
New bilateral pact cuts tariffs and unlocks US-Bangladesh market access for dairy, industrial and apparel sectors.
Bangladesh and the United States have signed a reciprocal trade agreement that significantly reshapes economic ties between Dhaka and Washington, cutting the U.S. tariff on Bangladeshi exports to 19% from previously higher levels and offering zero tariff access for specific textile and apparel products made with U.S.-sourced materials. This milestone deal follows nine months of negotiations and is seen as a major enhancement to bilateral trade relations.
Under the pact, Bangladesh has agreed to open its market to a broad spectrum of U.S. industrial and agricultural goods, encompassing chemicals, medical devices, machinery, motor vehicles and parts, soy products, dairy goods, beef, poultry, tree nuts, and fruit. The expanded market access for U.S. farm produce — including cereals and protein-rich staples — is aimed at increasing two-way trade flows and diversifying import sources.
The U.S. side has committed to establishing a mechanism to allow zero reciprocal tariffs on certain ready-made garments (RMG) and textiles from Bangladesh that are manufactured using U.S. cotton or man-made fibres. By tying tariff relief to the use of U.S. inputs, the deal creates a conditional competitive advantage for Bangladeshi apparel exporters in the U.S. market, a sector that accounts for a substantial portion of the country’s export earnings.
Complementing tariff changes, Bangladesh has also agreed to ease non-tariff barriers — including adopting U.S. safety and certification standards — and to pursue substantial purchases of U.S. goods. These include approximately $3.5 billion in U.S. agricultural products and nearly $15 billion in U.S. energy product imports over the next decade, alongside procurement of American-made aircraft, underpinning deeper commercial integration.
For international dairy sectors, the trade deal signals enhanced access for U.S. dairy exports to Bangladesh, where market diversification is a priority amid global supply shifts. At the same time, the pact’s focus on textiles and industrial goods reflects broader geopolitical priorities in South Asia, as neighboring countries navigate similar negotiations with the United States and seek to position their key export industries competitively.
Source: Hindustan Times — https://www.hindustantimes.com/world-news/bangladesh-opens-dairy-agricultural-sectors-to-us-in-new-trade-deal-bangladeshi-textiles-get-zero-tariffs-101770716385498.html
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