The World This Week | US revises interim trade deal fact sheet, BNP wins Bangladesh elections, and Apple Daily founder sentenced to 20 years

To the Far East, pro-democracy media tycoon Jimmy Lai, who played a pivotal role in the 2019 Hong Kong protests, has been handed a 20-year prison sentence, signalling the tightening political climate at the enclave under the Communist Party of China’s influence. The Apple Daily founder’s case can be viewed as another chapter in the chronicle of Hong Kong’s eroding autonomy since 1997. Lai also adds to a list of names targeted in President Xi Jinping’s broader campaign of purging influential figures who dare challenge his authority. 

Fact sheet fiasco over US-India interim trade deal

Following months of deadlock, Prime Minister Narendra Modi and US President Donald Trump announced the framework for an interim trade agreement last week and the US’s decision to slash tariffs on Indian goods to 18 per cent from 50 per cent.

Both sides issued a joint statement on the framework on February 6, following which the White House released a fact sheet on the position held by both sides on the deal and broader trade-related matters. It noted that the two leaders reaffirmed their commitment to broader US-India Bilateral Trade Agreement (BTA) negotiations.

The original fact sheet released early Tuesday, titled ‘The United States and India Announce Historic Trade Deal (Interim Agreement)’, listed a set of US commodities which would see tariff cuts and greater access, raising eyebrows in India.

The text included references to certain sensitive and labour-intensive sectors, like agriculture, and issues like data sovereignty, which had farmers, manufacturers and politicians on edge.

The White House on Wednesday revised the sheet, and the Ministry of External Affairs (MEA) said that the amendments reflect shared understanding.

What were the changes?

Agriculture and “certain pulses”: The original factsheet said that India “will eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products, including dried distillers’ grains (DDGs), red sorghum, tree nuts, fresh and processed fruit, certain pulses, soybean oil, wine and spirits, and additional products.”

The new fact sheet dropped “certain pulses” from the text.

India accounts for more than a quarter of global demand for pulses, according to the United Nations. New Delhi imports about a fifth of its yearly consumption of pulses to meet domestic demand.

India’s pulses imports in the first nine months of 2025-26 stood at $2.53 billion, The Indian Express reported. The US, however, was a minor source of pulse imports.

“Commits” to “intends”: The White House made another key change in the wording with regard to India buying $500 billion worth of US products over the next five years, or $100 billion annually.

It tweaked “India commits” in its earlier fact sheet to “India intends” in its revised statement, which currently reads: “India intends to buy more American products and purchase over $500 billion of U.S. energy, information and communication technology, coal, and other products.”

In FY 2024-25, India imported $45.62 billion of US goods and exported $86.51 billion of shipments to the world’s largest economy.

Equalisation levy and digital sovereignty: The original sheet said that New Delhi has agreed to remove its digital services taxes and committed to negotiating bilateral digital trade rules that ‘address barriers’ to digital trade.

“India will remove its digital services taxes and committed to negotiate a robust set of bilateral digital trade rules that address discriminatory or burdensome practices and other barriers to digital trade, including rules that prohibit the imposition of customs duties on electronic transmissions,” it read.

The revised version dropped this entirely and now says India is “committed to negotiate a robust set of bilateral digital trade rules.”

Much like with its European counterparts, Washington has been pressuring New Delhi to make commitments pertaining to its digital services taxes. The Trump administration sought a unilateral commitment from India not to reintroduce the equalisation levy in the future under the trade deal, as reported earlier by this newspaper.

Legal advisers had told the Ministry of Commerce and Industry that the provisions proposed by the US were “unilaterally framed” as it did not state that both parties should refrain from applying digital taxes on each other; instead, they sought a legal commitment only from the Indian side.

Russian Oil import: Until the announcement, India was among the highest tariffed countries in the world, facing a steep 50 per cent rate. The Trump administration had slapped 25 per cent duty as part of its Liberation Day tariffs, and another 25 per cent was imposed later for New Delhi’s import of Russian oil.

Trump signed an executive order to scrap the punitive tariffs noting India’s inclination to diversify its energy sources.

The sheet read: “President Trump agreed to remove the additional 25% tariff on imports from India in recognition of India’s commitment to stop purchasing Russian Federation oil. Accordingly, the President signed an Executive Order last Friday removing that additional 25% tariff.”

Textile sector at disadvantage again

Right after India secured the deal with Washington – providing relief to labour intensive sectors like textiles – Bangladesh on Tuesday (February 10) struck a fresh trade deal with the US.

Dhaka secured zero reciprocal tariffs for a “to-be-specified volume” textile and apparel goods and a 19% reciprocal tariff compared to 20% earlier.

The volume of duty-free exports would depend on Dhaka’s imports of “U.S.-produced cotton and man-made fibre textile inputs” from Washington.

