Bangladesh agreed to provide significantly preferential market access for some U.S. industrial and agricultural products.
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Published February 9, 2026
Bangladesh secured a 19% reduction in tariff rates with the United States and granted exemptions to some textile products and clothing made with American materials under a trade agreement signed between the two countries.
The trade deal was announced on Monday.
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Mohammad Yunus, chief advisor to Bangladesh’s caretaker government, said the U.S. government was “committed to establishing a mechanism whereby certain Bangladeshi textile and apparel products made from U.S.-produced cotton and man-made fibers would receive zero reciprocal tariffs in the U.S. market.”
The White House announced that Bangladesh has agreed to provide significant preferential market access to U.S. industrial and agricultural products, including chemicals, medical devices, machinery, automobiles and parts, soy products and dairy products, beef, poultry, tree nuts and fruit.
Bangladesh will also ease non-tariff barriers by accepting U.S. vehicle safety and emissions standards, approving U.S. Food and Drug Administration certifications, and removing import restrictions on refurbished products, the White House added.
The countries also cited recent and upcoming commercial transactions, including aircraft procurement, approximately $3.5 billion in purchases of U.S. agricultural products, and purchases of U.S. energy products estimated at $15 billion over 15 years.
Yunus said the agreement was concluded after nine months of negotiations that began in April last year.
Bangladesh also pledged to uphold internationally recognized labor rights and strengthen environmental protection.
In August, the South Asian nation secured a reduction in U.S. tariffs on its exports to 20% from the 37% originally proposed by Washington, providing much-needed relief to the country’s apparel exporters.
The ready-made garment sector is the backbone of Bangladesh’s economy, accounting for over 80% of total export earnings, employing around 4 million workers and contributing around 10% of gross domestic product.
With a tariff rate of 19%, Bangladesh will have no problem competing with neighboring India, whose tariff rate has been set at 18%, down from a devastating 50%. Both countries produce clothing and footwear for U.S. customers. When the first round of tariffs was announced on April 2, India was slapped with a 25% tariff and Dhaka was hit with an even steeper 37%. At that time, Bangladeshi manufacturers were afraid of losing customers to the Indian market. Now they are both on equal footing.
Bangladesh has been ruled by a caretaker government since August 2024, but ousted former Prime Minister Sheikh Hasina went into exile in India, where she remains, and heads to the polls on Thursday to elect a new leadership.
