FX.co ★ US to Cut Bangladesh Tariffs to 19%

Bangladesh has secured a reduction in US tariffs to 19%, down from 20%, under a trade agreement signed between the two countries on Monday, which grants exemptions for certain textiles and garments made with US-origin materials, Reuters reported. Muhammad Yunus, the chief adviser leading Bangladesh's interim government, said Washington had “committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using US-produced cotton and man-made fibers to receive zero reciprocal tariffs in the US market.”

The White House stated that Bangladesh has agreed to provide substantial preferential market access for US industrial and agricultural products, including chemicals, medical devices, machinery, motor vehicles and parts, soy products and dairy goods, beef, poultry, tree nuts, and fruit. Bangladesh will also reduce non-tariff barriers by recognizing and accepting US vehicle safety and emissions standards.