Washington: The United States and Bangladesh on Monday signed the United States–Bangladesh Agreement on Reciprocal Trade, marking a major step in strengthening bilateral economic and trade relations, the Office of the US Trade Representative said.

The agreement was signed by US Trade Representative Jamieson Greer and Bangladesh’s Adviser for Commerce, Textiles and Jute, and Civil Aviation and Tourism, Sheikh Bashir Uddin. Also present at the signing were Bangladesh Commerce Secretary Mahbubur Rahman and Assistant US Trade Representative Brendan Lynch.

In a statement, Greer said the agreement was a key part of the US trade policy under President Donald Trump. “Under President Trump’s leadership, the United States is pursuing a trade policy that delivers real results for American workers and businesses, strengthening our economic and security partnerships abroad,” he said.

He added that the agreement was “the first in South Asia” and described it as “a meaningful step forward in opening markets, addressing trade barriers, and creating new opportunities for American exporters.”

“I commend Bangladesh’s Commerce Adviser Sheikh Bashir Uddin for his constructive engagement to achieve a more balanced and reciprocal trading relationship,” Greer said.

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Bangladesh’s Chief Adviser Muhammad Yunus described the deal as a “historically new level” in bilateral economic ties. A statement from the interim government said the agreement would provide “substantially enhanced access” for both countries to each other’s markets.

The US will further reduce its reciprocal tariff to 19 per cent, down from 37 per cent and from 20 per cent following a cut in August last year, the statement said.

In addition, the United States has committed to a mechanism that would allow certain textile and apparel goods from Bangladesh that use US-produced cotton and man-made fibres to receive zero reciprocal tariff in the US market.

“The reduction of reciprocal tariff will grant further advantage to our exporters, while zero reciprocal tariff on specific textile and apparel exports from Bangladesh using US inputs will give substantial added impetus to our garments sector,” said NSA Rahman, Bangladesh’s chief negotiator.

The agreement was approved by the Council of Advisers on Monday and will become operational once notifications are issued by both countries.

(PTI)