Government Plans Purchase of 14 Boeing Aircraft as US Tariff Cut for Bangladesh Likely

The government is preparing to sign a major aircraft procurement agreement with US-based manufacturer Boeing to purchase 14 aircraft for the national flag carrier, Biman Bangladesh Airlines, at an estimated cost of Tk 30,000 crore to Tk 35,000 crore. The move is part of a broader strategy to narrow the trade gap with the United States and secure reduced tariffs on Bangladeshi exports.

Commerce and Civil Aviation Adviser Sk Bashir Uddin disclosed the development at a press briefing on Sunday, stating that a comprehensive techno-financial evaluation had been conducted based on proposals from both Airbus and Boeing. Following negotiations led by Adviser Wahiduddin Mahmud, the government has moved forward with Boeing, although final discussions on pricing are still ongoing.

According to the adviser, the payment for the aircraft will be spread over a long-term period, potentially extending up to 20 years. On average, annual payments are expected to range between Tk 1,500 crore and Tk 2,000 crore, easing immediate fiscal pressure on the government.
 

Sources familiar with the deal said Biman plans to acquire eight Boeing 787-10 Dreamliners, two 787-9 models, and four Boeing 737 MAX 8 aircraft. The expansion aims to modernise the airline’s fleet and strengthen its long-haul and regional operations.

Alongside the aircraft deal, Bangladesh is set to sign a trade agreement with the United States that could lead to a reduction in reciprocal tariffs on Bangladeshi products. A senior commerce ministry official indicated that the tariff rate may be lowered from the current 20 percent to 18 percent following the agreement.
 

The signing ceremony is scheduled for Monday and will be held in a hybrid format. Adviser Bashir Uddin and Commerce Secretary Mahbubur Rahman are expected to attend virtually, while a delegation of senior Bangladeshi officials is present in Washington to participate in person with US counterparts.

As part of the negotiations, Bangladesh has pledged to increase imports of American goods to help reduce the bilateral trade imbalance. In return, the United States has agreed not to impose tariffs on garments produced using American raw materials such as cotton, according to Commerce Secretary Rahman.

Bashir Uddin expressed cautious optimism about the outcome, noting that earlier negotiations had already brought down a proposed 37 percent tariff to 20 percent. He said the government’s long-term goal remains to secure zero tariffs on Bangladesh’s main export product, ready-made garments.
 

He added that achieving lower tariffs could significantly boost Bangladesh’s current export volume, estimated at around Tk 1 lakh crore, and unlock new growth potential in the US market.