The United States has reduced the reciprocal tariff on Bangladeshi goods to 19 per cent under a newly signed bilateral trade agreement, marking a further easing from the earlier rate of 37 per cent and a subsequent reduction to 20 per cent in August last year.
The agreement was signed on Monday following negotiations that began in April last year and continued for more than nine months. On behalf of Bangladesh, the agreement was signed by Commerce Adviser Sk Bashir Uddin and National Security Adviser Khalilur Rahman, while the US side was represented by Jamieson Greer, the United States Trade Representative.
Following the signing, Bangladesh’s commerce adviser said the agreement marked a historic step in bilateral economic and trade relations between the two countries. He noted that the framework would provide substantially enhanced access for both Bangladesh and the United States to each other’s markets.
The US trade representative praised Chief Adviser Professor Muhammad Yunus for his overall leadership during the negotiation process and commended the Bangladesh negotiating team for its efforts. He said the agreement would align Bangladesh more closely with US trade policy.
Under the terms of the agreement, the United States has also committed to establishing a mechanism that will allow certain textile and apparel goods from Bangladesh to enter the US market at a zero reciprocal tariff rate, provided they are manufactured using US-produced cotton and man-made fibre. Bangladesh’s national security adviser, who served as the country’s chief negotiator, said the reduction in reciprocal tariffs would provide additional advantages to exporters, while zero tariffs on selected textile and apparel products would give a significant boost to the garments sector.
The agreement received approval from Bangladesh’s Council of Advisers on Monday and will come into force once formal notifications are issued by both sides.
Also present at the signing were Bangladesh Commerce Secretary Mahbubur Rahman and Brendan Lynch, Assistant United States Trade Representative.
