The United States and Bangladesh have entered into a new trade deal aimed at lowering tariffs on the majority of Bangladeshi exports. Under this agreement, the tariff rate for exports to the US will be set at 19%, a slight reduction from the previously established 20% rate in August. This move is expected to enhance Bangladesh's export capabilities and strengthen its trade relationship with the US.

A significant aspect of this trade deal is the commitment from Washington to allow certain textile and apparel items made from US-sourced cotton and man-made fibers to be imported into the US at a zero-tariff rate. This provision could prove particularly beneficial for Bangladesh, which relies heavily on its textile sector for economic growth and job creation. Muhammad Yunus, the chief adviser for Bangladesh's interim government, emphasized the potential of this agreement to bolster the country's economic prospects.

The timing of this trade agreement is notable, as it follows India's own recent trade arrangement with the US, which grants an 18% tariff but does not include the same concessions for apparel. This dynamic could affect the competitive landscape for exports in the region, potentially positioning Bangladesh favorably compared to India in the textile market. The agreement signifies a continued interest from the US in fostering economic ties with South Asian countries, especially in light of global supply chain shifts.