Dhaka: Bangladesh has secured a reduced 19 per cent tariff under a trade agreement with the United States that would exempt some textiles and garments manufactured with US materials, interim government chief Muhammad Yunus said.
In an X post on Monday, he said Washington had “committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using US-produced cotton and man-made fibre to receive zero reciprocal tariff in (the) US market”.
Yunus, known for his pro-US stance, said the deal was reached after nine months of negotiations since April last year.
Meanwhile, the US Treasury Department or any office of the Trump administration made no immediate comment on the development.
According to Commerce Secretary Mahbubur Rahman, Bangladesh’s key export-earning ready-made garments (RMG) made from cotton and synthetic fibres imported from the US would enjoy zero reciprocal duty under the deal.
He said the agreement was signed in Washington by Commerce Adviser Sheikh Bashir Uddin and US Trade Representative (USTR) Jamieson Greer.
Commerce ministry officials said apart from cotton, the deal includes provisions for importing US wheat, soybean, and LNG, refraining from imposing tariffs on e-commerce, complying with US-mandated intellectual property rights standards, and supporting US proposals for reforming the World Trade Organisation (WTO).
Bangladesh recently agreed to purchase 25 aircraft from US aerospace giant Boeing, with an estimated cost of Tk 30,000-35,000 crore as part of broader efforts to ease the US tariffs.
According to Bangladesh’s Export Promotion Bureau (EPB), the US remains Bangladesh’s largest export market.
The South Asian nation in August last year secured a reduction in US tariffs on its exports to 20 per cent, down from 37 per cent initially proposed by Washington.
Bangladeshi policymakers earlier said they expected the tariff could be brought down to 15 per cent.
Business analysts, however, said the deal offered much-needed relief to Bangladesh’s apparel exporters as the RMG sector accounts for more than 80 per cent of its export earnings and employs some 4 million workers, mostly women, and contributes about 10 per cent to gross domestic product (GDP).
The US earlier this month announced to lower tariffs to 18 per cent from 50 per cent for India, seeking New Delhi to halt Russian oil purchases and lower trade barriers.
The commerce secretary said the recently concluded US-India trade deal might have influenced Washington’s decision to cut the tariff “possibly due to geopolitical considerations”.
Bangladesh’s closest competitor, Vietnam, received a 20 per cent reciprocal tariff, while Pakistan, Cambodia and Indonesia have also been subjected to a 19 per cent tariff.
The development comes as Bangladesh heads for the February 12 general election to choose new leadership and bring an end to the 18-month Yunus-led interim regime, which took charge after the fall of Sheikh Hasina’s Awami League government following a violent student-led street campaign dubbed the July Uprising.
PTI
