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The report also said Bangladesh had not notified the WTO of its customs valuation laws.

INVESTMENT BARRIERS PERSIST

The report said that Bangladesh allows 100 percent foreign ownership in most sectors. However, equity caps remain in place for petroleum, gas, and telecommunications.

Moreover, investors in 22 sectors must obtain no-objection certificates from the relevant ministries.

While profit repatriation is legally permitted, American investors frequently report lengthy delays and opaque procedures -- in some cases, taking over a year, according to the report.

The USTR noted that the interim government had agreed to formal repayment arrangements with US firms and pledged improvements to repatriation processes.

GOVT PROCUREMENT LACKS TRANSPARENCY

On public procurement, the report criticised widespread corruption and a lack of transparency, despite Bangladesh’s support for international competitive bidding.

“Bangladesh has launched a national electronic government procurement portal, but US stakeholders have raised concerns about the use of outdated technical specifications, the structuring of specifications to favour preferred bidders, and a lack of overall transparency in public tenders.”

The report said several American companies alleged that foreign competitors have used local partners to influence the procurement process, blocking otherwise competitive US bids.

The report also cited claims of bid rigging, bribery, anticompetitive practices and chronic delays, putting US firms seeking government contracts at a disadvantage.

CORRUPTION ‘PERVASIVE AND LONG-STANDING’

Bribery and corruption remain systemic problems, the USTR said, adding that anti-corruption laws are poorly enforced.

While Bangladeshi legislation criminalises extortion, bribery (both active and passive), and abuse of public resources, these practices remain widespread in commercial dealings.

“There have also been efforts to water down anti-corruption safeguards of government procurement rules,” the report said. US companies continue to report lengthy delays in securing licences and contract approvals, often linked to demands for bribes.

INTELLECTUAL PROPERTY PROTECTION LACKING

On intellectual property (IP) rights, the USTR said enforcement remains weak due to limited government capacity.

US stakeholders reported rising violations across sectors including consumer goods, apparel, pharmaceuticals and software.

The report also flagged Bangladesh’s growing role as a source country for counterfeit goods entering global markets. Weak investigations and doubts over judicial impartiality further impede enforcement efforts.

Though recent legislative reforms have been introduced, the absence of implementing rules casts doubt on their effectiveness.

DIGITAL TRADE RESTRICTED BY REGULATIONS

The report expressed concerns over Bangladesh’s digital and data governance framework. The ICT Act of 2006, amended in 2013, allows government access to computer systems and communication networks.

Regulations issued in 2021 on digital, social media, and over-the-top (OTT) platforms were criticised for enabling government control over online content and exposing users to criminal liability.

The draft Personal Data Protection Act includes data localisation requirements and law enforcement access clauses, with minimal stakeholder input.