US cuts tariffs on selected Bangladeshi apparel

Bangladesh has secured tariff exemptions on certain clothing and textile products made with US-produced materials under a new bilateral agreement announced on Monday. 

The deal also includes a reduction in US tariffs on Bangladeshi goods from 20 percent to 19 percent, in exchange for Bangladesh expanding market access for a broader range of American products.

According to a joint statement, the agreement is expected to strengthen economic ties between the two countries and provide what both sides described as unprecedented access to each other’s markets. The United States will identify specific apparel and textile items from Bangladesh that will qualify for duty-free entry, particularly those produced using American cotton and man-made fibres. The volume of eligible products will depend on the amount of textiles exported from the US to Bangladesh.

The apparel sector remains central to Bangladesh’s economy, accounting for more than 80 percent of the country’s export earnings and employing about four million workers. Bangladesh is currently the world’s second-largest clothing exporter after China.

The agreement follows prolonged negotiations between Dhaka and Washington after sweeping tariffs were imposed by US President Donald Trump on global trading partners in April last year.

In return, Bangladesh has agreed to offer significant preferential access to American agricultural and industrial goods. These include chemicals, medical devices, automotive parts, soy-based products and meat, as part of efforts to deepen bilateral trade and reduce trade imbalances.