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The report said several US companies have claimed that their foreign competitors often use their local partners to influence the procurement process and block awards to otherwise competitive US company bids.

“US companies have reported instances of alleged bid rigging in government tenders in Bangladesh,” said the report, adding that the US companies have also alleged the use of bribery, anticompetitive practices, and a lack of transparency in the bidding process.

All these disadvantages US companies bidding on government tenders.

Corruption

The report said bribery and corruption are pervasive and long-standing problems in Bangladesh, and anti-corruption law is inadequately enforced.

The USTR report cited various laws and added that they criminalise attempted corruption, extortion, active and passive bribery, bribery of foreign public officials, money laundering, and use of public resources or non-public state information for private gain.

“However, bribery and extortion in commercial dealings have been common features of business, despite the illegality of facilitation payments and gifts.”

“There have also been efforts to water down anti-corruption safeguards of government procurement rules. US companies have complained about long delays in obtaining approval of licences and bids, as Bangladeshi government officials seek bribes.”

Intellectual Property (IP) Protection

On Intellectual Property (IP) protection and enforcement, the USTR report said Bangladesh lacks adequacy due to limited government resources.

“A number of US stakeholders have reported increases in potential IP violations across industries, including consumer goods, apparel, pharmaceutical, and software industries.”

“Stakeholders also report a growing trend of Bangladesh serving as a source country for counterfeits distributed globally,” it said.

Weak police investigations and concerns over court impartiality have impeded enforcement.

Though legislative reforms have been introduced, their effectiveness is unclear as implementing rules are pending.

Digital Trade Barriers

The report said the ICT Act of 2006 (amended in 2013) permits government access to computer systems and interception of communications.

Regulations for digital, social, and OTT platforms issued in 2021 have raised concerns over government authority to control online content and impose criminal liability.

The draft Personal Data Protection Act includes data localisation and law enforcement access provisions, with limited stakeholder consultation. The Cyber Security Act of 2023, replacing the Digital Security Act, continues to allow prosecution over online posts.

The USTR noted repeated internet shutdowns since 2015 have disrupted access to services and impacted digital trade. A recent shutdown occurred without judicial or administrative approval, it added.

Labour Issues

On labour issues, it said in 2013, the US suspended Bangladesh’s GSP benefits due to failure to meet labour standards. As of December 2024, the suspension remains. In 2024, the US proposed an 11-point Labour Action Plan focusing on union rights, accountability for violence, and labour inspections.

The report said the interim government identified labour as a key priority, and the US plans continued engagement.