Bangladesh has secured a reduced U.S. tariff rate of 19%, down from the earlier proposed level of 37%, which had subsequently been lowered to 20%. The agreement also provides exemptions for certain textile and apparel products manufactured using U.S.-produced cotton and man-made fibre.

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Bangladesh Chief Adviser Muhammad Yunus said the United States has committed to creating a mechanism that allows qualifying garments and textile products using U.S. inputs to enter the U.S. market at zero reciprocal tariff.

Market Access Commitments

According to a White House statement, formally titled the ‘United States–Bangladesh Agreement on Reciprocal Trade,’ the deal offers exporters from both countries expanded access to each other’s markets.
Bangladesh has agreed to provide preferential market access for a range of U.S. industrial and agricultural products, including chemicals, medical devices, machinery, motor vehicles and parts, soy products, dairy goods, beef, poultry, tree nuts and fruit.

The agreement also includes commitments to ease non-tariff barriers. Bangladesh will accept U.S. vehicle safety and emissions standards, recognise U.S. Food and Drug Administration certifications, and remove import restrictions on remanufactured goods.

Commercial And Strategic Purchases

Under the agreement, national carrier Biman Bangladesh will purchase fourteen Boeing aircraft, with options for additional orders. Over the next 15 years, Bangladesh has also committed to expanding commercial engagement with the United States, including approximately $3.5 billion in agricultural imports and an estimated $15 billion in energy purchases.

The Office of the United States Trade Representative said the agreement is intended to strengthen economic ties and improve trade certainty between the two countries.

Regional Context

Bangladesh is the first South Asian country to complete a trade agreement with the U.S under the current framework. Its tariff rate of 19% is marginally higher than the 18% rate secured by India under an interim arrangement, while negotiations on a comprehensive India-U.S. bilateral trade agreement remain ongoing.