Bangladesh and the United States have signed a trade agreement establishing a 19 percent tariff rate, announced on Monday. The deal includes exemptions for certain textiles and garments made with US materials. Chief Adviser Muhammad Yunus said Washington committed to a mechanism allowing some Bangladeshi apparel using US-produced cotton and man-made fibre to enter the US market with zero reciprocal tariff. The White House confirmed that Bangladesh will grant preferential market access for a wide range of US industrial and agricultural goods.
Under the agreement, Bangladesh will also ease non-tariff barriers by accepting US vehicle safety and emissions standards, recognising Food and Drug Administration certifications, and lifting restrictions on remanufactured goods. The two nations highlighted commercial deals involving aircraft procurement, $3.5 billion in US agricultural purchases, and $15 billion in energy product imports over 15 years. The accord followed nine months of negotiations that began in April last year.
The reduced tariff is expected to help Bangladesh’s apparel sector, which accounts for over 80 percent of export earnings, remain competitive with India, whose tariff rate now stands at 18 percent. The announcement comes days before Bangladesh’s national election under its interim government.
Al Jazeera and Reuters Share Bangladesh has secured a reduced 19 percent tariff rate with the United States under a trade agreement signed between the two countries, granting exemptions for some textiles and garments manufactured with US material. Th
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