Bangladesh and the United States on Monday signed an agreement whereby the US committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using American cotton and man-made fibres to enjoy zero tariff entry into the lucrative US market.
At the same time, the agreement reduces the 'Reciprocal Tariff' rate for all other goods between the two nations to 19%. It was originally set at 37 percent and later reduced to 20 percent in August last year.
On the Bangladesh side, the signatories were Commerce Adviser Sheikh Bashir Uddin and National Security Adviser Khalilur Rahman, and on US side Ambassador Jamieson Greer, US Trade Representative. Negotiations on the agreement spanned over nine months since April last year.
"The agreement marks a historically new level in our bilateral economic and trade relations. It will provide substantially enhanced access of Bangladesh and the US to each other's respective markets," said Commerce Adviser Sheikh Bashir Uddin, who led the Bangladesh side.
"The reduction of reciprocal tariff from 20 percent to 19 percent will grant further advantage to our exporters, while zero reciprocal tariff on specific textile and apparel exports from Bangladesh will give substantially added impetus to our garments sector," said NSA Rahman, who was the lead negotiator of Bangladesh.
The agreement was approved by the Council of Advisers today (Monday) and will be operational once notifications are issued by the two sides.
Present during the signing were Commerce Secretary of Bangladesh Mahbubur Rahman and Assistant US trade Representative Brendan Lynch.