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working conditions with the Bangladeshi government.

Bangladesh does not yet ban the import of goods produced with forced or compulsory labour, allowing such products to enter and compete in the local market.

CORRUPTION AND BUSINESS CHALLENGES

The USTR said corruption is a long-standing and widespread problem in Bangladesh, and anti-corruption laws are poorly enforced. Although laws exist against facilitation payments and gifts, bribery and extortion remain common in business dealings.

US companies have complained about long delays in obtaining licenses and bid approvals, as some government officials demand bribes. While the previous interim government prioritised fighting corruption, the Anti-Corruption Commission (ACC), the main watchdog, has not always been able to operate independently.

Updates to the Public Service Act in 2025 removed barriers, allowing the ACC to investigate and prosecute government officials. The ACC has increasingly pursued cases against officials, mostly lower-level and some higher-level, but a large backlog of cases remains.

Under the recently signed US-sponsored Agreement on Reciprocal Trade (ART), Bangladesh has agreed to strengthen, implement, and enforce anti-corruption laws.

The country will also establish penalties for entities involved in corrupt practices and maintain standards of conduct for public officials to ensure proper performance and avoid conflicts of interest.

REGULATORY AND PROCUREMENT CONCERNS

US stakeholders have raised concerns about Bangladesh’s sanitary and phytosanitary regulations, which include many testing and certification requirements that do not appear to be science- or risk-based.

For example, animal feed must come with radioactivity test reports and certificates confirming it is free from chloramphenicol, nitrofurans, “harmful antibiotics,” and melamine. Bangladesh also tests all shipments of animal feed ingredients for porcine and bovine residues during customs clearance.

The USTR report also criticised Bangladesh’s public procurement system.

INTELLECTUAL PROPERTY CHALLENGES

Bangladesh continues to lack adequate protection and enforcement of intellectual property (IP) rights. The government devotes limited resources to IP enforcement, and counterfeit and pirated goods are widely available.

Several stakeholders have reported increases in potential IP violations across industries, including consumer goods, apparel, pharmaceuticals, and software. They also noted a growing trend of Bangladesh serving as a source country for counterfeits distributed globally.

The lack of investigative resources and expertise among the police, along with their reluctance to conduct independent investigations, makes it difficult for IP rights holders to enforce their rights. Concerns also exist over whether courts can fairly adjudicate IP cases.

While Bangladesh has made some legislative reforms in recent years to improve IP protection, the effectiveness of these changes remains uncertain because implementing rules have not yet been finalised.