The trade agreement between Bangladesh and the USA has led to a reduction in the reciprocal tariff to 19 percent from the previous 20 percent, according to Commerce Secretary Mahbubur Rahman. Under this agreement, the USA has granted duty-free or reduced duty access to 2,500 Bangladeshi products, while Bangladesh reciprocated by allowing 4,400 American products to enter duty-free or at a lower duty rate.
Notably, garment items manufactured using American cotton will face zero duty when exported to the USA. Additionally, various products including pharmaceuticals, fisheries, particle board, and food items will now enjoy duty-free access to the US market.
The agreement was signed by Commerce Adviser Sheikh Bashir Uddin and National Security Adviser Khalilur Rahman from Bangladesh, and Ambassador Jamieson Greer, the US Trade Representative, on behalf of the USA. The negotiations, which lasted for nine months starting from April last year, were praised by Ambassador Greer, who highlighted Chief Adviser Muhammad Yunus’s leadership and the efforts of the Bangladesh negotiating team.
Commerce Adviser Sheikh Bashir Uddin expressed that the agreement signifies a significant milestone in bilateral economic and trade relations, providing enhanced market access for both Bangladesh and the USA. The reciprocal tariff is set to be further reduced to 19 percent, down from the initial 37 percent and the subsequent reduction to 20 percent in August last year.
Furthermore, the US has committed to establishing a mechanism that will allow certain textile and apparel goods from Bangladesh utilizing US-produced cotton and man-made fiber to receive zero tariff in the US market. National Security Adviser Rahman, the chief negotiator for Bangladesh, highlighted the advantages this agreement brings to exporters and the garments sector.
The agreement has been approved by the Council of Advisers and will come into effect once the necessary notifications are issued by both parties. The signing ceremony was attended by the commerce secretary of Bangladesh and Assistant US Trade Representative Brendan Lynch.
