The United States and Bangladesh have finalized the United States-Bangladesh Agreement on Reciprocal Trade, concluding negotiations aimed at strengthening bilateral economic relations. Under the revised framework, Bangladeshi exports to the US will now face a 19% tariff—slightly lower than the 20% imposed in August and significantly below the original reciprocal rate of 37%.
The agreement was signed by US Trade Representative Jamieson Greer and Bangladesh’s Adviser for Commerce, Textiles and Jute, and Civil Aviation and Tourism, Sheikh Bashir Uddin. The signing took place in the presence of Bangladesh Commerce Secretary Mahbubur Rahman and Assistant US Trade Representative Brendan Lynch.
Key Provisions of the Agreement
- Concessions for Bangladesh
Washington will cut the reciprocal tariff under Executive Order 14257 to 19% on Bangladeshi goods. Selected items listed in Annex III of Executive Order 14346 will qualify for zero-duty access.
The US has also agreed to establish a mechanism allowing certain Bangladeshi textile and apparel exports to enter duty-free. The eligible volume will depend on Bangladesh’s imports of US textile inputs, such as cotton and man-made fibres, linking the benefit to American exports. - Market Access for US Products
Bangladesh will provide wide preferential entry for US industrial and agricultural goods, including chemicals, medical devices, machinery, automobiles and components, ICT equipment, energy supplies, soy products, dairy, beef, poultry, nuts, and fruit. - Removal of Non-Tariff Barriers
Both sides will work to eliminate Bangladeshi non-tariff obstacles to trade and investment. Measures include recognizing vehicles that meet US safety and emission standards, accepting certificates from the US Food and Drug Administration, and ending licensing restrictions on remanufactured US products and parts. - Digital Trade and Regulatory Reforms
Bangladesh will facilitate trusted cross-border data flows, support a permanent ban on customs duties for electronic transmissions under the World Trade Organization, digitize customs procedures, open its insurance sector, and adopt science- and risk-based systems for food imports. - Labour Commitments
Dhaka has pledged to uphold internationally recognised labour rights, prohibit imports produced through forced labour, strengthen freedom of association and collective bargaining, and tighten enforcement mechanisms. - Environmental and Governance Standards
Bangladesh will maintain strong environmental safeguards, improve border trade facilitation, curb market distortions linked to subsidies and state-owned enterprises, and reinforce comprehensive anti-corruption laws. - Intellectual Property Protection
The agreement includes stronger intellectual property enforcement, participation in global treaties, and new provisions on geographical indications to ensure continued US market access, especially for cheese and meat producers using common product names. - Strategic and Security Cooperation
Both countries will deepen cooperation on economic and national security, strengthen supply chains, promote innovation, and collaborate against unfair trade practices, duty evasion, and export control risks. - Investment Support
US agencies such as the Export-Import Bank of the United States and the US International Development Finance Corporation may consider supporting investments in priority sectors in Bangladesh alongside private US firms. - Major Commercial Agreements
The two sides also acknowledged recent and upcoming deals in agriculture, energy, and technology. These include aircraft procurement, purchases of about $3.5 billion worth of US farm products such as wheat, soy, cotton, and corn, and energy imports estimated at $15 billion over the next 15 years.
Both governments said they would move swiftly, following their respective internal procedures, to complete the formalities needed for the Agreement on Reciprocal Trade to come into force.
