The deal was signed on Monday by Bangladesh’s Commerce Adviser Sheikh Bashir Uddin and National Security Adviser Khalilur Rahman, alongside US Trade Representative Ambassador Jamieson Greer. Negotiations for the agreement had been underway for nine months, starting in April last year.
Commerce Adviser Sheikh Bashir Uddin called the deal “a historically new level in our bilateral economic and trade relations,” adding that it will give both nations substantially greater access to each other’s markets.
Under the agreement, the United States will lower its reciprocal tariff from the current 20 percent to 19 percent—a sharp cut from the original 37 percent. In addition, the US will create a special mechanism allowing certain Bangladeshi textile and apparel goods, produced with US cotton and man-made fiber, to enter the American market with zero reciprocal tariff.
National Security Adviser Khalilur Rahman, who led Bangladesh’s negotiating team, said the agreement would give exporters a fresh advantage and provide a significant boost to the country’s garment sector.
The Council of Advisers in Bangladesh approved the agreement on Monday. It will take effect once both countries issue formal notifications.
Also present at the signing were Bangladesh Commerce Secretary Mahbubur Rahman and Assistant US Trade Representative Brendan Lynch.
