Zero Reciprocal Tariff For Bangladeshi Textiles Using US-produced Cotton, Fiber

DHAKA, Feb 10 (Bernama-Anadolu) -- Bangladeshi textile and apparel products made using US-produced cotton and man-made fiber will receive zero reciprocal tariffs in the US market, Bangladesh said Monday following the signing of a reciprocal trade agreement with Washington, Anadolu Ajansi reported.

The US has committed to establishing a mechanism to implement the measure, according to a statement from the office of interim leader Muhammad Yunus.

Under the agreement, the US will reduce reciprocal tariffs on Bangladeshi goods to 19 per cent, down from an initial rate of 37 per cent, which was later lowered to 20 per cent in August last year.

“The reduction in reciprocal tariffs will provide further advantages for our exporters, while zero tariffs on specific textile and apparel exports from Bangladesh using US inputs will give a significant boost to our garments sector,” said National Security Adviser Khalilur Rahman, who served as Bangladesh’s chief negotiator.

Negotiations on the agreement lasted more than nine months, beginning in April last year.

The agreement was signed by Bangladesh’s Commerce Adviser Sheikh Bashir Uddin and National Security Adviser Khalilur Rahman, while US Trade Representative Jamieson Greer signed on behalf of the United States.

Greer praised the Bangladeshi negotiating team for its “incredible efforts,” according to the Yunus office, and said the agreement would align Bangladesh with US trade policy.

Following the signing, Sheikh Bashir Uddin said the deal would “substantially enhance access for both Bangladesh and the United States to each other’s markets.”

The agreement was approved by the Council of Advisers on Monday and will take effect once formal notifications are issued by both sides.

-- BERNAMA-ANADOLU