The United States and Bangladesh signed an Agreement on Reciprocal Trade, reducing tariffs on Bangladeshi exports from 20% to 19%. This follows an initial 37% rate lowered to 20% last August under President Trump’s trade policy. The deal aims to strengthen economic ties and open markets for American exporters.
Provisions for Textiles
The agreement includes a pathway for zero reciprocal tariffs on certain Bangladesh textile and apparel shipments using US cotton and man-made fibers. Volumes for these exemptions tie to US textile exports to Bangladesh. Bangladesh’s garment sector, key to 80% of its exports, stands to gain significantly.
Background and Reactions
The pact was signed by US Trade Representative Jamieson Greer and Bangladesh officials, including adviser Sheikh Bashir Uddin. Bangladesh Chief Adviser Muhammad Yunus called it a “historically new level” in relations. It takes effect after formal notifications from both governments.
