Feb 9 (Reuters) – Bangladesh has secured a reduced 19% U.S. tariff under a trade agreement signed between the two countries on Monday, granting exemptions for some textiles and garments manufactured with U.S. material.
Muhammad Yunus, chief advisor heading Bangladesh’s interim government, said Washington had “committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using U.S.-produced cotton and man-made fiber to receive zero reciprocal tariff in (the) US market.”
The White House said Bangladesh had agreed to provide significant preferential market access for U.S. industrial and agricultural goods, including chemicals, medical devices, machinery and motor vehicles and parts, soy products and dairy goods, beef, poultry, tree nuts and fruit.
Bangladesh will also ease non-tariff barriers by accepting U.S. vehicle safety and emissions standards, recognising U.S. Food and Drug Administration certifications and removing import restrictions on remanufactured goods, the White House added.
The nations also noted recent and upcoming commercial deals including aircraft procurement, around $3.5 billion in purchases of U.S. agricultural products, and an estimated $15 billion in U.S. energy product purchases over 15 years.
Yunus said the agreement followed nine months of negotiations that began in April last year.
Bangladesh also pledged to uphold internationally recognized labour rights and strengthen environmental protections.
The South Asian nation in August had secured a reduction in U.S. tariffs on its exports to 20%, down from 37% initially proposed by Washington, offering much-needed relief to the nation’s apparel exporters.
The readymade garments sector is the backbone of Bangladesh’s economy, accounting for more than 80% of total export earnings, employing about 4 million workers and contributing about 10% to gross domestic product.
Bangladesh goes to the polls on Thursday to elect new leadership after being governed by an interim government since August 2024, when former Prime Minister Sheikh Hasina fled to India, where she remains.
(Reporting by Nilutpal Timsina in Bengaluru and Ryan Jones in Toronto; Editing by Tomasz Janowski, Peter Graff and Mark Porter)
