Bangladesh Secures Tariffs Reduced to 19% in US Trade Deal

Bangladesh has successfully negotiated a new bilateral trade agreement with the United States, securing a reduced reciprocal tariff rate of 19% on its exports. This achievement, finalized on Monday, represents a significant concession from Washington, which had initially proposed tariffs as high as 37%.

Furthermore, the agreement includes provisions for selected Bangladeshi garments manufactured using US materials to gain duty-free access to the American market. This move is described by interim government chief adviser Muhammad Yunus as vital for safeguarding employment and reinforcing Bangladesh's standing within the international textile industry.

The readymade garment sector, the cornerstone of Bangladesh's economy, heavily relies on exports to the US. This sector accounts for over 80% of the nation's export earnings and employs approximately four million people. The reduced tariff is anticipated to enhance the competitiveness of Bangladeshi manufacturers, particularly amidst ongoing economic pressures.

This trade accord is being seen as an effort by the interim government to project economic stability ahead of the upcoming general elections. The negotiations involved key officials from both nations, including Bangladesh's Commerce Adviser Sheikh Bashir Uddin and US Ambassador Jamieson Greer.