Bangladesh on Monday signed a major trade agreement with the United States in Washington, with the reciprocal tariff inching down to 19 per cent from 20 per cent, confirmed the Ministry of Commerce.
Additionally, Bangladeshi apparel made from cotton and man-made fibre imported from the USA will face zero reciprocal tariffs, the ministry said after the deal was inked at 11:00 am Washington time and 10:00 pm Dhaka time.
The full details of the deal, titled ‘Agreement on Reciprocal Trade (ART)’, have not been disclosed due to a non-disclosure agreement.
The agreement was signed virtually on behalf of Bangladesh, as Commerce Adviser Sk Bashir Uddin and Commerce Secretary Mahbubur Rahman did not travel to Washington due to the forthcoming parliamentary election scheduled for Thursday.
Commerce Adviser Bashir signed on behalf of Bangladesh, while US Trade Representative Jamieson Greer signed for the US government, according to the Ministry of Commerce. A five-member delegation led by Khadija Nazneen, additional secretary of the Ministry of Commerce’s WTO Cell, represented Bangladesh in the US capital.
Commerce Adviser Bashir, in his press briefings on Sunday and Monday, said the agreement could result in a lower additional tariff than the existing 20 per cent currently applied to Bangladeshi products in the US market.
He said Bangladesh was expecting meaningful progress, particularly for its key export sector, ready-made garments.
Officials also said they hoped that Bangladeshi products manufactured using at least 70 per cent US raw materials would be exempt from reciprocal tariffs altogether. However, they stressed that the precise terms would only be made public once the agreement is ratified and both sides agree to disclosure.
At a press conference on Sunday, Bashir reiterated that negotiations had focused on securing the lowest possible tariff rates for Bangladeshi exports. “We have been negotiating for the lowest possible tariff rate for our primary export, ready-made garments, and we hope to achieve zero tariffs in the future,” he said.
He added that the agreement also addresses national security concerns and the export of unprocessed goods and assured that the process would be transparent once formalities are completed.
The deal follows prolonged negotiations over US tariffs on Bangladeshi goods. In 2025, tariffs were initially set at 37 per cent, before being reduced to 20 per cent by August that year. When combined with an average earlier tariff of 15 per cent, Bangladeshi exports currently face an overall tariff burden of around 35 per cent in the US market, still lower than that faced by exporters from India, China, Vietnam, and several other countries.
Bangladesh views the agreement as critical to consolidating its export presence in the US, its largest single-country market, valued at nearly Tk1,00,000 crore annually. A major component of the deal includes Bangladesh’s planned purchase of 25 Boeing aircraft, estimated to be worth between Tk30,000 crore and Tk35,000 crore, a move expected to boost the country’s aviation sector and improve bilateral connectivity.
Responding to questions about the timing of the agreement, signed just days before the national election, Bashir said the interim government wanted to ensure that the next elected administration would not be burdened with finalising such a complex and strategically important deal.
The agreement also comes as Bangladesh seeks to narrow its trade deficit with the US, which currently stands at around $8bn. Bangladesh exports roughly $6bn worth of goods to the US each year, while importing about $2bn, mainly wheat, edible oil, soybeans, and other agricultural products.
Officials say increased imports under the new deal, alongside tariff reductions, could help rebalance trade and deepen economic ties. Bashir is expected to brief the media further on Tuesday, reiterating that full disclosure of the agreement’s contents will follow once both sides consent.
