U.S. lowers tariffs on Bangladeshi exports to 19% under new trade pact

Email: online@newsofbahrain.com

Washington: After nearly nine months of negotiations, the United States and Bangladesh have concluded a bilateral trade agreement that will reduce U.S. tariffs on most Bangladeshi goods to 19 percent, offering fresh relief to Dhaka’s export-oriented economy. President Trump’s administration agreed to lower the duty rate from earlier proposals that had reached as high as 37 percent, and from the previously adjusted 20 percent.

Under the deal, a mechanism has been introduced allowing certain textiles and apparel made with U.S. cotton or man-made fiber to enter the U.S. market duty-free, a significant benefit for Bangladesh’s garment sector, which accounts for the bulk of its export earnings.

In return, Bangladesh has agreed to broaden market access for U.S. industrial and agricultural products, including machinery, medical devices, soy products and dairy, and to reduce non-tariff barriers by aligning standards with U.S. regulations.

Officials in Dhaka described the agreement as a milestone in economic ties with Washington and said it is expected to strengthen trade flows between the two countries. Formal implementation will begin once both governments complete required administrative notifications.

However, the relatively modest tariff cut only 1 percentage point below the previous rate has drawn mixed reactions from industry.