In a significant development for Bangladesh's textile industry, a new trade agreement has been finalized between the United States and Bangladesh. This agreement, announced on February 9, follows extensive negotiations and underscores Bangladesh's status as the second-largest garment producer globally, just behind China. Under the terms of the new accord, the U.S. will lower tariffs on Bangladeshi products from 20% to 19% and will exempt specific apparel items made from U.S. materials from duties altogether.

The agreement is expected to enhance trade relations between the two countries, particularly benefiting Bangladesh’s apparel sector, which heavily relies on exports to the U.S. market. By allowing tariff exemptions on garments made from American cotton and synthetic textiles, the U.S. aims to incentivize trade and boost the competitiveness of Bangladeshi products in the international market. The volume of garment exports eligible for tariff exemption will depend on the quantity of textiles exported from the U.S. to Bangladesh.

This trade deal reflects a strategic move by the U.S., potentially to strengthen economic ties in the face of global supply chain challenges and competition from other exporting nations. The agreement not only promises to support Bangladesh's economy but also points to a U.S. desire to maintain influential trade relations in South Asia, particularly with countries that are key players in global textile production.