BGMEA welcomes the Bangladesh–US reciprocal tariff agreement

The United States and Bangladesh signed a reciprocal tariff deal today, which was hailed by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), which said it was a good step for Bangladesh’s export-focused clothing industry.

After nine months of intense discussions between the two nations, the agreement was reached.

BGMEA thanked the U.S. government and the interim administration of Bangladesh for their contributions to finalizing the contract in a news release released here today.

BGMEA particularly thanked Chief Adviser Professor Dr Muhammad Yunus, National Security Adviser Khalilur Rahman, Commerce Adviser Sk. Bashir Uddin and Commerce Secretary Mahbubur Rahman for their leadership and support during the negotiation process. The organisation also acknowledged the cooperation of the US Embassy in Dhaka and the Office of the United States Trade Representative (USTR) in facilitating the agreement.

According to preliminary information received by BGMEA, the agreement has reduced the reciprocal tariff imposed on Bangladeshi products exported to the US market from 20 percent to 19 percent.

The association noted that garments manufactured in Bangladesh using cotton and man-made fibres imported from the United States will be exempt from such tariffs, which is expected to improve Bangladesh’s market access to the US.

BGMEA, however, emphasised that proper evaluation and traceability mechanisms must be ensured to fully benefit from the provision allowing the use of US-origin raw materials.

The association observed that while US cotton is of higher quality, it is also comparatively expensive. It added that if local spinning mills can ensure competitively priced yarn, the agreement could create substantial opportunities for export growth.

The BGMEA also stated that it has not yet officially received full details of the final terms and conditions of the agreement. Once the government provides the relevant documents, the association will convene an emergency meeting of its members and hold further discussions with the US Embassy in Dhaka and the USTR to determine the next course of action.