The United States has decreased its reciprocal tariff on Bangladeshi exports from 20 percent to 19 percent following the signing of a new trade agreement aimed at enhancing economic relations between the two countries.
As part of the agreement, the US will provide duty-free or reduced-duty access to approximately 2,500 Bangladeshi products, while Bangladesh will allow entry for around 4,400 American products under similar terms.
Commerce Secretary Mahbubur Rahman mentioned that Bangladesh plans to gradually expand duty-free access to more US goods within the next ten years. Notably, garments manufactured using US cotton, pharmaceuticals, fisheries products, particle board, and certain food items will enjoy zero-duty access to the US market.
The trade deal was sealed by Commerce Adviser Sheikh Bashir Uddin and National Security Adviser Khalilur Rahman on behalf of Bangladesh, and by US Trade Representative Ambassador Jamieson Greer for Washington. The negotiations, which commenced in April the previous year and spanned over nine months, culminated in the signing ceremony held in a hybrid format.
In a statement from the Chief Adviser’s Office, Ambassador Greer commended Chief Adviser Prof Muhammad Yunus for his leadership, stating that the agreement would align Bangladesh with US trade policy.
Adviser Bashir Uddin hailed the agreement as a significant milestone in bilateral trade relations, while NSA Khalilur Rahman emphasized that the tariff reduction and zero-duty access for US cotton-based textiles would greatly benefit Bangladeshi exporters.
The agreement received approval from the Council of Advisers and will become effective once both parties issue formal notifications.
This trade pact follows previous tariff adjustments, with the US initially imposing a 37 percent reciprocal tariff on Bangladeshi exports in April of the preceding year, which was later lowered to 20 percent post-negotiations.
In addition to the tariff changes, Bangladesh has committed to acquiring 25 Boeing aircraft, with 14 deals already finalized at a value ranging between Tk 30,000 crore and Tk 35,000 crore. The country also plans to boost imports of US cotton, soybeans, liquefied petroleum gas, and other commodities.
Previously, Bangladesh agreed to import 3.5 million tonnes of US wheat over a five-year period, with 660,000 tonnes already procured.
Data from the US Trade Representative reveals that bilateral trade in goods and services reached $12.4 billion in 2024, showing a 3 percent increase from the previous year. Notably, the trade deficit stood at $6.1 billion, with Bangladesh exporting goods worth $8.4 billion to the US and importing $2.3 billion worth of American products.
