The United States has reduced the countervailing duty on Bangladeshi products from 20 per cent to 19 per cent, while deciding not to extend reciprocal tariff benefits on certain apparel exports made using cotton and synthetic fibres imported from the US.
The development comes as Bangladesh prepares for its February 12 general election, aimed at selecting new leadership and ending the 18-month Yunus-led interim regime that took charge after the fall of Sheikh Hasina’s Awami League government following a violent, student-led street movement known as the July Uprising.
Deal Signed in Washington After Months of Talks
According to Dhaka Tribune, a bilateral agreement formalising the move was signed late Monday night (February 9, Bangladesh time) in Washington DC. The deal was signed on behalf of Bangladesh by Commerce Adviser Sheikh Bashiruddin and National Security Adviser Khalilur Rahman, while US Trade Representative Ambassador Jamieson Greer represented the United States.
The agreement was finalised after nearly nine months of negotiations that began in April last year.
Tariff Relief, Zero Duty for Select Garment Exports
National Security Adviser Khalilur Rahman, who led Bangladesh’s negotiating team, said the reduction in reciprocal tariffs from 20 per cent to 19 per cent would provide additional benefits to exporters. He added that zero-duty access for certain textile and ready-made garment products would give fresh momentum to Bangladesh’s RMG sector.
Commerce Secretary Mahbubur Rahman said Bangladesh’s key export-earning ready-made garments made from cotton and synthetic fibres imported from the US would enjoy zero reciprocal duty under the agreement, PTI reported.
Wider Trade Commitments, Boeing Deal Included
Commerce ministry officials said the agreement also includes provisions for importing US wheat, soybean and liquefied natural gas (LNG), refraining from imposing tariffs on e-commerce, complying with US-mandated intellectual property rights standards, and supporting US proposals for reforming the World Trade Organisation.
Bangladesh has also recently agreed to purchase 25 aircraft from US aerospace major Boeing, estimated to cost between Tk 30,000 crore and Tk 35,000 crore, as part of broader efforts to ease US trade tariffs. According to Bangladesh’s Export Promotion Bureau, the United States remains the country’s largest export market.
