The US has reduced the countervailing duty rate imposed on Bangladeshi products from 20% to 19%.
At the same time, it has been decided to provide no reciprocal tariff benefits on the export of certain apparel products made using cotton and synthetic fibers imported from the US.
A bilateral agreement in this regard was signed between the two countries on Monday (February 9) night Bangladesh time in Washington DC. Sources in the Ministry of Commerce confirmed this.
The agreement was signed on behalf of Bangladesh by Commerce Adviser Sheikh Bashiruddin and National Security Adviser Khalilur Rahman.
US Trade Representative (USTR) Ambassador Jamieson Greer signed on behalf of the United States.
The agreement was finalized after almost nine months of negotiations since April last year.
Among the Bangladesh delegation, Commerce Secretary Mahbubur Rahman, Lutfe Siddiqui, special assistant to the chief adviser on international affairs, also participated virtually.
After signing the agreement, Sheikh Bashiruddin said: “This agreement will take the bilateral economic and trade relations between Bangladesh and the United States to a new historical height. As a result, the opportunities for products to enter the markets of both countries will increase significantly.”
National Security Adviser Khalilur Rahman, the chief negotiator of the Bangladesh team, said: “Bangladesh exporters will get additional benefits as a result of reducing the reciprocal tariff from 20% to 19%. In addition, zero duty benefits on certain textile and readymade garment products will inject new momentum into our ready-made garment sector.”
Sources in the Ministry of Commerce said that the agreement was approved by the Advisory Council on Monday.
It will come into effect once formal notifications are issued by both countries.
US President Donald Trump had announced on April 2, 2025, the imposition of retaliatory tariffs at various rates on products from about 100 countries around the world.
At that time, the tariff rate for Bangladesh was set at 37%. Later, in August last year, it was reduced to 20%. With the latest agreement, it was further reduced to 19%.
In addition, the US has promised to launch a special process under which certain textile and apparel products made in Bangladesh using cotton and man-made fibers produced in the US will receive zero reciprocal tariff benefits in the US market.