Bangladesh to sign reciprocal tariff trade deal with US
Bangladesh is set to sign a reciprocal tariff agreement with the United States today in Washington, a move aimed at narrowing trade imbalances and safeguarding Bangladeshi exports’ access to the world’s largest consumer market.
Commerce Adviser Sk Bashir Uddin and Commerce Secretary Mahbubur Rahman will join the signing ceremony virtually from Dhaka, while a Bangladeshi delegation led by Additional Secretary Khadija Naznin, who heads the WTO wing, will be present in Washington. The agreement will be formally exchanged once US Trade Representative Jamieson Greer signs the document already endorsed by Bangladesh in Dhaka.
The deal comes against the backdrop of Washington’s broader push to impose reciprocal tariffs on trading partners to reduce its trade deficit. Since August last year, Bangladeshi exports to the US have faced a 20 percent reciprocal tariff, affecting shipments worth around $8 billion annually. In contrast, US exports to Bangladesh stand at roughly $2 billion, creating a sizeable trade gap.
Officials said the agreement includes commitments by Bangladesh to boost imports from the US, particularly wheat, edible oil, cotton and fuel. As part of the trade-balancing effort, the government has also decided to purchase 25 aircraft from US-based Boeing, a move officials say is critical to maintaining uninterrupted market access for Bangladeshi goods.
Speaking to reporters, Bashir said the aircraft purchase, estimated at Tk30,000–35,000 crore, would be spread over a 20-year payment period. He noted that Washington initially proposed the sale of 47 aircraft, but Dhaka opted for 25 at this stage to limit financial pressure. The interim government, he said, wanted to finalise key trade arrangements now to ease the burden on the next elected administration.
Bashir said negotiations with the US had already reduced an initially proposed 37 percent tariff to 20 percent. Talks are continuing to further lower duties on Bangladesh’s main export, readymade garments, with the goal of eventually securing zero tariffs.
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