What is the new reciprocal tariff rate for Bangladesh exports to the US?

Bangladesh has secured a reduced reciprocal tariff rate of 19% on its exports to the United States under a new bilateral trade agreement.

Will Bangladeshi garments made with US materials get special access to the US market?

Yes, selected Bangladeshi garments made with US materials will be allowed to enter the American market without duties, as per the new agreement.

How does this trade agreement impact Bangladesh's economy?

The agreement is crucial for protecting jobs in the readymade garment sector, which is the backbone of Bangladesh's economy, and strengthening its position in the global textile supply chain.

Home / Business and Economy / Bangladesh Secures Tariffs Reduced to 19% in US Trade Deal

Bangladesh Secures Tariffs Reduced to 19% in US Trade Deal

10 Feb

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Summary

Bangladesh secured a 19% reciprocal tariff on exports to the US.
Selected garments made with US materials will get zero tariff access.
The deal protects jobs and strengthens Bangladesh's global textile role.

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.