US and Bangladesh set trade deal with tariffs at 19 percent

"Muhammad Yunus, the chief adviser heading Bangladesh's interim government, said Washington had committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using US-produced cotton and man-made fibre to receive zero reciprocal tariff in [the] US market. The White House said Bangladesh had agreed to provide significant preferential market access for US industrial and agricultural goods, including chemicals, medical devices, machinery, motor vehicles and parts, soya products and dairy goods, beef, poultry, tree nuts and fruit."

"Bangladesh will also ease non-tariff barriers by accepting US vehicle safety and emissions standards, recognising US Food and Drug Administration certifications, and removing import restrictions on remanufactured goods, the White House added. The nations also noted recent and upcoming commercial deals including aircraft procurement, around $3.5bn in purchases of US agricultural products, and an estimated $15bn in US energy product purchases over 15 years."

"Bangladesh also pledged to uphold internationally recognised labour rights and strengthen environmental protections. The South Asian nation in August had secured a reduction in US tariffs on its exports to 20 percent, down from 37 percent initially proposed by Washington, offering much-needed relief to the nation's apparel exporters. The ready-made garments sector is the backbone of Bangladesh's economy, accounting for more than 80 percent of total export earnings, employing"

Bangladesh secured a reduced 19 percent tariff rate with the United States and obtained exemptions for some textiles and garments manufactured with US material. Washington committed to a mechanism allowing certain Bangladeshi textile and apparel goods made with US-produced cotton and man-made fibre to receive zero reciprocal tariff in the US market. Bangladesh agreed to provide preferential market access for US industrial and agricultural goods and to ease non-tariff barriers by accepting US vehicle and FDA standards and removing remanufactured goods restrictions. The agreement includes commercial deals worth billions and pledges on labour and environmental protections.

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