Bangladesh has cleared a deal to import 220,000 metric tons of U.S. wheat in an effort to ease trade friction and offset high import duties imposed by the Trump administration, a Dhaka official said Wednesday.
A food ministry official stated that Bangladesh approved the wheat purchase at $302.75 per ton through a government-to-government agreement, with the shipment to be supplied by a Singapore-based trading firm.
In July, Bangladesh entered into a five-year pact to source 700,000 tons of U.S. wheat annually under a cooperation agreement.
Bangladesh mainly sources affordable wheat from the Black Sea region, complemented by limited imports of higher-quality grain from the U.S. and Canada for mixing purposes.
Before the Trump administration cut USAID this spring, Bangladesh was supplied with donated U.S. wheat and other grains.
Trump threatened 35 percent tariffs from August 1 unless Bangladesh acts to cut its $6 billion trade gap with the U.S.
This huge margin will only borderly reduce the trade deficit, but Brian Liedl of the U.S. Wheat Associates said the deal has prompted the group to pursue other markets looking to avoid costly tariffs.
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Liedl said the trade group seeks to broker similar agreements with Asian and sub-Saharan African nations that previously depended on donated U.S. wheat and food assistance.
