Bangladesh-US Trade Tariff Reduction Deal

Bangladesh secured a reduced 19% tariff on its exports to the United States under a new trade agreement, with a commitment from Washington to establish a mechanism for zero reciprocal tariff on certain textile and apparel goods made with US-produced cotton and man-made fibre. This deal, announced by interim government chief Muhammad Yunus, followed nine months of negotiations. In return, Bangladesh agreed to open its markets wider for American industrial and agricultural products, ease non-tariff barriers, and support US proposals for reforming the World Trade Organization. The agreement also includes recent and upcoming commercial deals, such as Bangladesh's purchase of 25 aircraft from Boeing. This development is crucial for Bangladesh's economy, as the ready-made garments sector accounts for over 80% of its export earnings. The deal comes ahead of Bangladesh's general election and follows similar tariff reductions the United States offered to India.