Bangladesh will grant phased or immediate duty-free access to 7,132 United States tariff lines under the newly concluded Agreement on Reciprocal Trade, marking one of the most extensive market-opening commitments in its trade history.
According to a statement issued by the press wing of Chief Adviser Muhammad Yunus, 4,922 tariff lines will become duty-free from the date of signing, including 441 that already carry zero duty.
Another 1,538 tariff lines will see duties reduced to zero over five years, with 50 per cent of the reduction taking effect in the first year and the remaining 50 per cent phased out evenly over the next four years.
A further 672 tariff lines will be liberalised over ten years under the same front-loaded formula, while 326 lines are excluded from duty-free treatment, including 81 EMFN lines previously committed under the Bangladesh–Japan CEPA offer list.
The press release said the staged reduction structure distinguishes Bangladesh’s arrangement from other Reciprocal Tariff agreements signed by the United States, where such phased dismantling was not incorporated.
In return, Bangladesh secured zero-duty access in the US market for approximately 2,500 product lines, including pharmaceuticals, agricultural goods, plastics, wood and wood products.
Garments manufactured using US cotton or US-origin man-made fibre will qualify for zero Reciprocal Tariff treatment, removing the 19 per cent levy on eligible exports.
Ready-made garments account for around 80 per cent of Bangladesh’s exports to the US, making the textile-linked provision central to maintaining competitiveness in its largest export destination.
The government said products Bangladesh committed to purchase from the US are already sourced from alternative suppliers, meaning the shift involves changing origins rather than increasing overall import expenditure.
Rules of origin provisions do not specify foreign or domestic value-addition thresholds, potentially easing eligibility for tariff-free access.
The agreement covers goods, services, customs procedures, trade facilitation, sanitary and phytosanitary measures, technical barriers, investment, e-commerce, government procurement, labour, environment, competition policy, transparency and mutual cooperation, the press release said.
Officials said no new conditions were imposed beyond Bangladesh’s existing commitments under WTO TRIPS, International Labour Organization conventions and other international agreements.
The pact supports paperless trade, stronger intellectual property enforcement and a permanent moratorium on customs duties on electronic transmissions.
It recognises US FDA certification for medical devices and pharmaceuticals, accepts US SPS measures for food and agricultural imports, acknowledges FMVSS standards for vehicles and allows remanufactured goods imports without additional restrictions.
The agreement also includes commitments on fisheries subsidy discipline under WTO rules, anti-corruption enforcement, environmental protection, wildlife trade control and updating labour law in line with international standards.
On digital trade, the framework recognises CBPR, PRP and PDPO mechanisms and refers to cooperation on US economic and national security considerations, while encouraging expanded imports from the US, including Boeing aircraft, LNG, LPG, soybeans, wheat, cotton and defence equipment.
Unlike earlier US Reciprocal Tariff arrangements, the Bangladesh agreement incorporates an exit clause allowing termination under specified conditions.
The pact follows US Executive Order 14257 issued on 2 April 2025, which imposed Reciprocal Tariffs on nearly all trading partners, including Bangladesh.
Washington later revised Bangladesh’s tariff rate to 20 per cent on 30 August for countries that entered negotiations.
After nine months of discussions led by the Ministry of Commerce, supported by the National Board of Revenue and the Bangladesh Embassy in Washington, the final negotiated rate was reduced to 19 per cent.
The government said the agreement is expected to preserve Bangladesh’s export competitiveness in the US market while supporting trade expansion, investment growth and broader economic benefits.
