Washington, February 10 – In a significant boost to trans-Pacific commerce, the United States and Bangladesh have finalized a comprehensive bilateral trade agreement. Signed amid rising global economic tensions, the pact sets clear tariffs on imports and exports, while establishing rules for market access, labor standards, and digital trade.
The ceremony in the nation’s capital saw U.S. Trade Representative Jamison Greer and Bangladesh’s Advisor on Commerce, Textiles, Jute, Civil Aviation, and Tourism, Sheikh Bashir Uddin, affix their signatures. This marks the first such reciprocal trade deal the U.S. has struck with a South Asian nation.
‘Under President Trump’s leadership, the United States is pursuing a trade policy that delivers real results for American workers and businesses,’ Greer declared. He hailed the agreement as a vital step toward opening markets, dismantling trade barriers, and creating fresh opportunities for U.S. exporters.
Key provisions grant Bangladesh preferential access to U.S. industrial and agricultural goods, including chemicals, machinery, medical devices, energy products, soy, dairy, poultry, beef, tree nuts, and fruits. In return, the U.S. will apply tariffs on Bangladeshi imports capped at 19% for most items, with exceptions for select products.
Bangladesh commits to reducing non-tariff barriers, recognizing U.S. standards for vehicles, medical equipment, and pharmaceuticals, and accepting American safety protocols for agricultural goods. Labor rights take center stage, with pledges to uphold international standards, enforce labor laws rigorously, and ban imports of forced-labor goods.
Export processing zones will see improved labor practices, and a dedicated chapter addresses digital trade. The deal also links commerce to economic and national security cooperation, including export controls, sanctions enforcement, and supply chain security. Bangladesh agrees to limit purchases of sensitive technology and defense items from nations deemed security risks by the U.S.
Accompanying documents outline Bangladesh’s intent to ramp up imports from America, featuring wheat, soybeans, cotton, long-term liquefied natural gas contracts, civilian aircraft, and military equipment. The agreement activates post-legal ratification by both sides, effective 60 days later, with a 60-day notice clause for termination.
This pact promises to reshape trade dynamics in South Asia, fostering mutual growth while safeguarding strategic interests. As both nations navigate implementation, stakeholders watch closely for its ripple effects on regional economies.