Trade Agreement Adds a New Dimension

An understanding reached between Bangladesh and the United States on a Reciprocal Trade Agreement in February 2026 marked an important new chapter in their economic relations.

According to a joint statement issued by the White House, the arrangement provides for reducing the initial reciprocal tariff on Bangladeshi goods to 19 percent. It also outlines a mechanism for granting zero reciprocal tariff treatment to a specified quantity of Bangladeshi textile and apparel products.

In return, Bangladesh has committed to expanding market access for various US industrial and agricultural products, reducing trade barriers, modernising customs and tariff administration, and implementing reforms in areas including labour rights.

US Influence on Investment in Bangladesh

US investment in Bangladesh also has a long history. American companies have invested in various sectors, including power, energy, banking and insurance, and infrastructure.

According to published information from the US Department of State, the stock of US investment in Bangladesh stood at approximately $4.015 billion in 2022, accounting for around 20 percent of the country’s total inward foreign investment.

The 2026 trade understanding also refers to the potential for financing investment in key sectors of Bangladesh through the US Export-Import Bank (EXIM Bank) and the US International Development Finance Corporation (DFC).

Prospects in Energy and Infrastructure

A reliable supply of electricity and energy is essential for Bangladesh’s rapid industrialisation. In this regard, US technology, investment and energy trade could become increasingly important in the future.

Under the 2026 trade understanding, Bangladesh indicated plans to purchase approximately $15 billion worth of energy products from the United States over the long term. Potential trade involving agricultural products worth around $3.5 billion was also mentioned.

New Investment in Aviation and Connectivity

US influence is also evident in efforts to modernise the fleet of Biman Bangladesh Airlines, the country’s national flag carrier. In September 2026, Biman Bangladesh Airlines decided to purchase 11 additional Boeing aircraft. This was expected to bring the airline’s total number of aircraft on order from Boeing to 25.

Modernising the fleet could enhance international connectivity, tourism, business and trade, as well as the airline’s capacity to serve expatriate passengers.

Impact on Labour Rights and Good Governance

The US role in Bangladesh’s development extends beyond economic cooperation. Washington also maintains positions on labour rights, good governance, the rule of law and democratic institutions.

Under the 2026 trade understanding, Bangladesh committed to taking various measures to protect internationally recognised labour rights, strengthen workers’ rights to organise and engage in collective bargaining, and prohibit imports of goods produced through forced labour.

These commitments could increase pressure on Bangladesh’s export-oriented industries to improve workers’ rights and workplace conditions.

Opportunities and Challenges for Bangladesh

Closer economic relations with the United States are creating significant opportunities for Bangladesh, while also presenting several challenges.

Key opportunities include:

• Potential growth in exports to the US market.
• New market-access benefits for the ready-made garment sector.
• US investment in energy and infrastructure.
• Increased investment in technology and industry.
• Cooperation in agriculture and food security.
• Improvements in labour standards and working conditions.
• Expansion of international connectivity and air transport.

On the other hand, tariffs, labour standards, environmental requirements, trade transparency and domestic policy reforms will remain important factors in determining Bangladesh’s access to the US market.

Overall Assessment

The United States has played a multifaceted role in Bangladesh’s development. What began with food and rehabilitation assistance after independence has evolved into a broader relationship encompassing trade, investment, energy, technology, healthcare, humanitarian assistance and strategic partnership.

The new trade understanding in 2026 has added another dimension to the economic relationship between the two countries. However, to maximise the benefits of this partnership, Bangladesh will need to focus on export diversification, labour rights, improving the investment climate, modernising customs administration, strengthening good governance and increasing productivity.

Experts believe that the United States can remain an important partner in Bangladesh’s development. However, the foundation of Bangladesh’s long-term development strategy must be its own productive capacity, skilled human resources, diversified exports and a broad range of international economic partnerships.