‘Reciprocal trade deal with US set to boost investment’
Staff Reporter :
Commerce Adviser Sk Bashir Uddin on Tuesday described the signing of the Agreement on Reciprocal Trade (ART) with the United States as a landmark moment for bilateral relations, saying it is poised to attract international investment and strengthen Bangladesh’s strategic role in the Indo-Pacific region.
Speaking at a press conference at the Ministry of Commerce, he noted that the government formally signed the ART last night, marking a transformative step in the country’s economic trajectory.
The agreement follows nine months of intensive negotiations coordinated by the Ministry of Commerce, the National Board of Revenue, the Bangladesh Embassy in Washington, and other relevant ministries, initiated after the US imposed reciprocal tariffs on Bangladeshi exports in April 2025.
Through these discussions, Bangladesh successfully negotiated a reduction of the reciprocal tariff rate to 19 percent, a key achievement in restoring trade competitiveness.
Bashir highlighted that the ART is central to the interim government’s strategy to modernise the national economy and integrate the country into global value chains (GVCs).
“By providing a predictable and transparent trade environment, the framework is expected to attract high-value foreign investment and improve trade facilitation,” he said.
The ART covers a wide spectrum of areas, including trade in goods and services, customs and trade facilitation, rules of origin, sanitary and phytosanitary standards, technical barriers to trade, investment, e-commerce, government procurement, intellectual property rights, labour, environment, competition, subsidies, state-owned enterprises, transparency, and cooperation.
A special provision for textiles and apparel, introduced at Bangladesh’s request, allows a specified volume of exports to enter the US duty-free if US-produced textile inputs, such as cotton or man-made fibres, are used.
Bashir said this is unique among US trade agreements and will require strengthening backward linkages in the textile sector.
The ART also provides duty-free access for selected pharmaceutical and agricultural products, helping diversify exports beyond apparel.
It secures flexibility in digital trade, ensures that rules of origin are developed in consultation with Bangladesh, and offers staged tariff reductions for US goods.
The agreement also includes commitments on labour, environment, governance, and transparency, along with an exit clause incorporated at Bangladesh’s initiative.
Overall, Bashir said the ART is a balanced, strategic, and forward-looking framework expected to expand market access, promote investment and trade, protect regulatory space in digital trade, and deepen Bangladesh’s integration into global value chains, while safeguarding national interests.