The US reduces tariffs on Bangladesh to 19%.

In an exciting development, interim government chief Muhammad Yunus announced that Bangladesh has successfully secured a reduced 19 per cent tariff under a new trade agreement with the United States. This agreement will exempt certain textiles and garments manufactured with US materials from tariffs, providing a boost to the country's export industry. In a post on Monday, Yunus revealed that after nine months of negotiations, Washington has committed to establishing a mechanism that will allow certain textile and apparel goods from Bangladesh, made with US-produced cotton and man-made fibers, to receive zero reciprocal tariff in the US market. This is great news for the country, especially given Yunus' pro-US stance. According to Commerce Secretary Mahbubur Rahman, this agreement will benefit Bangladesh's key export-earning ready-made garments, which are made from cotton and synthetic fibers imported from the US. They will now enjoy zero reciprocal duty under the deal. The agreement was officially signed in Washington by Commerce Adviser Sheikh Bashir Uddin and US Trade Representative Jamieson Greer. However, the US Treasury Department or any office of the Trump administration has not yet commented on this development. This new trade agreement also includes provisions for importing US wheat, soybean, and LNG, as well as refraining from imposing tariffs on e-commerce, complying with US-mandated intellectual property rights standards, and supporting US proposals for reforming the World Trade Organization. It is worth noting that Bangladesh recently agreed to purchase 25 aircraft from US aerospace giant Boeing, with an estimated cost of Tk 30,000-35,000 crore, as part of broader efforts to ease the US tariffs. This deal will also have a positive impact on the country's export market, as the US remains Bangladesh's largest export market according to the Export Promotion Bureau. This success comes after Bangladesh secured a reduction in US tariffs on its exports to 20 per cent last year, down from the initially proposed 37 per cent. Business analysts have hailed this new trade agreement as a much-needed relief for Bangladesh's apparel exporters, as the Ready-Made Garment (RMG) sector is a crucial contributor to the country's economy. The US-India trade deal, which was recently concluded and saw tariffs lowered to 18 per cent from 50 per cent, may have influenced the US's decision to cut the tariff for Bangladesh. The commerce secretary believes that this could be due to geopolitical considerations. It is worth noting that Bangladesh's closest competitor, Vietnam, received a 20 per cent reciprocal tariff, while Pakistan, Cambodia, and Indonesia have also been subjected to a 19 per cent tariff. This announcement comes at an important time for Bangladesh, as the country heads for its general election on February 12. The election will bring an end to the 18-month interim regime led by Yunus, which came into power after the fall of the Awami League government following a violent student-led street campaign known as the July Uprising. This exciting development has been widely covered by the media, with the Orissa POST, Odisha's No.1 English Daily, reporting on it. It is another step forward for Bangladesh's economy and a testament to the hard work and dedication of the country's policymakers. The future looks bright for Bangladesh's trade relations with the US, and this new agreement is sure to have a positive impact on the country's growth and development.