Bangladesh Secures Landmark Trade Deal with US

Dhaka, Aug 1 (PTI) Interim government's Chief Adviser Muhammad Yunus Friday congratulated his trade negotiators on securing a "landmark" deal with the US, which reduced its tariff rate on goods from Bangladesh to 20 per cent, a significant reduction from the previous 35 per cent.

"We proudly congratulate the Bangladesh tariff negotiators on securing a landmark trade deal with the United States, a decisive diplomatic victory," Yunus said.

In a statement, he said by reducing the tariff to 20 per cent, “17 points lower than anticipated”, Bangladeshi negotiators demonstrated “remarkable strategic skill and unwavering commitment to safeguarding and advancing Bangladesh's economic interests”.

The development came after a series of talks over the past month.


Yunus said his negotiators worked “relentlessly since February and navigated successfully through a complex negotiating process involving tariff, non-tariff and national security matters”.

“The agreement they negotiated preserves our comparative advantage, enhances our access to the world's largest consumer market and safeguards our core national interests,” Yunus said.

Bangladesh secured a 20 per cent tariff rate, comparable to its key apparel-sector competitors such as Sri Lanka, Vietnam, Pakistan, and Indonesia, which received rates between 19 per cent and 20 per cent. As a result, Bangladesh's relative competitiveness in apparel exports remains unaffected, Yunus said.

He added, by contrast, India received a 25 per cent tariff after “failing to reach a comprehensive agreement with the US".

"We negotiated carefully to ensure that our commitments aligned with our national interests and capacity," said Yunus's security adviser Khalilur Rahman, who emerged as the lead negotiator in the talks.