Bangladesh and US Set to Sign Reciprocal Tariff Agreement Today

Bangladesh is scheduled to sign a reciprocal tariff agreement with the United States today in Washington. The deal is aimed at narrowing the trade gap between the two countries and ensuring continued access for Bangladeshi products in the US market.

Commerce Adviser Sk Bashir Uddin and Commerce Secretary Mahbubur Rahman will join the signing ceremony virtually from Dhaka. Meanwhile, a delegation led by Khadija Naznin, additional secretary and head of the WTO wing, will attend in person in Washington.

Officials will exchange the agreement with the US trade representative in Washington.

The commerce adviser confirmed that the full details of the agreement will be shared after the official signing. He has already signed the document in Dhaka.Officials have since sent it to Washington. US Trade Representative Jamieson Greer will formally exchange it after signing.

The agreement follows the US decision to impose reciprocal tariffs on goods from several countries, including Bangladesh, as part of efforts to reduce its trade deficit. Since August last year, Bangladeshi exports to the US have faced a 20 percent tariff under this policy.

Trade imbalance remains a central issue in negotiations,

Bangladesh exports roughly 8 billion dollars worth of goods to the United States each year. In contrast, US exports to Bangladesh stand at about 2 billion dollars annually, creating a significant trade imbalance.

Officials say the new agreement will include commitments from Bangladesh to increase imports from the US. Key products expected to see higher imports include wheat, edible oil, fuel, and cotton.

The Boeing aircraft purchase is part of a broader trade-balancing plan,

As part of the wider effort to balance trade, the government has also decided to purchase 25 aircraft from US manufacturer Boeing.

The commerce adviser spoke at a press conference at the Secretariat. He said the aircraft purchase aims to safeguard Bangladeshi exports to the American market.

The estimated cost of the aircraft deal ranges between Tk30,000 crore and Tk35,000 crore.The government expects to spread the payments over 20 years.

The adviser noted that the US had initially proposed the sale of 47 aircraft. However, Bangladesh has decided to proceed with 25 for now. He added that the interim administration is working to finalize the agreement in a way that reduces financial pressure on the next elected government.

Tariff negotiations continue with a focus on garment exports,

Tariff negotiations continue with a focus on garment exports, reflecting the broader climate of global tariff tensions shaping international trade. 

Further details of the reciprocal tariff deal, including its exact terms and conditions, will become public after the signing ceremony. The commerce adviser also mentioned ongoing talks to lower tariff rates. He said the US originally imposed a 37 percent tariff on Bangladeshi exports. Later, negotiators reduced it to 20 percent.

Officials are continuing discussions to secure zero tariffs on Bangladesh’s main export, readymade garments. He added that Bangladesh was the only country to publicly disclose its draft agreement earlier. This move complicated the negotiations and may have reduced the chances of securing deeper tariff cuts during rising global trade tensions.