Since the general election in Bangladesh on January 7, there has been a noticeable shift in the United States’ stance. Throughout the election process, the Biden administration consistently underscored the significance of an open and fair election involving all major parties. However, the situation has since changed.
In the six months leading up to the election, there were no diplomatic visits between Dhaka and Washington. It was understood that there would be a pause in such visits during the election period.
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After the election, US President Joe Biden penned a letter to Awami League President Sheikh Hasina, hinting at a promising ‘new chapter’ in the bilateral relations between the two countries. Alongside President Biden, several other high-ranking officials also stressed the importance of strengthening ties between the two nations. Despite having grievances about the election, why is the US still emphasizing building relations?
Chronicle of Bangladesh-US Relations
During the 1971 Liberation War of Bangladesh, the United States showed a preference for Pakistan. However, within four months of its independence, the United States recognized Bangladesh on April 4, 1972, and progressively fostered strong relations in various sectors, ranging from trade to security.
For the past half-century, both countries have maintained amicable relations, enhancing cooperation in fields such as development, climate change, counter-terrorism, democracy, and human rights.
Over the past ten years, collaboration in trade, investment, and security, especially in counter-terrorism, has been reinforced. This partnership expanded even more after 2016. Bangladeshi products have a substantial market in the United States. The trade balance between the two nations is in favor of Bangladesh, with the United States being the largest single market for garments manufactured in Bangladesh. By 2019, bilateral trade had reached USD 9 billion, with US exports to Bangladesh amounting to USD 2.3 billion, a 12 percent increase from 2018. In the meantime, Bangladesh exported goods worth USD 6.7 billion to the United States, a 9.5% increase from 2018.
The US has made a significant contribution to the vaccine. Bangladesh is the third-largest recipient of US aid in South Asia. The US commended Bangladesh for offering refuge to Rohingya refugees, noting that it had not only fulfilled its obligation but also continued to provide support and cooperation. In the context of such a relationship, the US has imposed sanctions multiple times. According to the US State Department (2023), ‘Bangladesh is a crucial regional partner on economic, climate, humanitarian, and security priorities’.
Against this backdrop, this article focuses on why Bangladesh is important to the United States.
Significance of Bangladesh’s Geo-strategic Position
Bangladesh’s geo-strategic placement renders it a crucial nation for the United States, particularly in light of the escalating geopolitical competition and the geopolitical shift from the Middle East to the Asia-Pacific region, specifically South Asia. Amidst competing geopolitical connectivity initiatives, Bangladesh has emerged as a significant player.
To comprehend the escalating geo-strategic significance to the United States, it is essential to examine several pivotal policy documents.
The 2012 Fact Sheet of US Relations with Bangladesh, prepared for the US Department of State, reflected Bangladesh’s geo-strategic importance. It was also asserted that Bangladesh is a principal strategic ally of the US in South Asia (USDS, 2012).
Dan Mozena, the former American Ambassador to Bangladesh (2013), noted that Bangladesh is a nation that holds considerable importance to America and the global community. Furthermore, in a letter to Congress members in May 2013, Dan Mozena cautioned, “Maintaining good relations with Bangladesh is crucial to regional security and the strategic interests of the United States.”
The Congressional Research Service report of 2010 titled – ‘Bangladesh: Political and Strategic Developments and US Interests,’ also reflected the geo-strategic importance of Bangladesh. It contended that Bangladesh is a country of strategic significance not just to the South Asian sub-region but to the broader geopolitical dynamics of Asia.
Bangladesh has played and is likely to continue playing, a role in the shifting regional power balance between India and China. The policy document also underscored Bangladesh’s geo-strategic location and its importance: Bangladesh, located at the northern tip of the Bay of Bengal, could potentially become a state of growing interest in the evolving strategic dynamics between India and China.
This significance could be amplified by the development of Bangladesh’s energy reserves and regional energy and trade routes to China and India. Therefore, Bangladesh holds an interest in the United States due to its role in the broader geopolitical dynamics of South Asia.
Economic Considerations
From the viewpoint of the United States, economic considerations emerge as the single most influential factor in its relationship with Bangladesh. This is evident from a list of foreign policy objectives published by the State Department in 1976.
Interestingly, on that list, four out of five foreign policy objectives of the United States concerning Bangladesh were directly or indirectly tied to the US’s economic interests. Even though these were the US foreign policy objectives of 1976, they remain relevant to date, as confirmed by the Congressional Report of 2010. The report highlighted those American interests in Bangladesh encompass promoting development, trade, energy, supporting democracy, countering militant Islamists, and collaborating in peace operations.
President Obama also underscored the economic significance of Bangladesh’s market for the prosperity of the American people. US firms acknowledge the country’s potential and are keen to engage in business activities. In fact, it can be argued that trade and investment constitute two primary economic interests of the US in Bangladesh.
Security Concerns
Fostering a cordial relationship with Bangladesh also aligns with the security interests of the United States. The policy document titled ‘Bangladesh: Political and Strategic Developments and US Interests’ highlighted that both Bangladesh and the United States share a mutual interest in combating extremism and its ideology.
As per the US Department of State, Bangladesh’s endeavors in development, countering violent extremism, contributing to international peacekeeping, and enhancing regional connectivity are crucial for regional and global stability.
Furthermore, the United States’ ‘Country Reports on Terrorism 2011’ and ‘Country Reports on Terrorism 2012’ acknowledged Bangladesh’s cooperation with the United States in the fight against transnational terrorist groups.
Enduring Relationships
While Bangladesh’s primary concerns revolve around sanctions and investments, the US is focused on ensuring its regional security. Amidst the ongoing power rivalry, the US is compelled to secure its position in the Indo-Pacific region. To achieve this, the US intends to enter into two defense agreements with Bangladesh: GSOMIA and ACSA. Through these agreements, the US aims to fortify military relations by augmenting intelligence exchange and providing logistical and technological support.
Bangladesh should continue to implement its policies and uphold its gentle demands to deepen its understanding of America and establish itself as a reliable ally of the US. The US is the largest export market for Bangladesh’s ready-made garments, absorbing 83 percent of total exports. The US also stands as the leading source of Foreign Direct Investment (FDI) for Bangladesh, with total investments amounting to $3.5 billion as of 2019. Bangladesh should strive to maintain robust ties with the US for two primary reasons: 1) investment opportunities and 2) the Rohingya Crisis.
Both nations have demonstrated signs of progress over time, with Bangladesh setting up human rights cells and disseminating human rights reports. Concurrently, the US has reiterated its commitment to collaborate with Bangladesh.
In conclusion, Bangladesh endorses the US’ Indo-Pacific strategy of freedom and openness. It relies on the US for its development. Bangladesh harbors ambitions of becoming an economic wonder in South Asia. Consequently, it is dependent on the US and the European Union to sustain its current pace of rapid economic growth. Bangladesh poses no threat to the US; instead, it could emerge as one of the US’s trusted allies in the region.
