United News of Bangladesh

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has welcomed a significant new trade agreement between Bangladesh and the United States, signed today (Tuesday) following nine months of intensive bilateral discussions. The agreement introduces a strategic reduction in reciprocal tariffs and provides a major boost for garments made from USA raw materials. In its initial response, BGMEA expressed sincere gratitude to the USA Government and the Office of the United States Trade Representative (USTR), as well as to Chief Adviser Dr. Muhammad Yunus and the interim government’s leadership for their roles in achieving this milestone. BGMEA secures special healthcare benefits for members Reciprocal Tariff Reduction: The standard tariff on Bangladeshi products in the U.S. market will be reduced from 20 percent to 19 percent. Zero-Tariff Provision: Notably, garments manufactured in Bangladesh using cotton and man-made fibers imported from the United States will be exempt from reciprocal tariffs. Market Expansion: BGMEA believes these provisions will significantly enhance Bangladesh’s competitive edge and access to the USA market. To maximize these benefits, BGMEA emphasized the need for local spinners to ensure competitive yarn pricing, particularly since USA cotton is of superior quality but comes at a higher cost. The association also noted that ensuring the traceability and proper valuation of USA origin raw materials will be critical for exporters. BGMEA Instructs Factories Not to Respond to RSC Letters on Non-OSH Complaints