Bangladesh clinched a pivotal trade agreement with the United States on February 9, 2026, slashing reciprocal tariffs to 19% and granting zero-duty access for ready-made garments (RMG) using US cotton/synthetics Bangladesh US trade deal.Interim chief Muhammad Yunus hailed nine-month negotiations yielding mechanism for duty-free US market entry. Signed Washington by Commerce Adviser Sheikh Bashir Uddin, USTR Jamieson Greer.
Deal Zeroes RMG Tariffs with US Inputs
RMG – 80%+ exports, 4M jobs (mostly women), 10% GDP – gains zero reciprocal duty on US cotton/man-made fiber products. Commerce Secretary Mahbubur Rahman confirmed synthetics imported US qualify. Relief from initial 37% proposal, down August 20%, now 19%.
Yunus X-post: Washington commits “mechanism for certain textile/apparel goods… zero reciprocal tariff (US market).” Pro-US stance credited post-July Uprising interim regime.
Bangladesh Concessions Unlock Gains
Counter commitments: Import US wheat, soy, LNG sans tariffs; e-commerce duty-free; US IP standards compliance; WTO reform support. Recent 25 Boeing aircraft deal (Tk30-35,000 crore) eases tensions. EPB: US largest export market.
Negotiation Marathon Details
Talks spanned April 2025 amid Trump reelection tariffs. Bangladesh policymakers eyed 15%; 19% geopolitical win vs Vietnam (20%), Pakistan/Cambodia/Indonesia (19%). India 18-50% cut demands Russian oil halt. For in-depth report read here.
RMG Sector Economic Lifeline
Apparel exporters celebrate: Zero-tariff US cotton RMG competitive edge, order surge expected. Builds value-chain partnership; 80% earnings safeguard amid global slowdown. Analysts: Game-changer lowering costs, boosting volumes.
Political Timing Critical
Deal precedes February 12 election ending 18-month Yunus interim post-Hasina fall. Student-led uprising catalyst; new leadership inherits boosted trade ties amid stability push. More global trade insights: World News Section.
Competitor Comparison Table
| Country | Reciprocal Tariff | Notes |
|---|---|---|
| Bangladesh | 19% | Zero RMG US cotton |
| Vietnam | 20% | Closest rival |
| Pakistan | 19% | Equivalent |
| Cambodia | 19% | Equivalent |
| Indonesia | 19% | Equivalent |
| India | 18-50% | Oil-linked |
Commerce Ministry Provisions Breakdown
Cotton/Synthetics RMG: Zero duty US-sourced
Agriculture Imports: Wheat/soy/LNG tariff-free
Digital Trade: No e-commerce duties
IP/WTO: Full US alignment
White House Framework Details
US-Bangladesh framework commits $15B US energy purchases (15 years), $3.5B agricultural imports alongside 19% tariff cut. Bangladesh opens chemicals, medical devices, machinery, ICT, vehicles to US standards without extra inspections. Digital trade facilitation, remanufactured goods licensing removed. Formal agreement follows domestic approvals solidifying reciprocal access for 175M consumer market.
Yunus Leadership Trade Legacy
Nobel laureate Yunus, interim helm since August 2024, prioritizes exports amid turmoil. Boeing mega-deal, tariff wins signal investor confidence. US Treasury silent; analysts link Trump geopolitics favoring Bangladesh stability.
RMG Impact Deep Dive
4M workforce (85% women) eyes sustained employment. EPB projects 10-15% US order growth; Tk30-35k crore Boeing aids balance-of-payments. Reduces India/Vietnam edge in apparel hubs.
#Bangladesh US trade deal/sbkinews.in
Broader US-South Asia Strategy
US counters China via concessions; Bangladesh emerges favored post-uprising. India faces stricter terms sans similar yields. Deal mechanism formalizes preferences, potentially preferential pact precursor.
Industry Voices
BGMEA President: “Lifeline for 4M jobs; zero-tariff revolutionizes sourcing.”
EPB Director: “US #1 market fortified; GDP multiplier assured.”
Analyst Faruq Ahmad: “9-month grind yields 80% export shield.”
Election Overlay
February 12 polls select post-interim government. Yunus exit looms; successor inherits fortified US ties amid RMG boom. Stability premium evident in swift Washington closure.
Historical Context Table
| Milestone | Date | Impact |
|---|---|---|
| Initial Proposal | Early 2025 | 37% tariff threat |
| First Reduction | Aug 2025 | Down to 20% |
| Final Deal | Feb 9, 2026 | 19% + Zero RMG |
| Boeing Aircraft | Recent | Tk30-35k Cr imports |
Future Implications
Zero-tariff incentivizes US cotton imports, deepening supply chains. WTO reforms support signals Bangladesh maturity. RMG diversification (synthetics) hedges cotton volatility. US market share targets 35%+ by 2027.
Bangladesh US trade deal cements strategic partnership. 19% tariff cut, zero-duty RMG lifeline empowers 80% export engine. Yunus-era capstone boosts election momentum, global positioning amid rivals. Textiles triumph reshapes South Asian trade dynamics.