Bangladesh Holds Elections Amid US Trade Deal and Garment Crisis

Bangladesh is holding national elections on February 12, 2026, as the country attempts to stabilize its economy and political landscape. The garment industry, which constitutes 80% of national exports, has experienced six months of decline following the 2024 removal of Sheikh Hasina and subsequent domestic labor unrest.

To address the crisis, Donald Trump and the Bangladeshi interim government reached a trade agreement on February 10, 2026. The deal reduces tariffs to 19% and introduces a zero-tariff quota for textile and apparel exports, contingent upon Bangladesh purchasing U.S.-made textile inputs such as cotton.

Political parties are leveraging the election to propose long-term economic shifts. The Bangladesh Nationalist Party and Jamaat-e-Islami have both pledged to diversify the economy by expanding into pharmaceuticals, leather, jute, and agro-processing to reduce the nation's vulnerability to fluctuations in a single industry.