Bangladesh Secures Reduced US Tariff: A Boon for Textile Exports
Bangladesh has negotiated a 19% tariff under a US trade agreement for textiles made with US materials. This deal offers significant relief to Bangladesh's apparel sector which comprises 80% of its exports. The agreement, signed after nine months, involves various commitments including zero reciprocal duty for some goods.
- Country:
- Bangladesh
Bangladesh has successfully negotiated a reduced 19 per cent tariff under a trade agreement with the United States, which is set to greatly benefit the country's textile industry.
Interim government chief Muhammad Yunus announced that the agreement allows certain textiles and garments manufactured with US materials to enjoy zero reciprocal tariffs. This signifies a major breakthrough for Bangladesh's economy as its ready-made garments (RMG) sector accounts for over 80 per cent of export income.
The deal follows nine months of discussions and includes importing US goods such as wheat and soybeans, while also complying with US intellectual property standards. The arrangement was finalized in Washington, marking a milestone in Bangladesh-US trade relationships.
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