The United States and Bangladesh have agreed to finalize an Agreement on Reciprocal Trade that expands bilateral market access and strengthens economic and supply chain cooperation.
The Agreement builds on the 2013 Trade and Investment Cooperation Forum Agreement (TICFA) and introduces new commitments across tariffs, regulatory alignment, labor standards, environmental protection and digital trade.
Bangladesh will provide significant preferential access for U.S. industrial and agricultural goods, including chemicals, machinery, motor vehicles and parts, ICT equipment, energy products and a range of agricultural items such as soy, dairy, beef, poultry, tree nuts and fruit.
The U.S. will reduce the reciprocal tariff rate on Bangladeshi-origin goods to 19% and designate certain products to receive a zero percent (0%) reciprocal tariff rate under provisions linked to Executive Orders issued in 2025.
A new mechanism will allow a specified volume of Bangladeshi textile and apparel exports to enter the U.S. market at a zero reciprocal tariff rate. The volume will be tied to U.S. exports of textile inputs such as cotton and man-made fibers, reflecting integrated supply chain considerations.
Bangladesh has committed to reducing non-tariff barriers, including recognizing U.S. vehicle safety and emissions standards, accepting U.S. FDA certifications for medical devices and pharmaceuticals, and removing restrictions on remanufactured goods.
Digital trade provisions include permitting cross-border data flows, supporting a permanent WTO moratorium on customs duties on electronic transmissions, and digitalizing customs procedures. Bangladesh will also adopt science- and risk-based approaches for agricultural imports and remove barriers in its insurance market.
The Agreement includes commitments on labor rights, environmental protection, anti-corruption enforcement, intellectual property protection and addressing distortions linked to subsidies and state-owned enterprises.
Both countries emphasized cooperation on economic and national security alignment to enhance supply chain resilience and innovation. Areas of collaboration include combating duty evasion, coordinating export controls and sharing information on inbound investment.
The Agreement notes major commercial engagements, including aircraft procurement, planned purchases of approximately $3.5 billion in U.S. agricultural goods, and energy product purchases estimated at $15 billion over 15 years.
The U.S. will consider supporting investment financing in Bangladesh’s critical sectors through institutions such as EXIM Bank and the U.S. International Development Finance Corporation, subject to eligibility and applicable law.
Both governments stated they will promptly finalize the Agreement and complete necessary domestic procedures before it enters into force.
Asia Pacific Newslog 