Bangladesh and the United States on Monday signed a reciprocal tariff agreement aimed at strengthening bilateral trade ties and expanding market access for businesses in both countries.
The agreement was signed on behalf of Bangladesh by Commerce Adviser Sheikh Bashir Uddin and National Security Adviser Khalilur Rahman, while US Trade Representative Ambassador Jamieson Greer represented the American side.
The deal follows more than nine months of negotiations that began in April last year.
Describing the agreement as a breakthrough, Sheikh Bashir Uddin said it ushers in a new phase in economic cooperation between the two nations.
“This agreement marks a historic advancement in our trade relationship and will significantly improve access for exporters from both sides,” he said.
Under the deal, the US will lower its reciprocal tariff rate on Bangladeshi goods to 19 percent, down from the original 37 percent and the revised 20 percent set in August last year.
In a major boost for Bangladesh’s apparel sector, Washington also committed to introducing a special mechanism that would allow certain Bangladeshi textile and garment products made using US-grown cotton and man-made fibres to enter the American market duty-free.
National Security Adviser Khalilur Rahman, who led Bangladesh’s negotiating team, said the tariff cut and the zero-duty facility would offer a significant competitive edge to Bangladeshi exporters.
“This agreement will create new opportunities for our garment industry and strengthen our position in the global market,” he noted.
The Council of Advisers approved the agreement on Monday, and it will come into effect once formal notifications are issued by both governments.
Commerce Secretary Mahbubur Rahman and Assistant US Trade Representative Brendan Lynch were also present at the signing ceremony.
