New Delhi: Bangladesh and the US on Monday signed an Agreement on Reciprocal Tariff, marking a significant step forward in bilateral trade relations after nine months of negotiations that began in April last year.
The agreement was signed on behalf of Bangladesh by Commerce Adviser Sheikh Bashir Uddin and National Security Adviser Khalilur Rahman, while US Ambassador Jamieson Greer, the US Trade Representative, signed for the American side.
Welcoming the development, Greer credited Chief Adviser Muhammad Yunus for providing overall leadership during the negotiations and commended the Bangladesh delegation for its sustained efforts.
He said the agreement would align Bangladesh more closely with US trade policy and strengthen economic engagement between the two countries.
Bashir Uddin, who led the Bangladesh negotiating team, described the pact as a milestone in bilateral economic relations. He said the agreement would significantly improve market access for both countries and open new opportunities for trade and investment.
Under the agreement, the US will further reduce the reciprocal tariff on Bangladeshi goods to 19%, down from the original 37% and the revised rate of 20% introduced in August last year.
The US has also committed to setting up a mechanism that will allow certain Bangladeshi textile and apparel products made using US-produced cotton and man-made fibre to enter the American market at zero reciprocal tariff.
Khalilur Rahman, who served as Bangladesh’s chief negotiator, said the tariff reductions would provide a competitive boost to Bangladeshi exporters. He added that the zero-tariff facility for select garments using US inputs would offer a strong incentive to the country’s ready-made garment sector.
In a post on X, Yunus said: “The agreement was approved by the Council of Advisers on Monday and will be operational once notifications are issued by the two sides.”
