Bangladesh has secured a reduced 19% U.S. tariff under a bilateral trade agreement signed Monday, with exemptions covering certain textiles and garments produced using U.S.-sourced materials.
Muhammad Yunus, chief advisor heading Bangladesh’s interim government, said Washington had “committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using U.S.-produced cotton and man-made fiber to receive zero reciprocal tariff in (the) U.S. market.”
The White House said Bangladesh had agreed to provide significant preferential market access for U.S. industrial and agricultural goods, including chemicals, medical devices, machinery and motor vehicles and parts, soy products and dairy goods, beef, poultry, tree nuts and fruit.
Bangladesh will also ease non-tariff barriers by accepting U.S. vehicle safety and emissions standards, recognising U.S. Food and Drug Administration certifications and removing import restrictions on remanufactured goods, the White House added.
Bangladesh To Boost U.S. Purchases
The nations also noted recent and upcoming commercial deals including aircraft procurement, around $3.5 billion in purchases of U.S. agricultural products, and an estimated $15 billion in U.S. energy product purchases over 15 years.
According to the U.S.-Bangladesh agreement’s 32-page text released by the U.S. Trade Representative’s office, Biman Bangladesh Airlines intends to purchase 14 Boeing aircraft, with options for additional purchases. The airline first announced a Boeing order last July as negotiations were underway.
Bangladesh also will purchase an unspecified amount of U.S. military equipment and limit purchases from certain countries.
The South Asian low-wage country also pledged to uphold internationally recognized labour rights and strengthen environmental protections.
Yunus said the agreement followed nine months of negotiations that began in April last year.
The South Asian nation in August had secured a reduction in U.S. tariffs on its exports to 20%, down from 37% initially proposed by Washington, offering much-needed relief to the nation’s apparel exporters.
(With inputs from Reuters)
