Dhaka: Bangladesh’s national carrier, Biman Bangladesh Airlines, has signed an agreement with United States aviation giant Boeing to purchase 14 aircraft for $3.7 billion, making it the largest commercial contract under the country’s new government. The decision effectively severed ties with European aircraft manufacturer Airbus, with which Bangladesh had been in prolonged negotiations, raising questions about Dhaka’s strategic direction. Biman Bangladesh Airlines’ largest-ever jet order has it all mapped out! 🗺️We’re delighted they’ve selected 14 787 #Dreamliner and 737 MAX airplanes to boost capacity and efficiency on flights to the Middle East, India and North America.Release: https://t.co/W2ksAJ4WW0 pic.twitter.com/2LDPKJioi4— Boeing Airplanes (@BoeingAirplanes) April 30, 2026Biman turned to Boeing after Bangladesh signed a controversial trade agreement with the US under the Mohammad Yunus-led interim government, necessitating the procurement of an American aircraft.The Agreement on Reciprocal Trade (ART) was signed in Washington DC on February 9, just three days before Bangladesh held national elections and a week before the newly elected government assumed office. Biman moved quickly thereafter, finalising the aircraft purchase within two and a half months of the new government taking power. Valued at approximately $3.7 billion at list prices, equivalent to more than Tk 45,000 crore at the current exchange rate, the deal is the largest commercial agreement is Biman’s history. It was signed hurriedly on April 29, even as political leaders and civil society groups were calling for a review the trade deal, arguing that it works against Bangladesh’s national interest and could severely limit the country’s sovereign decision-making in trade matters.Biman had previously signed a memorandum of understanding with Airbus in 2023 to acquire ten wide-body aircraft during the tenure of the former prime minister Sheikh Hasina. Under the new deal, the carrier will receive two 787-9 aircraft, eight 787-10s and four 737-8s, with deliveries scheduled between October 2031 and November 2035.Also read: Air India Crash Latest Blot in Boeing’s History, Whistleblowers Had Raised Concerns on DreamlinerThe loss-making carrier has entered into the largest financial commitment in its history at a time when the government is under considerable financial strain, amid a record revenue shortfall and rising import cost driven by a global oil shock. A senior Biman executive, speaking anonymously, told The Wire that the airline had been under pressure to sign the agreement by May 30. “If we did not sign within the time period, Biman would have had to pay additional costs, as Boeing offered a lower price during time frame,” they said. As per the ART, the agreement was to enter into force 60 days after both parties exchanged written notifications confirming completion of their respective legal procedures. However, Biman concluded the deal before the government had initiated its promised review of the trade agreement. Why the Bangladesh–US deal has triggered controversyThe US initially imposed a reciprocal tariff of 37% on Bangladesh on April 2, 2025. Following subsequent discussions, the tariff was reduced to 20%. Bangladesh then signed the ART, bringing the tariff down further to 19%, subject to implementation of the agreement’s various provisions.However, the conditions listed under the ART have raised serious concerns. Bangladesh is providing duty-free access for virtually all American goods, while the US is not offering similar preferential market access to Bangladeshi exports. Moreover, the tariff burden on Bangladesh will be higher than before as Most-Favoured-Nation (MFN) tariffs imposed by the World Trade Organisation (WTO) will continue to apply. The average import-weighted tariff on items entering the US, barring goods exempted from reciprocal tariffs, would now stand at about 34% (15% MFN + 19% RT). By contrast, import tariffs on US goods would fall from the current 6.2% to near zero.One of the key concerns is a clause barring Bangladesh from signing trade agreements with “non-market economies” such as China and Russia, and restricting certain procurements like nuclear reactors, with the threat that the US could raise the reciprocal tariffs on failure to comply. Bangladesh is also discouraged from buying subsidised China goods, even when such purchases would benefit the country economically. Additionally, the ART requires Bangladesh to facilitate the purchase of US products by Bangladeshi companies, committing the country to procuring $3.5 billion worth of American agricultural products and $15 billion worth of energy products over several years. These products are widely expected to come at higher prices than alternative sources, potentially requiring government subsidies. The agreement also stipulates that “Bangladesh shall endeavour to increase purchases of US military equipment and limit military equipment purchases from certain countries.”Complicating matters, the US Supreme Court on February 20 struck down large parts of the reciprocal tariff regime, ruling that the president had exceeded his authority in imposing sweeping tariffs. While not all measures were invalidated, the ruling significantly altered the context in which the deal had been negotiated. The Trump administration later imposed a 10% tariff under