U.S., Bangladesh Strike Trade Agreement
Under the new deal, exports from Bangladesh to the US will face a 19% tariff, down from 20% set last August, according to reports.
Muhammad Yunus, chief adviser of the interim government, wrote on X: “Washington has committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using US-produced cotton and man-made fiber to receive a zero tariff in the US market.”
Earlier this month, neighboring India reached a trade agreement with the US that sets an 18% tariff rate but does not offer a similar exemption for apparel exports.
The White House said Bangladesh will grant preferential access for US industrial and agricultural products, including farm and food goods. Tariffs will drop to zero on poultry, pork, seafood, rice, corn, and cereal grains, while some products, such as almonds, will see duties phased out over five to ten years.
The agreement also includes major purchases by Bangladesh: Bangladesh Airlines will acquire 14 Boeing aircraft, and Dhaka will buy an unspecified quantity of US military equipment.
The deal, signed just four days before national elections in Bangladesh, has faced criticism from multiple quarters, according to reports.
Bangladesh, the world’s second-largest clothing exporter after China, has seen its garment shipments—the backbone of its economy—decline over the past two years. The ready-made garment sector generates over 80% of the country’s export revenue, employs around 4 million workers, and contributes nearly 10% to GDP.
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