The United States has reduced the reciprocal tariff on Bangladeshi goods to 19%, which was originally set at 37% and later cut to 20% in August last year.
Bangladesh and the United States signed an agreement on the reciprocal tariff on Monday.
On the Bangladesh side, Commerce Adviser Sk Bashir Uddin and National Security Adviser Khalilur Rahman, and on the US side, Ambassador Jamieson Greer, US trade representative, signed the agreement.
Negotiations on the agreement spanned over nine months since April last year.
After the signing, Commerce Adviser Bashir Uddin, who led the Bangladesh side in the negotiations, said the agreement marked a historic new level in bilateral economic and trade relations.
"It will provide substantially enhanced access for Bangladesh and the US to each other's respective markets," he said.
Ambassador Greer lauded Chief Adviser Prof Muhammad Yunus for his overarching leadership of the negotiation process and praised the Bangladesh negotiating team for its "incredible efforts".
"This agreement will fit Bangladesh on US trade policy," he added.
Under the agreement, the US also committed to establishing a mechanism for certain textile and apparel goods from Bangladesh, using US-produced cotton and man-made fibre, 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 Khalilur Rahman who was Bangladesh's chief negotiator.
The agreement was approved by the Council of Advisers on Monday and will be operational once notifications are issued by the two sides.
Present during the signing were Commerce Secretary of Bangladesh Mahbubur Rahman and Assistant US trade representative Brendan Lynch.
Bd-pratidin English/ ANI
