US Bangladesh trade agreement: The United States and Bangladesh have agreed on a new bilateral trade agreement, under which the reciprocal tariff on exports from Bangladesh to the US has been reduced to 19 percent. Along with this, select textile products have been given zero-duty access. This decision is being seen as important in the context of changing economic and strategic equations in South Asia.
Agreement after nine months of talks
This agreement was finalized after several rounds of talks in Washington. From Bangladesh’s side, Commerce Adviser Sheikh Bashir Uddin and National Security Adviser Khalilur Rahman signed the deal, while the US side was represented by US Trade Representative Jamieson Greer. Under the agreement, ready-made garments made from US raw materials—especially cotton and synthetic fiber—will get entry into the US market without additional duty, which is expected to directly benefit Bangladesh’s textile industry.
New paths for imports and exports
As an important part of the agreement, Bangladesh has agreed to ease imports from the US of wheat, soybeans, LNG, medical equipment, machinery, and e-commerce related products. In addition, the proposal by Bangladesh to purchase 25 aircraft from Boeing is also included, with an estimated cost said to be 30 to 35 thousand crore taka. Along with this, Bangladesh has assured compliance with intellectual property rights and support for US reform proposals at the World Trade Organization.
Reduction in tariff
In April 2025, the US administration had indicated tariffs of up to 37 percent on Bangladeshi exports. Later, after talks that continued until August 2025, this was reduced to 20 percent, and now through the new agreement it has been brought down to 19 percent. This has brought Bangladesh on par with competing countries such as Pakistan, Cambodia, and Indonesia, while Vietnam still faces a 20 percent tariff. Analysts see this as a strategic move in the context of regional and global trade balance.
Impact on jobs and the economy
The US is Bangladesh’s largest export market. The ready-made garment sector accounts for a large share of Bangladesh’s total exports and makes an important contribution to the economy. This sector provides employment to millions of people, a large number of whom are women. The new agreement is expected to strengthen Bangladesh’s position in the global supply chain and reduce non-tariff barriers. The US administration has said this is also a step that increases opportunities for its farmers and producers.
Diplomacy before elections
This announcement has come at a time when general elections are due in Bangladesh and the interim government’s term is in its final phase. Under the leadership of Mohammad Yunus, this is being seen as a major diplomatic achievement for the current government.
Utkarsh works as a Sub-Editor at 1Tak News. Technology and gadgets are his main beats, and he also tracks automobiles. A graduate of Mahatma Gandhi Kashi Vidyapeeth, he began his journalism career in 2023 and has built experience across digital media platforms like 1Tak. Besides technology, he also has considerable experience covering national affairs, politics, research, and international news.
