Bangladesh, US to sign trade deal today, reciprocal tariff likely to cut

Bangladesh is set to sign a much-anticipated reciprocal tariff–related trade agreement with the United States today, just two days ahead of the national election.

Under the agreement, garments manufactured in Bangladesh using US cotton may gain duty-free access to the American market. The deal may also lead to a reduction in the existing 20 percent reciprocal tariff currently imposed on Bangladesh.

Sources at the Ministry of Commerce said the agreement will be signed online at 10:00am Washington time (11:00pm Bangladesh time).

Commerce Adviser Sheikh Bashiruddin has already signed the document in Dhaka, while US Trade Representative Jamieson Greer will sign on behalf of the United States in Washington.

A five-member Bangladeshi delegation in Washington is led by Additional Secretary and WTO Wing Chief Khadiza Naznin. Other members include Joint Secretaries Firoz Uddin Ahmed and Mustafizur Rahman, Senior Assistant Secretary Sheikh Shamsul Arefin, and National Board of Revenue Commissioner Raich Uddin Khan.

Addressing a press briefing at the Secretariat on Sunday, the commerce adviser said the additional 20 percent tariff imposed during the Trump administration could be reduced further, though the exact rate was not disclosed to protect negotiation interests. “Our objective, particularly for the readymade garment sector, is to bring the tariff down to zero,” he said.

Responding to concerns over signing such a major agreement ahead of the election, Sheikh Bashiruddin said the move was necessary to avert risks to exports and employment. Uncertainty in a key export market could threaten the livelihoods of millions, he noted, adding that competitor countries were strengthening trade ties with the US through large purchase commitments.

The adviser also said the early disclosure of negotiation documents had weakened Bangladesh’s bargaining position. “Had the documents not been leaked, the tariff might have been reduced to below 20 percent,” he said, adding that national interests were not compromised.

As part of the broader discussions, the issue of purchasing aircraft from Boeing was also raised. Sheikh Bashiruddin said this was not a new decision but part of the national flag carrier’s long-term plan to expand its fleet by 2035. The estimated cost is Tk30,000–35,000 crore, to be paid in instalments over the long term.

The Ministry of Commerce said the detailed terms of the agreement would be disclosed after mutual consent following the signing.