Washington, Feb 10 (.) The United States and Bangladesh have reached a reciprocal trade agreement that will reduce tariffs on Dhaka-origin goods to 19%, provide exemptions for certain textile and garment products, and deepen bilateral economic ties, Washington said on Tuesday.
The deal also grants “exemptions for certain textile and garment products” manufactured using US-origin materials, according to the agreement. Washington said it would establish “a mechanism that will allow for certain textile and apparel goods from Bangladesh to receive a zero reciprocal tariff rate.” The volume of eligible imports will be determined in relation to Bangladesh’s use of US textile inputs, including cotton and man-made fibers.
The White House statement also mentions purchases of approximately USD 3.5 billion of US agricultural products, including wheat, soy, cotton, and corn. Purchases of energy products, with an estimated value of USD 15 billion over 15 years. It also cited purchases of aircraft.
The agreement builds on the US-Bangladesh Trade and Investment Cooperation Forum Agreement signed in 2013 and is expected to provide what US officials described as unprecedented access to each other’s markets.
The United States and Bangladesh said the agreement is aimed at “deepening bilateral economic ties” and “expanding market access” for exporters in both countries.
Under the deal, Bangladesh will grant “significant preferential market access” for U.S. industrial and agricultural goods, including chemicals, medical devices, machinery, motor vehicles and parts, information and communications technology equipment, energy products, soybeans, dairy products, beef, poultry, tree nuts and fruit.
Both countries committed to addressing “non-tariff barriers that affect bilateral trade and investment,” with Bangladesh agreeing to accept US vehicle safety and emissions standards, recognise US Food and Drug Administration certifications for medical devices and pharmaceuticals, and remove restrictions on U.S. remanufactured goods and parts.
Bangladesh also committed to permitting “the free transfer of data across trusted borders,” supporting a permanent moratorium on customs duties on electronic transmissions at the World Trade Organization, adopting science- and risk-based standards for agricultural imports, easing barriers in the insurance sector, digitalizing customs procedures and implementing good regulatory practices.
On labor, Bangladesh pledged to protect “internationally recognised labour rights,” including prohibiting the import of goods produced with forced labor, amending labor laws to fully protect freedom of association and collective bargaining, and strengthening enforcement.
The agreement includes commitments on environmental protection, anti-corruption measures, intellectual property enforcement and addressing distortions caused by subsidies and state-owned enterprises. Bangladesh agreed to “groundbreaking provisions on geographical indications” to preserve US market access, particularly for cheese and meat products using common names.
The two countries also said they would strengthen “economic and national security alignment” to enhance supply chain resilience, combat duty evasion, cooperate on export controls and share information on inbound investment.
Washington said US institutions including the Export-Import Bank of the United States and the US International Development Finance Corporation, would “consider supporting investment financing in critical sectors in Bangladesh,” subject to eligibility and US law.
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