Section 122 of the Trade Act of 1974, later raising it to 15% across all countries. These measures are temporary and subject to congressional approval after 150 days.The deal has faced mounting criticism within Bangladesh. Independent member of parliament Rumeen Farhana urged the parliament to take up the agreement for discussion, claiming it contained provisions that were against Bangladesh’s interests and had been finalised before the elections, without democratic scrutiny. She added that the government retained the option to cancel the agreement within 60 days. Meanwhile, a writ petition has been filed with the High Court on May 4 challenging the legality of the Regional Trade Agreement (RTA), describing it as manifestly unreasonable and structurally imbalanced. Supreme Court lawyers Mohammad Maidul Islam Polok and Subir Nandi Das filed the petition accusing authorities of failing to protect the country’s economic sovereignty and public interest during the negotiation and signing of the agreement.Malaysian trade minister Johari Abdul Ghani stated last month that his country’s trade deal with the US was “null and void” in light of the US Supreme Court verdict. However, his ministry later retracted the statement claiming that Johari had “misspoken,” leading to widespread confusion about whether he had been misquoted or whether his statement reflected official policy. Malaysia signed its deal in October 2025, and its parliament has since urged the government to suspend all steps towards ratification. What experts sayMustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), noted that Bangladesh currently sources key commodities such as wheat, soybean, LPG and cotton from countries offering lower costs and shorter delivery times that the US. Importing from the US generally entails higher transport cost and longer lead times. Since the overwhelming share of such procurement is carried out by the private sector, the government may end up having to offer incentives and subsidies to make US commodities competitive in the Bangladeshi market. Rahman added that the risks would have been substantially reduced had the agreement included a provision requiring US exporters to match the minimum available market price. He also stated that the US can raise tariffs or reimpose duties on previously exempted Bangladeshi goods in case Bangladesh signs a trade deal with a non-market economy, enters digital economy deal with a country not endorsed by the US or fails to resolve US concerns on virtually any ART-related matter.Bangladesh’s nuclear power plant was built with Russian support and any future expansion involving Russian reactors would now fall under US scrutiny. Similarly, China is Bangladesh’s single most largest source of imports. Rahman questioned why Bangladesh should be constrained from importing competitively priced Chinese goods simply because China provides subsidies to its state-owned enterprises and producers, especially when those imports do not compete with Bangladesh’s industries.Rahman argued that the tariffs were a violation of WTO rules, which prohibit member countries from imposing country-specific tariffs and require that duties on the same item be uniform across all trading partners under the MFN principle. The Supreme Court verdict, he said, has opened a window for Bangladesh revisit its position. The original rationale behind the ART was to avert the threat of the 37% tariff. With the tariff now fixed at 10-15%, that justification is no longer valid.BNP defends trade deal amid criticismDespite nationwide criticism, ministers of the Bangladesh Nationalist Party (BNP) government have continued to defend the trade deal.Foreign minister Khalilur Rahman has on several occasions defended Bangladesh’s position in its reciprocal trade agreement with the US, urging critics to view the deal in a broader global context and compare it with similar agreements signed by other countries. He made these remarks after a meeting with Brendan Lynch, assistant US trade representative for South and Central Asia, who visited Dhaka recently.Khalilur, who served as the national security adviser and high representative for the Rohingya issue under the Muhammad Yunus-led interim government before being appointed Foreign Minister in early 2026, was a key figure in negotiating the deal. When concerns were raised by journalists over the timing of the agreement, signed shortly before the election, and over provisions restricting trade with non-market economies, Khalilur stated that the deal was not done “in the dark” and had been consulted with major political stakeholders, including BNP and Jamaat-e-Islami.Notably, while he was serving under the interim government, BNP itself had raised questions about his background and his residency status abroad. Prior to his appointment, he had held senior positions at the United Nations in Geneva and New York.Commerce minister Khandaker Abdul Muktadir has also weighed in on the matter, telling journalists after a separate meeting with Lynch that a state-level agreement is not like a personal contract that can be cancelled at will. “It is a reality, and we want to make the best use of it to expand the country’s trade and investment,” he said. Muktadir added that Bangladesh need not be worried about the agreement, as international trade deals are structured to benefit all signatories.