• Bangladesh secures a reduced 19% tariff rate on exports to the U.S.
• Exemptions for certain textiles using U.S. materials will receive zero tariffs.
• The agreement aims to strengthen bilateral economic ties and market access.

Bangladesh has successfully negotiated a 19% tariff rate on exports to the United States, down from the 20% previously imposed. The deal, referred to as the United States–Bangladesh Agreement on Reciprocal Trade, represents a significant reduction from an initial tariff of 37%. This agreement aims to enhance the bilateral economic relationship between the two nations after a lengthy negotiation period of nine months, initiated in April of the previous year, according to Al Jazeera, Reuters, India Times, BBC, and India Times.

The U.S. will allow certain textiles and garments made from U.S. materials to enter duty-free, effectively granting Bangladesh exemptions for specific products like garments made from U.S.-produced cotton and man-made fibers, enhancing the competitiveness of its apparel sector. The ready-made garment sector is critical for Bangladesh, making up over 80% of its total export revenue and employing approximately 4 million workers, according to Reuters, BBC, and India Times.

As part of this trade deal, Bangladesh has committed to providing preferential market access for U.S. agricultural and industrial goods, including chemicals, machinery, medical devices, and various food products. The U.S. has similarly committed to lowering non-tariff barriers to facilitate easier entry of American goods into Bangladesh, emphasizing the mutual benefits this agreement brings to both countries, according to BBC and India Times.

Moreover, both nations aim to strengthen their cooperation related to labor rights and environmental protection under this agreement. Bangladesh has pledged to uphold internationally recognized labor rights and enhance protections amid ongoing reforms aligned with international standards. The deal signifies a notable advancement in trade relations, with U.S. Trade Representative Jamieson Greer declaring it a "meaningful step towards creating new opportunities" for American and Bangladeshi businesses, according to Al Jazeera and Reuters.