‘Historically new level’: US cuts tariffs on Bangladeshi goods to 19% under new trade deal – The Times of India

The United States and Bangladesh on Monday reached an Agreement on Reciprocal Trade as both sides seek to deepen their “bilateral economic relationship”. Under the arrangement, Bangladesh’s exports to the American market will face a 19% tariff, slightly below the earlier rate of 20%. The signing brought together US trade representative Jamieson Greer and Bangladesh’s adviser overseeing commerce, textiles and jute, and civil aviation and tourism, Sheikh Bashir Uddin. Bangladesh commerce secretary Mahbubur Rahman and assistant US trade representative Brendan Lynch were also present.Speaking on the agreement, Greer said, “Under President Trump’s leadership, the United States is pursuing a trade policy that delivers real results for American workers and businesses, strengthening our economic and security partnerships abroad.” He further added, “today’s signing of the Agreement on Reciprocal Trade with Bangladesh is the first in South Asia and marks a meaningful step forward in opening markets, addressing trade barriers, and creating new opportunities for American exporters.”Bangladesh’s chief adviser Muhammad Yunus said that the agreement indicates a “historically new level” in relations between the two nations.The latest deal also reduces the reciprocal tariff from the initial figure of 37% and the 20% that had been in place since August last year. As part of the deal, Washington has also committed to establish a pathway for certain textile and apparel shipments from Bangladesh made with US cotton and man-made fibre to enter the United States at a zero reciprocal tariff. “The reduction of reciprocal tariff will grant further advantage to our exporters, while zero reciprocal tariff on specific textile and apparel exports from Bangladesh using US inputs will give substantial added impetus to our garments sector”, said NSA Rahman, Bangladesh’s chief negotiator.Dhaka said that the agreement was approved by the council of advisers approved and the pact will come into force once both governments issue formal notifications.