US, Bangladesh agree on reciprocal trade

The United States and Bangladesh have agreed on reciprocal Trade agreement to strengthen our bilateral economic relationship. The US will reduce the reciprocal tariff rate on originating goods of Bangladesh to 19 per cent from 37 per cent imposed in April last year and will also identify products to reduce it to zero per cent reciprocal tariff rate.

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The agreement will provide U.S. and Bangladeshi exporters unprecedented access to each other’s respective markets.  The Agreement will build upon our longstanding economic relationship, including the U.S.-Bangladesh Trade and Investment Cooperation Forum Agreement (TICFA), signed in 2013, a joint statement said.

Key terms of the Agreement will include:

  • Bangladesh commits to provide significant preferential market access for U.S. industrial and agricultural goods, including: chemicals; medical devices; machinery and motor vehicles and parts; information and communicational technology (ICT) equipment; energy products; soy products; dairy products; beef; poultry; and tree nuts and fruit.
  • The United States will reduce the reciprocal tariff rate, as initially set forth in Executive Order 14257 of April 2, 2025, to 19 per cent on originating goods of Bangladesh, and will identify products from the list set out in Annex III (Potential Tariff Adjustments for Aligned Partners) to Executive Order 14346 of September 5, 2025 (Modifying the Scope of Reciprocal Tariffs and Establishing Procedures for Implementing Trade and Security Agreements) to receive a zero per cent reciprocal tariff rate.
  • The United States commits to establish a mechanism that will allow for certain textile and apparel goods from Bangladesh to receive a zero reciprocal tariff rate.  This mechanism will provide that a to-be-specified volume of apparel and textile imports from Bangladesh can enter the United States at this reduced tariff rate, but this volume shall be determined in relation to the quantity of exports of textiles, e.g. U.S. produced cotton and man-made fiber textile inputs, from the United States.
  • The United States and Bangladesh commit to address Bangladesh’s non-tariff barriers that affect bilateral trade and investment in priority areas, including by Bangladesh: accepting vehicles built to U.S. Federal motor vehicle safety and emissions standards; accepting U.S. Food and Drug Administration certificates and prior marketing authorizations for medical devices and pharmaceuticals; and removing any import restrictions or licensing requirement on U.S. remanufactured goods or their parts.
  • Bangladesh commits to permit the free transfer of data across trusted borders; support the adoption of a permanent moratorium on customs duties on electronic transmissions at the World Trade Organization; follow science and risk-based processes to allow the import of safe U.S. food and agricultural goods; remove barriers in the insurance market; digitalize its customs procedures; and adopt and implement good regulatory practices.

Read more here: https://www.whitehouse.gov/briefings-statements/2026/02/joint-statement-on-framework-for-united-states-bangladesh-agreement-on-reciprocal-trade/

https://ustr.gov/about/policy-offices/press-office/press-releases/2026/february/ambassador-greer-signs-united-states-bangladesh-agreement-reciprocal-trade

https://www.whitehouse.gov/wp-content/uploads/2025/04/Annex-I.pdf

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