Following nine months of intensive negotiations, Bangladesh and the United States have signed a significant bilateral trade agreement today. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the apex body of the country’s apparel industry, welcomes this development.
BGMEA expresses its sincere gratitude to the Government of the United States and the Interim Government of Bangladesh for their leadership and commitment in reaching this agreement. We particularly thank Honorable Chief Adviser Dr. Muhammad Yunus, National Security Adviser Khalilur Rahman, Commerce Adviser Sheikh Bashir Uddin, and Commerce Secretary Mahbubur Rahman for their dedicated efforts. BGMEA also acknowledges the constructive support of the U.S. Embassy in Dhaka and the Office of the United States Trade Representative (USTR) in facilitating the process.
According to preliminary information received by BGMEA, the agreement reduces the retaliatory tariff on Bangladeshi exports to the U.S. from 20 percent to 19 percent. Notably, garments produced using U.S.-origin cotton and man-made fibers will be exempt from retaliatory tariffs. BGMEA believes this provision could significantly enhance Bangladesh’s market access and competitiveness in the U.S. apparel market.
However, to fully leverage this opportunity, it will be essential to establish proper valuation mechanisms and ensure robust traceability systems for U.S.-sourced raw materials.
BGMEA further notes that U.S. cotton is widely recognized for its superior quality but remains relatively expensive. If local spinners can ensure competitive yarn pricing, this agreement may create substantial opportunities for export growth.
It is important to mention that BGMEA has not yet received the complete official documentation outlining the final terms and conditions of the agreement. Upon receiving detailed information from the government, BGMEA will convene an urgent meeting with its members and engage with the U.S. Embassy in Dhaka and USTR to determine the next course of action.
