Indian Council of World Affairs

Abstract: As Bangladesh undergoes a political change, it is an opportune moment for the United States to work together with Bangladesh to address its concerns and transform the relationship for the future.

The student protests in Bangladesh against a quota system for government jobs turned into a popular call for the resignation of former Prime Minister Sheikh Hasina Wazed. Following the resignation, the international community called for a peaceful transition of power and for the protection of life and property of the people. The United States has been critical of former Prime Minister Hasina and her government for its human rights violations and crackdown on members of the opposition. The White House, “urge(d) the interim government formation to be democratic and inclusive.”[i] It also commended Bangladesh’s Army for the restraint it had shown and respected that it allowed the civilian participants to take over the interim government formation. The US Secretary of State, Antony Blinken, stated “…any decision that the interim government makes, needs to respect democratic principles, needs to uphold the rule of law, needs to reflect the will of the people.”[ii]

The U.S.-Bangladesh Relations 

The United States and Bangladesh have had diplomatic relations since 1972 and are important trading partners. The United States has provided development assistance to Bangladesh in areas, such as education, health and economic growth. The two nations also work together on security issues, such as terrorism and promotion of regional stability through joint military exercises and training for Bangladesh’s security forces. Bangladesh has gained strategic significance within the U.S. security strategy amidst the intensifying global competition especially in the Indo-Pacific. 

In recent years, relations between the United States and Bangladesh have witnessed some stress points, with the United States being critical of Bangladesh’s human rights record and eventually, the decline of democracy. In 2021, the United States imposed sanctions on some members of the Rapid Action Battalion, the anti-terrorism and crime branch of Bangladesh’s police force. Bangladesh was not invited to the Summit of the Democracy hosted (virtually) by the United States in 2021. Dhaka was not part of the subsequent Summit of the Democracy 2023, co-hosted by United States and 2024, hosted by the Republic of Korea. In 2022, the U.S. Ambassador to Bangladesh, Peter D Haas, also expressed his concerns regarding the conduct of free and fair elections, and in 2023, the U.S. cautioned that the decline in democracy would affect relations in the future. The sanctions and the continued criticisms from America were surprising for many in Bangladesh’s government, given that the two nations have shared cordial relations. As the political reality of Bangladesh changes, the United States has extended its support to the interim government and has expressed a desire for an elected government to take office soon. 

Despite the differences, economic ties between the two remain robust and growing. The United States is the largest export market for Bangladesh especially textiles and apparel, however, there has been a steady decline as relations have come under stress. The United States is one of the top sources of foreign direct investments in Bangladesh. It received USD 3.44 billion in foreign direct investment in FY 2021-2022 from the United States[iii], primarily in the energy and power sectors. As Bangladesh undergoes change, the United States would need to work with the new government in Dhaka to discuss future economic opportunities especially as Dhaka looks for partners to build climate resilient infrastructure for its economic growth. The U.S. has also made valuable contributions through scholarship and fellowship programmes in the education sector, which remains important to Dhaka. The United States remains critical for Bangladesh towards its aspirations to be a prominent South Asian economy. It is also in U.S. interests to support this aspiration as part of its larger desire for peace and stability in the Indo-Pacific. 

Extremist violence also presents a common concern for the two nations. The United States Department of State has worked closely with Bangladesh’s government on international narcotics control and law enforcement, human rights and worker’s rights, supporting Myanmar Rohingya refugees, non-proliferation and anti-terrorism and increasing controls over the financing of terrorist groups. As an important littoral State in the Indian Ocean, it is a key partner in the fight against climate change, and the two have partnered in the Global Climate Change Initiative and the Global Health Initiatives and worked together on the Feed the Future to address food security and increase crop yields. For the United States, Dhaka is also a partner that helps address the humanitarian crisis in Myanmar. The South Asian nation has also provided sanctuary to a large number of Rohingya refugees and continues to need assistance from the United States in this direction. Through their annual US-Bangladesh Partnership Dialogue between the foreign secretaries of the two nations, they have shared views on bilateral, regional and global issues. [iv] The dialogue has also ensured that the two nations find greater areas of cooperation in economic and development issues and strengthen security collaborations. 

Defence is an important component of the relations and through the annual U.S. Bangladesh Security Dialogue, at the working level, they have been able to pursue their shared vision for a stable region. As part of its Indo-Pacific Strategy, the United States aims to deepen cooperation in maritime security, economic and health issues while trying to counter, limit and mitigate Chinese and Russian geopolitical, commercial and technological transfers to its partners and allies. In an effort to secure its position, the United States is pursuing two defence agreements with Bangladesh — the Acquisition and Cross-Servicing Agreement (ACSA)[v] and the General Security of Military Information Agreement (GSOMIA). The ACSA is a mutual logistics support agreement under which the U.S. forces will get access to logistic support and supplies and services, such as food, fuel, ammunition, and equipment. The GSOMIA agreement facilitates the sharing of military intelligence and information. 

