Washington, Feb 10
The United States and Bangladesh signed a legally binding agreement on reciprocal trade, setting tariff schedules and broad commitments on market access, labor standards, and digital trade, US officials said.
US Trade Representative Jamieson Greer signed the pact with Bangladesh's adviser for commerce, textiles and jute, and civil aviation and tourism, Sheikh Bashir Uddin, at a ceremony in Washington, according to a statement from the USTR's office.
"Under President Trump's leadership, the United States is pursuing a trade policy that delivers real results for American workers and businesses," Greer said. He called the deal "a meaningful step forward in opening markets, addressing trade barriers, and creating new opportunities for American exporters."
The agreement is the first reciprocal trade pact the United States has signed in South Asia, the USTR said.
Under the deal, Bangladesh agreed to provide preferential market access for US industrial and agricultural goods. Those include chemicals, machinery, medical devices, energy products, soy, dairy, poultry, beef, tree nuts, and fruit.
The United States will apply reciprocal tariff rates to imports from Bangladesh under defined schedules. Most additional tariffs will not exceed 19 per cent, except for products specifically listed in the agreement.
Bangladesh is also committed to reducing non-tariff barriers affecting US exports. The pact requires acceptance of US regulatory standards for vehicles, medical devices, and pharmaceuticals, as well as recognition of US safety and inspection systems for agricultural products.
The agreement includes detailed labor provisions. Bangladesh agreed to protect internationally recognized labor rights, strengthen enforcement of labor laws, and prohibit the importation of goods wholly or partially produced by forced or compulsory labor.
The pact also addresses labor practices in export processing zones and calls for reforms linked to past unrest in the garment sector. Digital trade is covered in a separate chapter.
According to the agreement, Bangladesh agreed not to impose discriminatory digital services taxes, to permit cross-border data transfers for business purposes, and to support a permanent moratorium on customs duties on electronic transmissions.
The pact links trade commitments to economic and national security cooperation. Bangladesh agreed to coordinate with the United States on export controls, sanctions enforcement, and supply chain security. It is also committed to limiting certain technology and defense purchases from countries the United States considers a security concern.
Commercial annexes outline Bangladesh's intent to increase purchases of US goods. These include agricultural products such as wheat, soy, and cotton, long-term purchases of US liquefied natural gas, and expanded procurement of US civilian aircraft and military equipment.
The agreement will enter into force 60 days after both sides complete domestic legal procedures. Either party may terminate the pact with 60 days' written notice.
According to a US fact sheet, the United States recorded a $6.1 billion goods trade deficit with Bangladesh in 2024.
The deal follows the Trump administration's push for "reciprocal" trade arrangements that reduce tariffs and non-tariff barriers abroad while maintaining leverage through enforcement provisions. US officials say similar agreements have been concluded in recent months with Malaysia, Cambodia, El Salvador, Guatemala, and Argentina.
- IANS
Reader Comments
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.