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Commerce Advisor Sheikh Bashir Uddin has said Bangladesh will receive duty free access for 85 to 86 per cent of its exports under the reciprocal trade agreement with the United States.
He made the remarks on Tuesday afternoon at a press conference at the Secretariat to brief the media on the reciprocal trade agreement, also known as the ART, with the United States.
“Readymade garment products account for 86 per cent of our total exports. If we use US cotton in these garments, then the garments will have access to the US market at zero supplementary duty,” he said.
“Simply put, 85 or 86 per cent of our exports will be duty free, while the remaining 14 to 15 per cent of exports will be subject to a supplementary duty of 19 per cent,” Bashir added.
He assured that Bangladesh can withdraw from the trade deal through an “appropriate notice”.
“We were also mindful of the possibility that a future government may feel that, for some reason, this agreement is not suitable for them. That is why we have incorporated this (exit clause) into the agreement. This, in broad terms, is our achievement,” he added.
US President Donald Trump, after assuming the office for a second term, announced on Apr 2, 2025, the imposition of higher tariffs on more than a hundred countries. An additional 37 per cent tariff was announced on imports from Bangladesh.
Rounds of negotiations brought the rate down to 20 per cent, which came into effect on Aug 1. Bangladeshi products were already subject to a 15 per cent tariff. Together with the new tariff, the total tariff rate rose to 35 per cent on average.
The agreement between the two countries was signed on Monday, bringing an end to negotiations that lasted for about nine months.
Under the new agreement, Bangladeshi products exported to the US market will now be subject to a reciprocal duty of 19 per cent, bringing the total tariff rate down from the previous 35-34 per cent.
The commerce advisor noted that Bangladesh is one of the world’s largest cotton importers, with 98 per cent of its cotton demand met through imports. He says US cotton imports present an opportunity to help reduce the trade deficit.
The advisor also shared plans to import several products from the US, including agriculture and energy products as well as traditional metal scrap, to help reduce the trade deficit.
“The agreement we signed includes a tariff facility called the ‘Potential Tariff Adjustment for Partner Countries.’ It will come into effect from the day the agreement is implemented. Under this, they have given duty-free benefits on 2,500 items,” said Commerce Secretary Mahbubur Rahman.