This puts Indian garment manufacturers at a disadvantage again as the differential between New Delhi and Dhaka has halved from 2% to 1% (India faces an 18% US tariff). This could also adversely affect India’s cotton yarn exports to Bangladesh.

Bangladesh is also pushing for a Free Trade Agreement (FTA) with the European Union after India secured tariff-free export to the coalition. In 2024, India accounted for around 5% of the EU’s textile and apparel imports, while China led with 28%, followed by Bangladesh (22%), Turkey (11%), Vietnam (6%).

Bangladesh concludes election and historic referendum

Bangladesh witnessed two key events this week – the Election Commission held the first parliamentary election since the ouster of former PM Sheikh Hasina (in a Gen Z-led rebellion in 2024) alongside a referendum for an overhaul of the country’s democratic framework.

Approximately 59 per cent of the 127.7 million eligible voters exercised their franchise in the Muslim-majority country of 175 million.

BNP to helm Dhaka after 20 years

The Bangladesh Nationalist Party (BNP) secured a victory by a landslide on Friday, paving the way for its return to power after 20 years. The party won 212 seats out of the 300 in Parliament.

Party chairman Tarique Rahman, 60, is poised to become the first male Prime Minister of Bangladesh in 35 years. The son of former PMs Ziaur Rahman and Khaleda Zia, Tarique was in exile for 17 years, returning to Dhaka only last December, just days before his mother passed away.

What does this mean for India?

The last time the BNP was at the helm was during Khaleda Zia’s tenure from 2001-06, when it formed an alliance with the country’s largest Islamist party Jamaat-e-Islami. Relations with New Delhi were strained during this period as anti-India terrorist groups and insurgent groups operated freely on Bangladeshi soil.

However, in the run-up to the 2026 polls, in an interview with The Indian Express, one of Rahman’s closest advisors, Mahdi Amin, hinted at a reconfiguration of ties with the country’s neighbour.

“We would appreciate bilateral relations based on mutual trust, mutual interest — a reciprocal relation where we can serve both nations with equality, fairness and justice. I believe there are great opportunities to work together, not only within the neighbourhood, but for the wider world,” Amin said.

PM Modi spoke with Tarique Rahman and congratulated him on the “remarkable victory.”

BNP Election Management Committee chairman Nazrul Islam Khan thanked the PM and said “relations between the two countries and the bonds between their peoples will grow even stronger,” Dhaka Tribune reported.

A municipal worker cleans a road near the chairman office of the Bangladesh Nationalist Party (BNP) a day after the national parliamentary election in Dhaka. (AP Photo)

A changed political landscape

With the Muhammad Yunus-led interim government placing a ban on Hasina’s Awami League in May 2025 under the Anti-Terrorism Act, the country is left with a radically different political landscape. The 2026 polls marks the first in Bangladesh where the “boat” symbol is absent from ballots.

Jamaat’s re-emergence

The Jamaat – spearheading a coalition of 11 parties, including the student-led National Citizens Party (NCP)– has emerged as the principal opposition with 68 seats, marking its best electoral performance since the birth of the South Asian country, Prothom Alo reported. The party only had 17 seats in Parliament when it was part of the BNP-led ruling coalition.

In 2025, its youth wing, the Chhatra Shibir, won in student elections in universities across Bangladesh, including the epicenter of historic political movements – Dhaka University.

The party has re-emerged from the fringes after Bangladesh’s High Court banned it from participating in elections since the 2014 polls. After Hasina’s ouster in 2024, the ban was lifted and several of its leaders were released from prison alongside leaders of the BNP.

The Awami League had been at odds with the party since the war for Bangladesh’s independence, when the latter collaborated with West Pakistan. Forming militias, like the Razakars, the group attempted to crush the movement – killing thousands of civilians, committing atrocities against women and minorities. Several of its top leaders were sentenced to death for their role in the war crimes.

National Citizens Party questions electoral process

The Jamaat’s alliance partner, the National Citizens Party (NCP), is a newly-formed party comprising student leaders who played a pivotal role in overthrowing Sheikh Hasina’s regime after galvanising the anti-quota protests in July 2024.

While the Jamaat conceded defeat, the NCP alleged result manipulation, seeking an EC audit. NCP spokesperson Asif Mahmud Shojib Bhuyain announced at an emergency press conference that the party has “clear evidence of result tampering” targeting the 11‑party alliance’s leading candidates.

The July National Charter referendum

The country is currently bracing for a dramatic overhaul of its democratic and administrative setup with the passing of the July National Charter in a referendum held simultaneously with the general election on Thursday.

Notably, the referendum witnessed a higher voter turnout (60.26 per cent) than the general election (59 per cent), signifying a strong desire for democratic reform. Around 68.06% voters chose the “Yes” option in the ballot.

