Bangladesh, US Sign Reciprocal Tariff Agreement, Boosting Bilateral Trade Ties

Bangladesh and the United States on Monday signed the Agreement on Reciprocal Tariff, marking a significant milestone in bilateral economic and trade relations between the two countries.

The agreement was signed in Washington DC by Commerce Adviser of Bangladesh Sheikh Bashir Uddin and National Security Adviser Khalilur Rahman on behalf of Bangladesh, while US Trade Representative Ambassador Jamieson Greer signed on behalf of the United States.

Negotiations on the agreement spanned more than nine months, beginning in April last year. The deal was approved by Bangladesh’s Council of Advisers earlier on Monday and will come into effect once official notifications are issued by both sides.

US Trade Representative Ambassador Jamieson Greer praised Chief Adviser Muhammad Yunus for his overarching leadership throughout the negotiation process and commended the Bangladesh negotiating team for their “incredible efforts.” He said the agreement would align Bangladesh more closely with US trade policy.

Following the signing, Commerce Adviser Sheikh Bashir Uddin, who led the Bangladesh delegation during negotiations, described the agreement as a historic breakthrough.
“This agreement marks a new level in our bilateral economic and trade relations. It will provide substantially enhanced access for both Bangladesh and the United States to each other’s respective markets,” he said.

Under the agreement, the United States will further reduce the reciprocal tariff on Bangladeshi goods to 19 percent. The tariff was originally set at 37 percent and was later reduced to 20 percent in August last year.

In addition, the United States committed to establishing a mechanism that will allow certain textile and apparel products from Bangladesh—manufactured using US-produced cotton and man-made fiber—to enter the US market with zero reciprocal tariff.

National Security Adviser Khalilur Rahman, who served as Bangladesh’s chief negotiator, said the tariff reduction would significantly benefit Bangladeshi exporters.
“The reduction of reciprocal tariff will grant further advantages to our exporters, while zero reciprocal tariff on specific textile and apparel exports using US inputs will provide substantial added impetus to our garments sector,” he said.

Commerce Secretary of Bangladesh Mahbubur Rahman and Assistant US Trade Representative Brendan Lynch were present during the signing ceremony.