US grants zero tariff for Bangladeshi textiles using American cotton

Bangladesh has signed a reciprocal trade agreement with the United States that grants zero tariffs for its textile and apparel exports manufactured using American-produced cotton and man-made fiber. The deal, finalized on Monday, also reduces the general reciprocal tariff rate on Bangladeshi goods entering the U.S. market to 19%, down from a previous rate of 20%.

Key provisions and expected impact

Under the new terms, the U.S. will establish a mechanism to implement the zero-tariff rule for qualifying garments. Bangladesh's National Security Adviser Khalilur Rahman, the chief negotiator, stated the move would provide a "significant boost" to the country's crucial apparel sector. The broader tariff reduction from 20% to 19% is expected to offer additional advantages for a wider range of Bangladeshi exporters, enhancing market access.

Negotiation process and official signatories

The agreement culminates over nine months of negotiations that began in April of last year. It was signed by Bangladesh's Commerce Adviser Sheikh Bashir Uddin and National Security Adviser Khalilur Rahman, with U.S. Trade Representative Jamieson Greer signing for the United States. Greer commended the Bangladeshi team's efforts and noted the pact would align Dhaka more closely with U.S. trade policy objectives.

Formal approval and next steps

The trade deal received approval from Bangladesh's Council of Advisers on Monday. It will formally take effect after both sides complete the necessary official notifications. Bangladeshi officials anticipate the agreement will substantially enhance bilateral market access, strengthening economic ties between the two nations and supporting the South Asian country's export-driven economy.