Bangladesh and the US have finalized a trade agreement that reduces tariffs from 37% to 19%, significantly benefiting Bangladesh's lucrative ready-made garments sector.
Under the deal, Bangladesh has committed to providing preferential market access for certain US industrial and agricultural products, such as chemicals, medical devices, and soya products. In return, the US will ease non-tariff barriers by recognizing US vehicle safety and emissions standards, accepting FDA certifications, and lifting restrictions on remanufactured goods.
The agreement is a major win for Bangladesh's textile industry, which accounts for over 80% of its total export earnings and employs around four million workers. At the reduced tariff rate, Bangladesh will now compete more evenly with neighboring India, whose tariff rate has been set at 18%.
Bangladesh had secured an initial reduction in US tariffs to 20% last year, but this new agreement is seen as a significant step forward. The country's ready-made garments sector will be able to access the large US market without facing crippling tariffs.
The trade deal was announced on Monday and follows nine months of negotiations between the two countries. Bangladesh's chief adviser, Muhammad Yunus, said that Washington had committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using US-produced cotton and man-made fiber to receive zero reciprocal tariff in the US market.
The agreement also includes provisions for commercial deals such as aircraft procurement, purchases of US agricultural products worth $3.5 billion, and estimated energy product purchases of $15 billion over 15 years. The nations have also agreed to uphold internationally recognized labor rights and strengthen environmental protections.
Bangladesh's election is scheduled for Thursday, with the country having been governed by an interim government since August last year when former Prime Minister Sheikh Hasina fled to India.
Under the deal, Bangladesh has committed to providing preferential market access for certain US industrial and agricultural products, such as chemicals, medical devices, and soya products. In return, the US will ease non-tariff barriers by recognizing US vehicle safety and emissions standards, accepting FDA certifications, and lifting restrictions on remanufactured goods.
The agreement is a major win for Bangladesh's textile industry, which accounts for over 80% of its total export earnings and employs around four million workers. At the reduced tariff rate, Bangladesh will now compete more evenly with neighboring India, whose tariff rate has been set at 18%.
Bangladesh had secured an initial reduction in US tariffs to 20% last year, but this new agreement is seen as a significant step forward. The country's ready-made garments sector will be able to access the large US market without facing crippling tariffs.
The trade deal was announced on Monday and follows nine months of negotiations between the two countries. Bangladesh's chief adviser, Muhammad Yunus, said that Washington had committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using US-produced cotton and man-made fiber to receive zero reciprocal tariff in the US market.
The agreement also includes provisions for commercial deals such as aircraft procurement, purchases of US agricultural products worth $3.5 billion, and estimated energy product purchases of $15 billion over 15 years. The nations have also agreed to uphold internationally recognized labor rights and strengthen environmental protections.
Bangladesh's election is scheduled for Thursday, with the country having been governed by an interim government since August last year when former Prime Minister Sheikh Hasina fled to India.
they're basically gettin' access to the huge american market without those crippling tariffs, which is gonna be super helpful for them economy-wise 
plus they're also gettin' some concessions on non-tariff barriers too, which should make it easier for them companies to do business in us 
its like a win-win for both countries, but i gotta ask, why was this deal pushed through so quickly? did the bangladeshi election schedule or somethin' have anythin' to do with it?
but this one for bangladesh & us is def a win 
i mean, 80% of their export earnings come from the ready-made garments sector so it's like they're finally getting some love 
and let's not forget, india has been pretty harsh on bangladesh with their tariffs 
so this new deal gives them more options to compete.
but hey, at least they're focusing on trade deals instead of politics 
and lifting restrictions on remanufactured goods 
because who doesn't love a good second chance? 
Now they can compete w/ India on equal terms 
" 
The fact that they're committing to uphold internationally recognized labor rights is a good start, but we need more details on what that actually means in practice. 
this is like, the best news ever!!! Bangladesh is literally going to DOMINATE the global garment industry now that they have these super low tariffs 
! I mean, 19% is still a lot lower than what other countries are offering, so it's all about how smartly they negotiate from here on out 
. And can we talk about how awesome this is for those 4 million workers? They're going to be making some serious cash now 
!
But on the other hand, are we just playing into the hands of big corporations and exploiting our workers even more? 
Bangladesh's textile industry employs almost 4 million people... that's a lot of lives at stake 
just saw that Bangladesh and US finalized a trade agreement that's gonna be a game changer for their ready-made garments sector 
! 37% tariffs down to 19%, that's huge 
. Plus, they'll get to import more US goods without major restrictions 
!