The US has reduced reciprocal tariffs on Bangladeshi goods to 19% as part of a new bilateral trade agreement and agreed to allow some Bangladeshi textile products duty-free entry.
The United States has announced a reduction in reciprocal tariffs on Bangladeshi goods to 19% under a new bilateral trade agreement, as reported by Bangladesh's interim chief adviser, Mohammad Yunus. This decision comes after nine months of negotiations and represents a significant shift from previous tariff proposals that had reached as high as 37% before being negotiated down first to 20% and now to the current rate.
Yunus emphasized the importance of this trade agreement in preserving jobs within Bangladesh and strengthening the country's position in the global textile supply chain. The agreement also includes commitments from the US to grant duty-free market access to certain Bangladeshi textile and apparel products made from American raw materials. This marks a pivotal development for the Bangladeshi economy, as the textile industry is a major contributor to the country's GDP and employment.
The formal signing of the agreement was undertaken by Bangladeshi officials, including commercial adviser Sheikh Bashir Uddin and national security adviser Khalilur Rahman, signaling strong cooperation between the two nations. This trade initiative is anticipated to bolster Bangladesh's export capabilities and enhance its competitive edge in the global market, particularly as the country navigates the complexities of post-pandemic economic recovery and seeks to expand its trade relationships.
