After nine months of diplomatic and inter-ministerial negotiations, Bangladesh has finalized the Agreement on BD-US Reciprocal Trade (ART) with the United States. The deal reduces the previously imposed 20 percent reciprocal tariff to 19 percent and grants zero-duty access for about 2,500 Bangladeshi products in the US market, according to a statement from the Chief Adviser’s Office. The agreement follows the US Executive Order No. 14257 of April 2, 2025, which had imposed reciprocal tariffs on most countries.
The ART covers a wide range of areas including goods, services, customs procedures, trade facilitation, investment, e-commerce, labor, environment, and transparency. Bangladesh’s commitments align with existing WTO, ILO, and TRIPS agreements, meaning no new conditions were imposed. The textile and apparel sector received special benefits, allowing duty-free access for garments made with US cotton and synthetic fibers. Bangladesh also included an exit clause in the agreement, unlike other countries.
Officials expect the ART to help Bangladesh maintain competitiveness in the US market, expand trade and investment, and generate broader economic benefits.