US reduces Bangladesh’s tariffs to 19% before polls

Dhaka: Bangladesh has secured a reduced 19 per cent tariff under a trade agreement with the United States that would exempt some textiles and garments manufactured with US materials, interim government chief Muhammad Yunus said.

In an X post on Monday, he said Washington had "committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using US-produced cotton and man-made fibre to receive zero reciprocal tariff in (the) US market". Yunus, known for his pro-US stance, said the deal was reached after nine months of negotiations since April last year.

Meanwhile, the US Treasury Department or any office of the Trump administration made no immediate comment on the development. According to Commerce Secretary Mahbubur Rahman, Bangladesh's key export-earning ready-made garments (RMG) made from cotton and synthetic fibres imported from the US would enjoy zero reciprocal duty under the deal.

He said the agreement was signed in Washington by Commerce Adviser Sheikh Bashir Uddin and US Trade Representative (USTR) Jamieson Greer. Commerce ministry officials said apart from cotton, the deal includes provisions for importing US wheat, soybean, and 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 (WTO).