Bangladesh Eases Trade Tensions with Massive Wheat Purchase

The Bangladeshi government has approved the purchase of 220,000 metric tons of wheat from the U.S. to reduce trade tensions and combat high import tariffs. The deal follows a memorandum to import 700,000 tons annually over five years, alongside other significant trade agreements with American companies.

In an effort to mitigate escalating trade tensions and alleviate high import tariffs, Bangladesh has sanctioned the acquisition of 220,000 metric tons of wheat from the United States. The announcement was made by a Dhaka official on Wednesday, marking a significant step in the ongoing trade negotiations.

The wheat will be sourced under a government-to-government agreement at a rate of $302.75 per ton and is to be supplied by a trading house based in Singapore. This follows a memorandum signed in July, which promises the import of 700,000 tons of wheat annually from the U.S. over the next five years, reflecting Bangladesh's strategy towards a stable supply chain.

Furthermore, on July 27, Bangladesh expanded its economic engagement by ordering 25 aircraft from Boeing and increasing imports of major American products. Concurrently, a Bangladeshi government delegation is participating in trade discussions in the U.S. to solidify these economic ties.

(With inputs from agencies.)