Bangladesh is set to formally sign a reciprocal tariff agreement with the United States today in Washington, a move aimed at reducing bilateral trade imbalances and ensuring continued market access for Bangladeshi exports, particularly readymade garments.
The signing ceremony will be held in a hybrid format. Commerce Adviser Sk. Bashir Uddin and Commerce Secretary Mahbubur Rahman will participate virtually from Dhaka, while a Bangladeshi delegation led by Khadija Naznin, additional secretary and head of the WTO wing at the Ministry of Commerce, will attend the event in person in the US capital. The agreement will be exchanged with the signature of US Trade Representative (USTR) Jamieson Greer.
Speaking yesterday, the commerce adviser said the details of the agreement would be disclosed after the signing ceremony. He confirmed that the document had already been signed by him in Dhaka and sent to Washington for completion of the process.
The agreement comes against the backdrop of the US decision to impose reciprocal tariffs on imports from several countries, including Bangladesh, as part of its efforts to narrow persistent trade deficits. Since August last year, Bangladeshi exports to the US have been subject to a 20% reciprocal tariff, following negotiations that reduced an initially proposed 37% duty.
The United States is Bangladesh’s single largest export destination, with annual exports amounting to around $8 billion, while US exports to Bangladesh stand at about $2 billion, creating a substantial trade gap. Officials said the new agreement is intended to address this imbalance through a combination of tariff adjustments and increased imports of US-origin goods.
Under the arrangement, Bangladesh has committed to raising imports from the US, including wheat, edible oil, fuel and cotton. In addition, the government has decided to procure 25 aircraft from US-based manufacturer Boeing as part of broader trade-balancing measures.
At a press briefing at the Secretariat yesterday, Commerce Adviser Bashir said the decision to purchase Boeing aircraft was taken to safeguard the continuity of Bangladeshi exports to the US market. The aircraft deal is estimated to cost between Tk 30,000 crore and Tk 35,000 crore, with payments spread over a 20-year period. He noted that while the US had initially proposed the purchase of 47 aircraft, Bangladesh opted to proceed with 25 at this stage.
The adviser said the interim administration aimed to finalize the agreement to reduce uncertainty and ease pressure on the next elected government. He added that negotiations with the US are ongoing to further lower tariffs, particularly on Bangladesh’s main export item—readymade garments—with the long-term goal of achieving zero-duty access.
Referring to earlier stages of the negotiations, Bashir said Bangladesh was the only country whose draft agreement details had been disclosed publicly, a development he believes complicated discussions. Had the details remained confidential, he suggested, Bangladesh might have been able to secure deeper tariff concessions.
Officials reiterated that the full scope, terms and conditions of the reciprocal tariff agreement would be made public once the signing process is completed.
