The United States and Bangladesh have announced an Agreement on Reciprocal Trade intended to expand market access, reduce tariffs, and strengthen cooperation across trade, labor, regulatory, and security areas. The agreement has been announced but has not yet entered into force, and implementation guidance and an effective date have not yet been announced.
Under the agreement, the United States will reduce the reciprocal tariff rate to 19% on imports of originating goods from Bangladesh, with certain products identified in Annex III of the PTAAP, receiving a 0% reciprocal tariff rate. The United States will also establish a mechanism allowing a specified volume of textile and apparel goods from Bangladesh to enter the United States at a 0% reciprocal tariff rate, with the permitted volume tied to Bangladesh’s use of U.S.-origin textile inputs, including U.S.-produced cotton and man-made fibers.
Bangladesh has committed to provide significant preferential market access for U.S. industrial and agricultural goods, including chemicals, machinery and parts, medical devices, motor vehicles and parts, information and communications technology equipment, energy products, and a range of agricultural products such as soy, dairy, beef, poultry, tree nuts, and fruit. Bangladesh also agreed to address key non-tariff barriers, including accepting U.S. vehicle safety and emissions standards, recognizing U.S. FDA certificates for medical devices and pharmaceuticals, removing restrictions on U.S. remanufactured goods, and recognizing U.S. sanitary and phytosanitary measures for food and agricultural products.
The agreement further includes commitments by Bangladesh on digital trade, labor rights, environmental protection, intellectual property enforcement, anti-corruption, and customs modernization, as well as enhanced cooperation between the United States and Bangladesh on supply chain resilience, export controls, and duty evasion. The parties also noted planned commercial transactions, including aircraft procurement, purchases of approximately $3.5 billion in U.S. agricultural products, and U.S. energy purchases valued at approximately $15 billion over 15 years, and stated that domestic formalities will be completed prior to the agreement’s entry into force.
The complete details of the agreement can be found at the following link: Joint Statement on United States-Bangladesh Agreement on Reciprocal Trade