Bangladesh secures 19% tariff rate in the U.S Market

Noman Sabit: Bangladesh has secured a reduced 19% U.S. tariff under a trade agreement signed between the two countries on Monday that would exempt some textiles and garments manufactured with U.S. material, interim leader Muhammad Yunus said on X.

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) US market," wrote Yunus, who holds the post of chief advisor as head of the interim government of Bangladesh. Yunus said the negotiations on the agreement had spanned nine months since April last year.

The White House, Treasury Department and Office of the U.S. Trade Representative did not immediately respond to requests for comment.

The South Asian nation last August 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. The readymade garments sector is the backbone of Bangladesh's economy, accounting for more than 80% of total export earnings, employing about 4 million workers, and contributing about 10% to gross domestic product.

Earlier this month, U.S. President Donald Trump announced a trade deal with neighbouring India to lower tariffs to 18% from 50% in exchange for New Delhi halting Russian oil purchases and lowering trade barriers.

Bangladesh goes to the polls on Thursday to elect new leadership after being governed by an interim government since August 2024, when former Prime Minister Sheikh Hasina fled to India, where she remains. Source Reuters.

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BP/SM