Bangladesh, to cap reciprocal tariff on it at 19 per cent and to reduce it to zero for the apparel made from US raw materials, has undertaken significant commitments under the Reciprocal Trade Agreement (ART) signed with the United States on Monday.
The commitments cover facilitating trade, enhancing market access, and strengthening intellectual property, labour standards, and liberal digital trade.
Bangladesh has committed to applying customs duties on US-origin goods in accordance with the agreed declining tariff schedule.
Additionally, Bangladesh must refrain from imposing quotas on US goods unless mutually agreed.
According to a United States Trade Representative (USTR) uploaded document, Bangladesh has pledged to uphold internationally recognised labour standards, guaranteeing freedom of association and collective bargaining.
More importantly, the agreement also compels a ban on importing goods mined or produced through forced or compulsory labour, alongside the removal of restrictions on strikes and improvements in union registration, especially in export processing zones.
In terms of intellectual property rights (IPR), Bangladesh has committed to strengthening protection and enforcement mechanisms. It includes robust systems to combat the infringement and misappropriation of intellectual property, particularly in the digital space.
The agreement mandates civil and criminal remedies for IPR violations, ensuring stronger protection for US firms operating in Bangladesh.
The agreement also covers digital trade by prohibiting Bangladesh from imposing discriminatory digital services taxes on US companies.
Bangladesh is required to facilitate free data transfer for business purposes and cooperate with the US on cybersecurity.
Additionally, Bangladesh must not impose customs duties on electronic transmissions, including software, videos, and other online services.
Furthermore, Bangladesh is required to support the permanent moratorium on customs duties for electronic transmissions at the World Trade Organization (WTO).
Bangladesh has also agreed to provide non-discriminatory or preferential market access for US agricultural products.
The agreement stipulates that Bangladesh must align its sanitary and phytosanitary (SPS) measures with international standards, reducing barriers to US agricultural exports.
In the realm of defence and aviation, Bangladesh has committed to facilitating increased purchases of US military equipment and civilian aircraft, including aircraft, parts, and services for Biman Bangladesh Airlines.
This move is aimed at strengthening Bangladesh’s procurement of US military and aviation products.
The agreement also includes a provision for Bangladesh to facilitate the importation of US agricultural biotechnology products without additional pre-market review within 24 months of the agreement’s entry into force.
Bangladesh has pledged to import $3.5 billion worth of agricultural products a year, alongside $15 billion in energy products over the next 15 years, according to a White House statement.
Trade facilitation measures under the agreement include the adoption of paperless trade systems by 2030 and the streamlining of customs procedures to ensure quicker processing of goods.
Bangladesh must also enable pre-arrival processing and digitalised systems to facilitate the movement of US goods across its borders.
On environmental matters, Bangladesh has agreed to take actions to combat illegal logging and overfishing and to cooperate with the US to prevent the trade in illegally harvested forest products.
In public health, Bangladesh has committed to recognising US FDA approvals for medical devices and pharmaceuticals as sufficient evidence for market authorisation.
The agreement will take effect 60 days after both parties exchange written notifications certifying the completion of their applicable legal procedures, according to the USTR document,
Commerce Adviser Sk Bashir Uddin on Tuesday said in a press conference that the agreement will also help attract foreign investments, alongside boosting trade.
