US and Bangladesh agree trade deal

Along with a reduced tariff for most exports, clothes made in the South Asian country with American cotton will get a duty waiver

The US and Bangladesh have agreed a trade deal that allows reduced tariffs for most of the South Asian nation’s exports.

The deal provides for a tariff rate of 19% for exports to the US, 1% lower than the 20% set in August, according to reports.

Washington has committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using US-produced cotton and man-made fiber to receive a zero tariff in the US market, Muhammad Yunus, the chief adviser of the interim government, said in a post on X.

Neighboring India finalized a trade agreement with the US earlier this month, which provides an 18% rate, but without a similar concession for apparel exports.

Bangladesh, US sign reciprocal tariff agreement

WASHINGTON DC, February 9: The Agreement on Reciprocal Tariff between Bangladesh and the United States was signed on Monday. On the Bangladesh side, the signatories were Commerce Adviser Sheikh Bashir Uddin and National Security…

— Chief Adviser of the Government of Bangladesh (@ChiefAdviserGoB) February 9, 2026

Dhaka will allow preferential market access for US industrial and agricultural goods, and American farm and food products, according to a statement by the White House.

It will also slash tariffs to zero on poultry, pork, seafood, rice, corn, and cereal grains. Tariffs on some US products, including almonds, will be reduced to zero over five or ten years.

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Bangladesh Airlines will purchase 14 Boeing aircraft, while Dhaka will also buy an unspecified amount of US military equipment.

The deal, just four days ahead of national elections in Bangladesh, has drawn flak from several quarters, according to reports.

Bangladesh is the world’s second largest exporter of clothes after China. The country’s garment exports, widely seen as the bellwether of its economy, have been declining for the past two years.

The ready-made garments sector accounts for more than 80% of Dhaka’s export earnings. The sector employs 4 million workers and contributes nearly 10% to gross domestic product.