US, Bangladesh Ink Trade Deal With Zero Reciprocal Tariff on Select Items

The United States and Bangladesh on Monday signed the United States–Bangladesh Agreement on Reciprocal Trade, marking a significant step toward strengthening bilateral economic and trade relations, according to a statement from the Office of the US Trade Representative.

The agreement was signed in Washington DC by US Trade Representative Jamieson Greer and Sheikh Bashir Uddin, Bangladesh’s Adviser for Commerce, Textiles and Jute, and Civil Aviation and Tourism. Bangladesh Commerce Secretary Mahbubur Rahman and Assistant US Trade Representative Brendan Lynch were also present at the signing ceremony.

“Under President Trump’s leadership, the United States is pursuing a trade policy that delivers real results for American workers and businesses, strengthening our economic and security partnerships abroad,” Greer said.

First such deal in South Asia

Greer described the pact as the first reciprocal trade agreement in South Asia, calling it a meaningful move toward opening markets, addressing trade barriers and creating new opportunities for American exporters.

He also praised Bangladesh’s engagement during negotiations, saying the agreement reflected a more balanced and reciprocal trading relationship between the two countries.

Bangladesh’s Chief Adviser Muhammad Yunus said the deal represents a “historically new level” in bilateral economic ties, signalling deeper cooperation between Washington and Dhaka.

Tariff reduction and zero-duty access

Under the agreement, the United States will further reduce the reciprocal tariff rate to 19%, down from the original 37% and a revised 20% set in August last year.

A key highlight of the deal is the introduction of a zero reciprocal tariff mechanism for certain textile and apparel products from Bangladesh that use US-produced cotton and man-made fibres. These items will gain duty-free access to the US market.

“The reduction of reciprocal tariff will grant further advantage to our exporters, while zero reciprocal tariff on specific textile and apparel exports using US inputs will give substantial added impetus to our garments sector,” said Rahman, who served as Bangladesh’s chief negotiator.

Next steps

The agreement has been approved by Bangladesh’s Council of Advisers and will come into effect once both sides issue the required notifications. Officials on both sides indicated that the deal could serve as a foundation for deeper trade engagement in the future, particularly in textiles, manufacturing and market access.