The US and Bangladesh established a trade agreement which decreases tariffs between the two countries. The agreement decreases US tariffs to 19 percent on Bangladeshi products. The deal was signed on Monday.
Agreement Signing and Confirmation
US Trade Representative Jamieson Greer and Bangladeshi representative Sheikh Bashiruddin signed the agreement. The White House confirmed the development through an official statement. The agreement follows earlier tariff adjustments made by the US.
Background of Tariff Changes
Former US President Donald Trump established a 37 percent tariff on all Bangladeshi imports. This rate was later reduced to 20 percent. The new agreement establishes a 19 percent tariff rate which Western countries must pay to establish trade relations with Bangladesh.
Textiles and Cotton Commitment
The US will provide textile product exemptions for Bangladeshi textile and apparel product through the agreement. Bangladesh will use US-produced cotton as part of the agreement. This was confirmed by Bangladesh advisor Muhammad Yunus through a social media post.
Impact of Regional Trade Comparisons
The garment industry represents the main source of economic value for Bangladesh. The country has faced pressure after the India–US trade agreement set tariffs at 18 percent. Bangladesh wanted to reach a deal which would establish lower tariffs during the election period but the final rate remained higher than India’s.
Market Access Commitments
Bangladesh will permit US businesses to sell their products in Bangladesh according to the trade agreement, which allows Bangladesh to access multiple US goods. The list of products includes industrial goods and agricultural products and chemicals and medical equipment and auto parts and energy-related products.
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