The United States has reduced the reciprocal tariff on Bangladeshi exports to 19 per cent following the signing of a bilateral trade agreement that also provides zero reciprocal duty for certain Bangladeshi garment exports made with US-origin cotton and synthetic fibres.

Commerce Secretary Mahbubur Rahman said the Agreement on Reciprocal Tariff between Bangladesh and the United States was signed in Washington at around 10:00pm Bangladesh time on Monday.

The accord was signed on behalf of Bangladesh by Commerce Adviser Sheikh Bashir Uddin and National Security Adviser Khalilur Rahman, while US Trade Representative (USTR) Ambassador Jamieson Greer represented the United States.

Negotiations on the agreement began in April last year and continued for more than nine months, officials said.

Under the deal, the US will further lower the reciprocal tariff to 19 per cent.

The rate was initially set at 37 per cent and later reduced to 20 per cent in August 2025.

In addition, Washington has committed to establishing a mechanism that will allow certain textile and apparel products from Bangladesh, produced using US-manufactured cotton and man-made fibres, to enter the US market at zero reciprocal tariff.

Ambassador Greer praised Chief Adviser Muhammad Yunus for providing overarching leadership during the negotiations and commended the Bangladeshi negotiating team for its incredible efforts.

He said the agreement would align Bangladesh more closely with US trade policy.

Following the signing, Commerce Adviser Sheikh Bashir Uddin described the agreement as marking a historic new phase in bilateral economic and trade relations.

‘It will provide substantially enhanced access for Bangladesh and the United States to each other’s respective markets,’ he said.

National Security Adviser Khalilur Rahman, who served as Bangladesh’s chief negotiator, said the tariff reduction would offer Bangladeshi exporters a competitive edge.

‘The reduction of the reciprocal tariff will grant further advantage to our exporters, while zero reciprocal tariff on specific textile and apparel exports from Bangladesh using US inputs will give substantial added impetus to our garments sector,’ he said.

Bangladesh’s readymade garment (RMG) industry is the country’s largest export earner, with the United States one of its key markets.

The agreement received approval from the Council of Advisers on Monday and will come into force once formal notifications are issued by both sides.