Bangladesh has embraced the concept of the Indo-Pacific, and in its own Indo-Pacific Outlook, it outlined that it “… envisions a free, open, peaceful, secure and inclusive Indo-Pacific for the shared prosperity of all.”[vi] The United States has found convergences between the two and has welcomed the Outlook, understanding the need for Bangladesh to be part of the larger collaborations in this region. Its strategic location, serving as a gateway to both South and Southeast Asia and to the Bay of Bengal, friendly ties with countries of the region, the United States and its allies and partners, and many European countries make Bangladesh an ideal partner. Strengthened engagements with the Indo-Pacific nations would be beneficial for Bangladesh’s economy as the nation aspires to leave behind its “Least Developed Nation” status and emerge as an upper middle-income country in the near future. Apart from economic ties, the United States remains an important security partner for Bangladesh. Security ties gained prominence after the Holey Artisan Cafe attacks (2016)[vii]. The two nations increased their counterterrorism cooperation, which also included working together to enhance civil and military competency to detect and respond to illegal passages, human and arms trafficking, illegal, unreported and unregulated (IUU) fishing, counter-narcotics operations and build robust intelligence networks. Beyond the bilateral, Bangladesh is also working with the United States within the regional and global frameworks, which includes increased maritime security cooperation in the Bay of Bengal, protection of maritime sea routes and also conflict resolution. 

Conclusion 

The United States and Bangladesh have a history of cordial relations, with Washington emerging as an important partner to help Dhaka achieve its development goals, including in areas such as education, health, disaster preparedness, food security and poverty reduction. In recent years the United States has raised its concerns with respect to the state of democracy and human rights in Bangladesh but despite the differences the two nations have continued to hold talks and dialogues to develop cooperative relationship. 

As Bangladesh lays emphasis on its economic development, jobs for its growing population and address challenges related to climate change and natural disasters and invest in its security apparatus, the United States would like to be its natural partner. Both nations have convergences on numerous issues such as their shared vision for a free and open Indo-Pacific, the fight against terrorism and robust sustainable economic development. As Bangladesh and the United States elect new governments in the future, it is an opportune moment to engage with each other in a renewed setting.

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*Dr. Stuti Banerjee is a Senior Research Fellow with the Indian Council of World Affairs, New Delhi. Disclaimer: The views expressed are personal.

Endnotes

[i] The White House, “Press Briefing by Press Secretary Karine Jean-Pierre,” https://www.whitehouse.gov/briefing-room/press-briefings/2024/08/06/press-briefing-by-press-secretary-karine-jean-pierre-65/, Accessed on September 04, 2024.

[ii] Office of the Spokesperson, U.S. Department of State, “Secretary Antony J. Blinken, Secretary of Defense Lloyd J. Austin III, Australian Deputy Prime Minister and Minister for Defense Richard Marles, and Australian Foreign Minister Penny Wong at a Joint Press Availability,” https://www.state.gov/secretary-antony-j-blinken-secretary-of-defense-lloyd-j-austin-iii-australian-deputy-prime-minister-and-minister-for-defense-richard-marles-and-australian-foreign-minister-penny-wong-at-a-joint-p/, Accessed on September 04, 2024.

[iii] U.S. Department of State, “2023 Investment Climate Statements: Bangladesh,” https://www.state.gov/reports/2023-investment-climate-statements/bangladesh/, Accessed on 09 September 2024.

[iv] The U.S. Embassy Dhaka, “U.S.-Bangladesh Relations,” https://bd.usembassy.gov/u-s-bangladesh-relations/#:~:text=Our%20annual%20U.S.%2DBangladesh%20Partnership,ongoing%20and%20future%20cooperative%20activities, Accessed on September 04, 2024.

[v]

[vi] Ministry of Foreign Affairs, Dhaka, “Indo-Pacific Outlook of Bangladesh,” https://mofa.gov.bd/site/press_release/d8d7189a-7695-4ff5-9e2b-903fe0070ec9, Accessed on September 04, 2024.

[vii] Armed gunmen attacked the Holey Artisan Café and held the diners hostage for close to 12 hours. The attack led to the deaths of 24 people, which included 20 hostages (mostly foreign nationals), two café staff and two police officers. The five attackers also died.