Bangladesh has successfully negotiated a trade agreement with the United States, securing a reduced 19% tariff for specific textiles and garments made with US materials. This development, announced by interim government chief Muhammad Yunus, is expected to bolster Bangladesh’s economy, particularly its critical ready-made garments (RMG) sector.
The agreement, which was reached after intensive negotiations over the past nine months, sees Washington committing to a mechanism that allows certain goods from Bangladesh to enjoy zero reciprocal tariff in the US market. The move follows Bangladesh’s efforts to lower previously prohibitive tariffs and comes as relief to the country’s apparel exporters.
Commerce Secretary Mahbubur Rahman emphasized the zero-duty advantage for Bangladeshi garments using US cotton and synthetic fibers. The deal is expected to generate significant economic benefits in the lead-up to Bangladesh’s February 12 election, amid broader regional trade rearrangements involving countries like India, Vietnam, and others.