The US has reduce reciprocal tariffs on Bangladeshi imports to 19 per cent underneath a brand new bilateral commerce settlement, providing duty-free entry to chose textile and attire items made with US-produced supplies, Bangladesh interim chief adviser Muhammad Yunus introduced on Monday.
“Washington has dedicated to making a pathway for chosen Bangladeshi clothes made with US supplies to obtain zero tariff entry,” Yunus wrote on X.
The present tariff reduction follows a collection of negotiations with Washington over 9 months. The US, initially, had proposed tariffs of as much as 37 per cent on Bangladeshi exports in April. After intensive talks, Dhaka secured a discount in August final 12 months, bringing the speed down to twenty per cent.
Yunus described the settlement as a serious step in the direction of defending jobs and strengthening Bangladesh’s place within the international textile provide chain.
In response to an official assertion, the settlement was signed on the Bangladesh facet by Commerce Adviser Sheikh Bashir Uddin and Nationwide Safety Adviser Khalilur Rahman, and on the US facet by Ambassador Jamieson Greer, the US Commerce Consultant.
Greer praised Yunus and the negotiating group for his or her efforts in concluding the settlement.
“This settlement will strengthen Bangladesh’s place in US commerce coverage,” he stated, as quoted within the assertion.
The White Home confirmed that each international locations additionally dedicated to handle non-tariff limitations in Bangladesh.
CRUCIAL RELIEF FOR GARMENT SECTOR
The readymade clothes sector is the spine of Bangladesh’s economic system, accounting for greater than 80 per cent of whole export earnings. It employs round 4 million employees, most of them girls from rural and low-income backgrounds, and contributes about 10 per cent to gross home product.
Trade leaders stated the decrease tariff price might assist Bangladeshi producers keep aggressive within the US market, which stays one in every of their largest export locations.
Many factories have struggled in recent times resulting from rising manufacturing prices, larger vitality costs, forex volatility and more durable compliance necessities imposed by worldwide consumers.
Earlier this month, US President Donald Trump introduced a commerce cope with India that lowered tariffs to 18 per cent from 50 per cent.
ELECTIONS AMID RISING TENSIONS
The commerce settlement comes at a fragile second. Bangladesh goes to the polls on Thursday after being underneath an interim administration since August 2024, when former prime minister Sheikh Hasina fled to India, the place she stays. Recent violence erupted forward of the elections, with greater than 40 individuals, together with girls, injured in clashes between native social gathering employees late on Wednesday night time.
The interim authorities has sought to show financial stability and credibility forward of the election, with commerce coverage taking part in a central function.
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With inputs from companies
