Bangladesh’s Nobel Laureate and senior trade advocate Muhammad Yunus has publicly congratulated his country’s trade negotiators for securing what he called a “landmark” trade agreement with the United States, praising their work in ensuring favourable market access and tariff concessions for Bangladeshi exports.

The agreement, signed earlier this week in Washington, offers duty-free or low-tariff access to a wide range of Bangladeshi goods, particularly textiles, pharmaceuticals, and agri-products. The move is expected to boost Bangladesh’s exports significantly, at a time when global competition in manufacturing is intensifying.

In a televised statement, Mr. Yunus said:

“This is a defining moment for our economic diplomacy. I want to congratulate our trade representatives for negotiating such a mutually beneficial agreement. It secures our national interest and supports our workers and industries.”

However, Yunus did not stop at celebrating Bangladesh’s success. He took the opportunity to draw a direct contrast with India, South Asia’s largest economy, which he claimed had failed to secure a comprehensive trade deal with the United States, leading to punitive tariffs on several Indian exports.

“While we were signing a duty-free deal, our neighbour India was slapped with a 25% tariff on key exports due to their inability to agree on terms. It’s a reminder that determined, consistent diplomacy pays,” Yunus added.

Bangladesh wins trade momentum

The new pact is the first of its kind for Bangladesh, and comes after three years of intense negotiations. It covers preferential access for ready-made garments (RMG), a mainstay of Bangladesh’s economy, as well as special treatment for eco-friendly goods and climate-aligned industries.

Under the agreement:

• Over 400 product categories will see tariff cuts or removals

• Rules of origin requirements have been eased for Bangladeshi firms

• Labour and environmental standards will be monitored jointly under a new U.S.-Bangladesh Trade Council

Experts say this deal will reduce reliance on EU markets, where preferential treatment under GSP+ may phase out due to Bangladesh’s graduation from Least Developed Country (LDC) status.

Yunus highlights India’s strategic misstep

Yunus's remarks about India have caused a stir, particularly as they come at a sensitive time in Indo-U.S. trade relations. India, which has been in stalemated negotiations with Washington over digital trade, data localisation, farm subsidies, and e-commerce, has not been able to finalise a free trade agreement despite high-level talks.

As a result, the U.S. recently announced a 25% tariff on Indian auto parts, processed food, and textiles, citing the lack of reciprocity and unresolved policy barriers.

This stands in contrast to Bangladesh’s successful diplomacy, which Yunus presented as a model for smaller economies:

“We didn’t demand everything. We listened, adapted, and aligned our proposals with American strategic interests—something larger economies often refuse to do.”

Indian government yet to respond

As of Saturday afternoon, India’s Ministry of Commerce had not issued a formal response to Yunus’s comments. However, trade officials privately indicated that talks with the U.S. are still ongoing, and that the tariff move was “not final” but part of a negotiation strategy.

Some Indian analysts have criticised the comparison, saying Bangladesh’s smaller economic footprint makes bilateral compromises easier, while India must protect wider domestic sectors and sensitive policy areas.

Others, however, agreed with Yunus’s broader point that India’s rigid trade posture may be costing it strategic leverage, especially in an era of shifting global alliances.

Political undertones and regional diplomacy

Observers note that Yunus’s comments may carry a political undertone as well, coming at a time when India’s regional leadership role is being challenged by a more agile and trade-savvy Bangladesh.

Bangladesh’s growing reputation as a “South Asian tiger”, backed by strong export growth and a stable macroeconomic framework, has allowed it to punch above its weight on the global stage.

Yunus, a key figure in Bangladesh’s soft power image, is often viewed as the unofficial economic statesman for Dhaka, despite not holding public office.

U.S. perspective: Strategic outreach

The U.S., under its current administration, is looking to strengthen economic ties in the Indo-Pacific to counterbalance China’s influence. While India remains a strategic partner, Washington has recently diversified its regional engagement, including deeper economic links with Bangladesh, Vietnam, Indonesia, and the Philippines.

A senior U.S. trade official, speaking on background, said:

“Bangladesh was proactive, clear, and aligned on our joint priorities. That allowed us to move forward quickly.”

He added that similar deals with other South Asian nations are under discussion but depend heavily on regulatory flexibility and market openness.

What this means going forward

Yunus’s remarks have brought new attention to South Asia’s diverging trade trajectories. With the U.S. seeking closer partnerships in the Indo-Pacific, countries like Bangladesh that align with global trade norms and show flexibility are expected to benefit more quickly.

India, meanwhile, faces a critical choice: whether to accelerate its FTA commitments and reduce protectionist stances, or continue defending domestic sectors at the cost of global competitiveness.

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