Commerce Minister Khandakar Abdul Muktadir on Thursday said the trade agreement signed between Bangladesh and the United States has helped reduce the reciprocal tariff on Bangladeshi products and enabled the country to retain competitiveness in the US market.
He made the remarks in written reply to a starred question from ruling BNP lawmaker Md Salimuzzaman Molla (Gopalganj-1) in Parliament.
The lawmaker asked what benefits the Agreement on Reciprocal Trade (ART) signed with the US by the interim government will bring to the people of Bangladesh.
The minister said before April 2025, Bangladeshi products exported to the US were subject to an average Most Favoured Nation (MFN) tariff of around 15 percent.
In April 2025, the US imposed an additional 37 percent reciprocal tariff on Bangladeshi products on top of the existing MFN tariff, taking the overall average tariff burden to around 52 percent, he said.
Muktadir said following consultations with relevant stakeholders from the government and private sector, Bangladesh began negotiations with the US Trade Representative (USTR).
Following the negotiations, the US reduced the reciprocal tariff imposed on Bangladesh from 37 percent to 19 percent, he said.
The minister said the development led to the signing of the ART between Bangladesh and the US.
The agreement also includes a provision for a reduction in the reciprocal tariff on garments manufactured in Bangladesh using cotton imported from the US and subsequently exported to the US, he said.
Muktadir further said the US later conducted an investigation into forced labour under Section 301 of the Trade Act of 1974.
Considering whether countries had prohibited imports of products produced through forced labour or were effectively enforcing such prohibitions, the US imposed an additional tariff of 10 percent or 12.5 percent on products from around 60 countries, including Bangladesh, on top of their existing average MFN tariffs, he said.
However, as Bangladesh had signed the ART with the US, the additional tariff imposed on Bangladeshi products was set at 10 percent, the minister said.
“As a result, Bangladesh has been able to retain its export competitiveness in the US market compared with its competing countries,” he said.
Muktadir said the agreement and the subsequent tariff adjustments will help Bangladesh’s exporters maintain their position in the important US market.