Bangladesh has secured exemptions for some clothes and textiles that are made with US-produced materials, as part of a new agreement announced on Monday. Washington will also cut its tariffs on Bangladesh from 20% to 19%, in exchange for Dhaka to open its markets to a wider range of American goods.
The apparel industry forms the backbone of Bangladesh, which is the world’s second largest exporter of clothes after China. The South Asian country has been in long-drawn talks with the White House after President Donald Trump imposed sweeping tariffs on global trading partners in April last year.
The White House said in a joint statement between the sides that the agreement will strengthen the countries’ economic ties and offer both “unprecedented access” to each market. It said the US will lower its tariff rate on Bangladesh and will also identify certain clothing and textile goods from the country to enter the US free of tariffs.
The goods include those produced with American cotton and man-made textiles, the statement said. The volume of these will be determined by how much textiles the US exports to Bangladesh. The clothing sector accounts for more than 80% of Bangladesh’s total export revenue and employs around four million workers. In exchange, Bangladesh has agreed to provide “significant preferential market access” to a host of American agricultural and industrial goods. These include opening up its markets to more US chemicals, medical devices, car parts, soy products and meat, said the White House.
Bangladesh has secured exemptions for some clothes and textiles that are made with US-produced materials, as part of a new agreement announced on Monday. Washington will also cut its tariffs on Bangladesh from 20% to 19%, in exchange for Dhaka to open its markets to a wider range of American goods.
