Bangladesh and the United States have agreed on a bilateral trade pact that will reduce tariffs, ease non-tariff barriers and expand market access for exporters from both countries, according to a joint statement issued on Monday.
Under the agreement, Bangladesh will grant preferential market access to a wide range of US industrial and agricultural products, including chemicals, medical devices, machinery, motor vehicles and parts, information and communication technology equipment, energy products, soy and dairy items, beef, poultry, nuts and fruits.
In return, the United States has set a reciprocal tariff of 19% on Bangladeshi goods, the statement said.
The pact also includes provisions aimed at supporting Bangladesh’s key garment sector. The United States said it would not impose retaliatory tariffs on garments made in Bangladesh using cotton and synthetic fibres imported from the US. The eligible export volume will depend on the amount of US-origin yarn and synthetic fibre used.
The agreement builds on long-standing economic ties between the two countries and follows the US–Bangladesh Trade and Investment Cooperation Forum Agreement signed in 2013. The joint statement was published on the White House website.
Both sides agreed to reduce non-tariff barriers in priority sectors. Bangladesh will accept vehicles built to US federal motor vehicle safety and emissions standards and recognise certifications issued by the US Food and Drug Administration for medical devices and pharmaceuticals, including prior approvals.
Bangladesh also pledged to lift import bans or licensing requirements on US remanufactured goods and parts.
On digital trade, Bangladesh said it would allow cross-border data flows with trusted countries and support a permanent moratorium at the World Trade Organization on customs duties on electronic transmissions.
The country committed to science-based and risk-based procedures for importing US food and agricultural products, removing barriers in the insurance sector, digitising customs processes and adopting international regulatory best practices.
Bangladesh said it would strengthen labour rights protections, including enforcement of bans on goods produced with forced labour, ensure freedom of association and fully guarantee collective bargaining through legal reforms and stricter enforcement.
The pact also covers environmental protection, with Bangladesh committing to uphold high environmental standards and enforce existing laws.
On intellectual property, Bangladesh agreed to adopt and enforce stronger protection standards, including joining and implementing selected international treaties. It also pledged new rules on geographical indication products to maintain market access for US goods, particularly cheese and meat products using common names.
The two countries said they would enhance cooperation on economic and national security issues, including countering unfair trade practices, preventing customs evasion, coordinating export controls and sharing investment-related information to strengthen supply chains.
Bangladesh also committed to strengthening and enforcing anti-corruption laws.
The United States said it would consider, subject to legal and eligibility requirements, supporting investment in key Bangladeshi sectors through agencies including the Export-Import Bank of the United States and the US International Development Finance Corporation, working with private-sector partners.
The statement outlined Bangladesh’s plans to purchase about $35 billion worth of US agricultural goods, aircraft, wheat, soy, cotton and corn, and around $150 billion worth of US energy products over the next 15 years.
Both sides said the agreement would be finalised after completion of domestic procedures and required formalities.