Following nine months of intensive discussions between Bangladesh and the United States, an important trade agreement was signed today. On behalf of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), we warmly welcome this agreement.
We, (BGMEA) extend our sincere thanks and gratitude to the Government of the United States, as well as to the Honorable Chief Adviser of the Interim Government, Dr. Muhammad Yunus; National Security Adviser Mr. Khalilur Rahman; Commerce Adviser Sheikh Bashir Uddin; and Commerce Secretary Mr. Mahbubur Rahman for their efforts in achieving this milestone. We also thank the U.S. Embassy and the Office of the United States Trade Representative (USTR) for their cooperation in facilitating the process.
Based on preliminary information available to BGMEA, the agreement reduces the reciprocal tariff imposed on Bangladeshi products in the U.S. market from 20 percent to 19 percent. Notably, garments produced using cotton and man-made fibers imported from the United States will not be subject to any reciprocal tariff. We believe this provision will further enhance Bangladesh’s access to the U.S. market. However, to effectively utilize this opportunity, it will be essential to ensure proper valuation and traceability of U.S.-origin raw materials used in production.
According to BGMEA, as U.S. cotton is of superior quality and relatively higher cost, significant export opportunities can be created if local spinners are able to ensure competitive yarn pricing. It is important to note that BGMEA has not yet been formally informed of the complete terms and conditions of the agreement. Upon receiving detailed documentation from the government, BGMEA will convene an urgent meeting with its members and engage in discussions with the U.S. Embassy in Dhaka and the USTR to determine the next course of action.
