Dhaka: The agreement on Reciprocal Tariff between Bangladesh and the United States was signed on Monday, marking a significant development in bilateral trade relations. On the Bangladesh side, the signatories were Commerce Adviser Sk Bashir Uddin and National Security Adviser Khalilur Rahman, while Ambassador Jamieson Greer, US Trade Representative, represented the US, according to the Chief Adviser’s Press Wing.
According to Bangladesh Sangbad Sangstha, the negotiations on the agreement spanned over nine months since April last year. Ambassador Greer commended Chief Adviser Muhammad Yunus for his leadership during the negotiations and praised the Bangladesh negotiating team for their efforts. He stated that the agreement would align Bangladesh with US trade policy.
Commerce Adviser Sk Bashir Uddin expressed that the agreement marked a new level in bilateral economic and trade relations. He highlighted that it would substantially enhance market access for both countries. The US will reduce the reciprocal tariff to 19 percent, down from the original 37 percent, which was decreased to 20 percent in August last year.
Moreover, the US has committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using US-produced cotton and man-made fiber to receive zero reciprocal tariff in the US market. NSA Rahman noted that this reduction and exemption would benefit exporters and provide significant impetus to Bangladesh’s garments sector.
The agreement received approval from the Council of Advisers on Monday and will become operational once notifications are issued by both parties. The signing ceremony was attended by Commerce Secretary of Bangladesh Mahbubur Rahman and Assistant US Trade Representative Brendan Lynch.