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Bangladesh opens dairy, agricultural sectors to US in new trade deal, Bangladeshi textiles get zero tariffs
Bangladesh's textile and apparel goods will receive a zero reciprocal tariff. In return, it will purchase around $3.5 billion of agriculture products from US.
The United States has announced an Agreement on Reciprocal Trade (Agreement) with Bangladesh to strengthen bilateral ties and lowering reciprocal tariffs on Bangladesh imports to 19 per cent.
Under the agreement, Bangladesh is set to open its market for US industrial and agricultural goods, procure cars and aircraft, and in return its textiles and apparel goods will be charged zero tariffs in the US.
A White House statement said Dhaka will open its market for US industrial and agricultural goods, including chemicals, medical devices, machinery and motor parts, dairy products, poultry, fruits and tree nuts. The trade deal also calls for Bangladesh to import cars and motorcycles, including their parts, from the US, along with aircraft.
In return, textile and apparel goods manufactured in Bangladesh will receive a zero reciprocal tariff rate, the statement said.
“The United States will reduce the reciprocal tariff rate, as initially set forth in Executive Order 14257 of April 2, 2025, to 19 percent on originating goods of Bangladesh, and will identify products from the list set out in Annex III (Potential Tariff Adjustments for Aligned Partners) to Executive Order 14346 of September 5, 2025 (Modifying the Scope of Reciprocal Tariffs and Establishing Procedures for Implementing Trade and Security Agreements) to receive a zero percent reciprocal tariff rate,” a White House statement said.
Muhammad Yunus, chief adviser to Bangladesh’s interim government, said US had “committed to creating a mechanism” that would allow select Bangladeshi textile and apparel goods made with US-produced cotton and man-made fibre to enter the US market at zero reciprocal tariff.
What to know of US-Bangladesh trade deal
The two sides also highlighted the recent and planned commercial deals, including aircraft procurement, roughly $3.5 billion in purchases of US agricultural goods, and an estimated $15 billion in US energy product imports over 15 years.
Dhaka recently agreed to purchase 25 aircraft from US aerospace giant Boeing, with an estimated cost of Tk 30,000-35,000 crore ($2.46-2.87 Billion) as part of broader efforts to ease the US tariffs.
As a part of the deal, Bangladesh will purchase around $3.5 billion of US agriculture products, including wheat, soy, cotton, and corn.
Bangladesh Chief Adviser Muhammad Yunus’s Special Envoy on International Affairs Lutfey Siddiqi lauded the trade deal with the US, which brought down the tariff from the earlier 37 per cent.
"Exemplary teamwork and sheer hard work by so many over several months, working around the clock across time zones. What started as 37% is now down to 19% with additional benefits for selected items," Siddiqi said. India is also in the middle of a trade deal with the US, which would bring down the reciprocal tariffs on Indian goods from 25 per cent to 18 per cent. Neighbouring Pakistan also has a reciprocal tariff of 19 per cent.
