The US and Bangladesh signed an Agreement on Reciprocal Trade to boost economic ties. The deal, the first of its kind in South Asia, will reduce tariffs and open markets, with a focus on textile and apparel goods using US-produced materials.
The United States and Bangladesh on Monday signed the United States-Bangladesh Agreement on Reciprocal Trade, marking a significant step in strengthening bilateral economic and trade relations, according to a statement by the Office of the US Trade Representative.
The agreement was signed by US Trade Representative Jamieson Greer and Bangladesh’s Adviser for Commerce, Textiles and Jute, and Civil Aviation and Tourism, Sheikh Bashir Uddin. Also present at the signing were Bangladesh Commerce Secretary Mahbubur Rahman and Assistant US Trade Representative Brendan Lynch.
A Move to Open Markets
US Trade Representative Jamieson Greer joined Bangladesh’s Adviser for Commerce, Textiles and Jute, and Civil Aviation and Tourism Sheikh Bashir Uddin in signing the United States-Bangladesh Agreement on Reciprocal Trade, a statement by the Office of the US Trade Representative said. “Under President Trump’s leadership, the United States is pursuing a trade policy that delivers real results for American workers and businesses, strengthening our economic and security partnerships abroad,” the statement quoted Greer as saying. He further said, “Today’s signing of the Agreement on Reciprocal Trade with Bangladesh is the first in South Asia and marks a meaningful step forward in opening markets, addressing trade barriers, and creating new opportunities for American exporters. I commend Bangladesh’s Commerce Adviser Sheikh Bashir Uddin for his constructive engagement to achieve a more balanced and reciprocal trading relationship.”
A ‘Historically New Level’ in Bilateral Ties
Bangladesh Chief Adviser Muhammad Yunus said the agreement represents a “historically new level” in bilateral economic ties. A statement by the Bangladesh Chief Adviser of the Interim Government said, “After the signing, Commerce Adviser Sheikh Bashir Uddin, who led the Bangladesh side in negotiations, said that the agreement marked a historically new level in our bilateral economic and trade relations. “It will provide substantially enhanced access of Bangladesh and the US to each other’s respective markets”, he said.”
Key Provisions of the Agreement
The statement further said, the US will further reduce the reciprocal tariff to 19%, which was originally set at 37% and later reduced to 20% in August last year. In addition, the US committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using US produced cotton and man-made fiber to receive zero reciprocal tariff in US market.
“The reduction of reciprocal tariff will grant further advantage to our exporters, while zero reciprocal tariff on specific textile and apparel exports from Bangladesh using US inputs will give substantial added impetus to our garments sector”, said NSA Rahman who was Bangladesh’s chief negotiator.
The agreement was approved by the Council of Advisers on Monday and will be operational once notifications are issued by the two sides. Present during the signing were Commerce Secretary of Bangladesh Mahbubur Rahman, and Assistant US Trade Representative, Brendan Lynch. (ANI)
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