Till 2024, the country was dominated by two parties – Hasina’s Awami League and the Bangladesh Nationalist Party – with periodic episodes of military coups and instances of abuse of state instruments by the executive.

What are the changes on the way?

With the referendum passed, the country’s political setup is set to change completely. Here are some of the key changes proposed:

• Bicameral Parliament – An Upper House consisting of 100 members will be formed, and seats will be distributed in proportion to the votes received by the political parties in the national election.
• 10 year cap on PM tenure – The Charter introduces a strict 10-year (two-term) cap for any individual serving as PM.
• To ensure free and fair elections, the election-time caretaker government, the Election Commission, and other constitutional institutions will be constituted in accordance with the procedures described in the Charter.
• Legislative freedom – Now MPs will be allowed to vote against party lines without losing their seat, except on money bills or no-confidence motions.
• Appointment of SC Justices – To ensure division of power, an independent Judicial Appointments Commission (JAC), led by the Chief Justice, will be formed, reducing the executive’s role in judicial appointments.
• Deputy Speaker and key committee chairs must be from the Opposition.

The referendum will also change the national identity of Bangladesh. As per the Constitution’s Article 6(2), citizens are defined as “Bangalees”. The Charter proposes an amendment to replace “Bangalee” with “Bangladeshi” to accommodate all ethnic and linguistic minorities.

A Constitutional Reform Council will be formed to complete the reforms within 180 working days from its first session.

Apple Daily founder sentenced to 20 years

Jimmy Lai, a Hong Kong-based pro-democracy activist and media mogul, was sentenced to 20 years in prison on Monday, marking the harshest sentence for a national security offence awarded in the region so far.

Lai is the founder of Apple Daily, a now-defunct Chinese language tabloid, which was at the forefront of the 2019 Hong Kong protests, which were triggered by the decision to amendment to an Extradition Bill. Critics feared the move could have been used by Beijing to target political critics residing in the enclave. Lai had personally taken part in some of the demonstrations.

Currently 78-years-old, Lai has spent more than 1,800 days in solitary confinement. (AP Photo)

Currently 78-years-old, Lai has spent more than 1,800 days in solitary confinement, facing conspiracy charges for publishing seditious material. In December 2025, he was convicted for these charges and also found guilty of “conspiracy to collude with foreign forces” – a charge stemming from his meetings with US politicians.

The Hong Kong court also handed out sentences to six former employees of Apple Daily.

Beijing has dismissed calls from Western governments for Lai’s release as “blatant interference” in the country’s internal affairs.

Another chapter in Hong Kong’s eroding autonomy

Hong Kong, a former colony of Britain, was returned to China in 1997, but it has witnessed a gradual erosion of its autonomy at the hands of the Chinese Communist Party (CCP) in the mainland.

In June 2019, the Hong Kong government proposed an amendment to the Fugitive Offenders Ordinance, a move that would have allowed criminal suspects in the city to be extradited to mainland China.

The decision caused concern that Beijing could use the law to target political critics of the CCP, raising broader concerns about the city’s judicial independence and its special status under the “one country, two systems” principle.

The CCP backed the local government and condemned protestors for what it viewed as a threat to national sovereignty. The authorities attempted to crack down on the protests, but eventually, the Extradition Bill was withdrawn later that year.

Protesters march on the streets against the extradition bill in Hong Kong in 2019. (AP Photo)

However, in 2020, leveraging the restrictions in place during the Covid-19 pandemic, the Standing Committee of the National People’s Congress (the legislative body) in Beijing passed a National Security Law, sharply curtailing dissent and reshaping the political landscape in the CCP’s favour. Lai’s arrest followed soon after.

String of crackdowns and consolidating power

Lai is one among many influential figures who have fallen prey to CCP’s campaign aimed at cutting out what it calls “foreign influence,” and silencing anyone who challenge its authority.

In the last few years, the CCP has purged various entrepreneurs and celebrities who have been critical of the regime, targeting many of them in anti-graft cases. Giant corporations, like Alibaba and Tencent, have also faced regulatory crackdowns, aligned with the party’s goal to curb corporate influence over society.

Many view this repressive campaign under Xi as a step toward consolidating control over the country’s political affairs as Beijing grows more assertive towards Taiwan.

Those within the state and security apparatus weren’t spared either. Since 2023, the top leadership of the Chinese People’s Liberation Army (PLA) has seen several officials getting purged. Last month, Zhang Youxia, a top general and second in command of the military after Xi, was removed from office.

The move resonated with Mao Zedong’s famous slogan: “Political power grows out of the barrel of a gun.” Mao, the first leader of the Communist Chinese republic, was also the Chairman of the CCP Central Military Commission (CMC) until his death.

President Xi is also the CCP General Secretary and the head of the CMC, making him the head of the state, party and military. He consolidated authority further by removing presidential term limits in 2018, making him the most powerful person in the country since the era of Mao.

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