NewKerala.com

US and Bangladesh Sign Historic Reciprocal Trade Agreement

The United States and Bangladesh have signed a landmark Agreement on Reciprocal Trade, the first of its kind for the US in South Asia. The deal will see the US reduce its reciprocal tariff on Bangladeshi goods to 19% and establish a zero-tariff mechanism for specific textile exports using US inputs. US Trade Representative Jamieson Greer stated the agreement opens markets and creates opportunities for American exporters. Bangladesh officials hailed the pact as a historic new level in bilateral economic relations.

Key Points: US-Bangladesh Sign Reciprocal Trade Deal

  • First such US trade deal in South Asia
  • US to reduce reciprocal tariff to 19%
  • Zero tariff for some Bangladesh textiles using US inputs
  • Aims for more balanced trade relationship
3 min read

US, B'desh ink agreement on reciprocal trade

The US and Bangladesh sign a landmark trade agreement to reduce tariffs and boost market access, strengthening bilateral economic ties.

"marks a meaningful step forward in opening markets, addressing trade barriers, and creating new opportunities - Jamieson Greer"

Washington DC, February 10

The United States and Bangladesh on Monday signed the United States-Bangladesh Agreement on Reciprocal Trade, marking a significant step in strengthening bilateral economic and trade relations, according to a statement by the Office of the US Trade Representative.

The agreement was signed by US Trade Representative Jamieson Greer and Bangladesh's Adviser for Commerce, Textiles and Jute, and Civil Aviation and Tourism, Sheikh Bashir Uddin. Also present at the signing were Bangladesh Commerce Secretary Mahbubur Rahman and Assistant US Trade Representative Brendan Lynch.

US Trade Representative Jamieson Greer joined Bangladesh's Adviser for Commerce, Textiles and Jute, and Civil Aviation and Tourism Sheikh Bashir Uddin in signing the United States-Bangladesh Agreement on Reciprocal Trade, a statement by the Office of the US Trade Representative 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," the statement quoted Greer as saying.

He further said, "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. I commend Bangladesh's Commerce Adviser Sheikh Bashir Uddin for his constructive engagement to achieve a more balanced and reciprocal trading relationship."

Bangladesh Chief Adviser Muhammad Yunus said the agreement represents a "historically new level" in bilateral economic ties.

A statement by the Bangladesh Chief Adviser of the Interim Government said, "After the signing, Commerce Adviser Sheikh Bashir Uddin, who led the Bangladesh side in negotiations, said that the agreement marked a historically new level in our bilateral economic and trade relations. "It will provide substantially enhanced access of Bangladesh and the US to each other's respective markets", he said."

The statement further said, the US will further reduce the reciprocal tariff to 19%, which was originally set at 37% and later reduced to 20% in August last year. In addition, the US 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 US market.

"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 who was Bangladesh's chief negotiator.

The agreement was approved by the Council of Advisers on Monday and will be operational once notifications are issued by the two sides.

Present during the signing were Commerce Secretary of Bangladesh Mahbubur Rahman, and Assistant US Trade Representative, Brendan Lynch.

- ANI

Share this article:

Reader Comments

P
Priyanka N
Interesting move by the US. Focusing on South Asia. The zero tariff on garments made with US cotton is a smart way for America to support its own farmers while boosting Bangladesh's industry. Hope this creates more jobs and stability in our neighbourhood. 🤝
A
Aman W
As someone in the textile business in Surat, this news is a bit worrying. Bangladesh is already a strong competitor. With these new tariff benefits, their exports to the US will become even more price-competitive. Our policymakers need to take note and act fast.
S
Sarah B
Good to see economic partnerships strengthening. A stable and prosperous Bangladesh is good for the entire subcontinent's security and economic growth. This deal seems mutually beneficial.
V
Vikram M
The "reciprocal" part is key. Hope it truly is balanced. Sometimes these deals favour the larger economy. If it helps Bangladesh develop, that's positive. But India must double down on 'Make in India' and secure its own trade advantages. Jai Hind! 🇮🇳
K
Kriti O
While the economic angle is clear, I respectfully think the article misses the human impact. Will the garment workers in Bangladesh see better wages and conditions from this, or will just the factory owners benefit? That's the real measure of success for such an agreement.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50