Bangladesh-US Tariff Deal: Muhammad Yunus, chief advisor heading Bangladesh's interim government, on Monday said his government has secured a reduced 19% US tariff under a trade agreement signed between the two countries, granting exemptions for some textiles and garments manufactured with American material.  

US's Significant Condition In Textile Sector

Washington had committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using US-produced cotton and man-made fiber to receive zero reciprocal tariff in the US market, he added.

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The Bangladesh government shared a statement on X, saying the Agreement on Reciprocal Tariff between Bangladesh and the United States was signed on Monday. On the Bangladesh side, the signatories were Commerce Adviser Sheikh Bashir Uddin and National Security Adviser Khalilur Rahman, and on US side Ambassador Jamieson Greer, US Trade Representative. Negotiations on the agreement spanned over nine months since April last year.

Ambassador Greer lauded Chief Adviser Muhammad Yunus for his overarching leadership of the negotiations process and praised the Bangladesh negotiating team for its "incredible efforts. "This agreement will fit Bangladesh on US trade policy", he said.

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After the signing, Commerce Adviser Sheikh Bashir Uddin, who led the Bangladesh side in negotiations, said that the agreement marked a historically new level in our bilateral economic and trade relations. "It will provide substantially enhanced access of Bangladesh and the US to each other's respective markets", he said.

Earlier in August, Bangladesh had secured a reduction in US tariffs on its exports to 20%, down from 37% initially proposed by Washington, offering much-needed relief to the nation's apparel exporters.

Here Are The Key Highlights Of The Trade Deal

  • The US will further reduce the reciprocal tariff to 19%, which was originally set at 37% and later reduced to 20% in August last year.
  • The US committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using US produced cotton and man-made fiber to receive zero reciprocal tariff in the US market.
  • Washington agrees to create a mechanism for zero reciprocal tariffs.
  • Bangladesh will lower some tariffs over several years, ease non-tariff barriers for US goods.
  • Bangladesh pledges to by $15 billion in US energy, uphold labour, and environmental protections.
  • Biman Bangladesh Airlines will buy at least 14 Boeing jets. The airline first announced a Boeing order last July as negotiations were underway.
  • The US and Bangladesh noted recent and upcoming commercial deals, including aircraft procurement, around $3.5 billion in purchases of US agricultural products, and an estimated $15 billion in US energy product purchases over 15 years.
  • Bangladesh will also purchase an unspecified amount of US. military equipment and limit purchases from certain countries.
  • Bangladesh in August had secured a reduction in US tariffs on its exports to 20%, down from 37% initially
  • proposed by Washington, offering much-needed relief to the nation's apparel exporters.