Bangladesh and US Ink New Trade Deal Granting Tariff Concessions on Apparel Made with US Materials

Washington D.C. Bangladesh has reached a new trade agreement with the United States that grants tariff exemptions for certain garments and textiles made using American materials. This agreement was made public on Monday. 

Under the agreement, the US will reduce the tariff rate imposed on textiles imported from Bangladesh from 20 percent to 19 percent. In return, Bangladesh has agreed to further open its market for American agricultural and industrial products.

The White House stated in a joint press release that this agreement will strengthen economic ties between the two countries and provide unprecedented market access to both parties. The US will grant duty-free entry to apparel and textiles made in Bangladesh using American cotton and man-made (synthetic) yarn. The volume of such goods will be determined based on the amount of textiles the US exports to Bangladesh.

The textile industry is considered the backbone of Bangladesh's economy. This sector accounts for over 80 percent of the country's total exports and employs approximately 4 million workers. Under the agreement, Bangladesh will provide greater market access to US goods such as chemicals, medical equipment, auto parts, soy products, and meat. The Bangladeshi government has not yet given an official response on this matter.