Daijiworld Media Network – Washington
Washington, Feb 10: The United States has reduced reciprocal tariffs on Bangladeshi imports to 19 per cent under a new bilateral trade agreement, offering zero-duty access to selected textile and apparel products manufactured using US-produced materials.
Announcing the development on Monday, Bangladesh interim chief adviser Muhammad Yunus said Washington had agreed to create a special pathway allowing certain Bangladeshi garments made with US inputs to enter the American market tariff-free.
“Washington has committed to creating a pathway for selected Bangladeshi garments made with US materials to receive zero tariff access,” Yunus wrote in a post on X.
The tariff relief follows nine months of negotiations between Dhaka and Washington. The US had initially proposed tariffs of up to 37 per cent on Bangladeshi exports in April last year. After sustained talks, the rate was brought down to 20 per cent in August, and has now been further reduced to 19 per cent.
Yunus described the agreement as a major step towards protecting jobs and reinforcing Bangladesh’s standing in the global textile supply chain.
According to an official statement issued by Dhaka, the agreement was signed on the Bangladesh side by Commerce Adviser Sheikh Bashir Uddin and National Security Adviser Khalilur Rahman, while US Trade Representative Ambassador Jamieson Greer signed on behalf of Washington.
Greer praised Yunus and the negotiating team for successfully concluding the deal.
“This agreement will strengthen Bangladesh’s position in US trade policy,” he said, as quoted in the statement.
The White House also confirmed that both sides had agreed to address non-tariff barriers affecting trade in Bangladesh.
The readymade garments sector, the backbone of Bangladesh’s economy, accounts for over 80 per cent of total export earnings and employs around four million workers, most of them women from rural and low-income backgrounds. The sector contributes nearly 10 per cent to the country’s GDP.
Industry leaders said the lower tariff rate would help Bangladeshi exporters remain competitive in the US market, one of their largest destinations.
Manufacturers have faced mounting pressure in recent years due to rising production costs, higher energy prices, currency volatility, and stricter compliance requirements imposed by international buyers.
Earlier this month, US President Donald Trump announced a trade agreement with India, cutting tariffs on Indian goods to 18 per cent from 50 per cent.
The trade agreement comes at a sensitive time as Bangladesh heads to the polls on Thursday, following rule by an interim administration since August 2024, when former prime minister Sheikh Hasina fled to India, where she continues to remain.
Fresh violence was reported ahead of the elections, with over 40 people, including women, injured in clashes between local party workers late on Wednesday night.
The interim government has been keen to project economic stability and credibility in the run-up to the elections, with trade policy emerging as a key focus area.