U.S., Bangladesh Sign Trade Deal Cutting Tariffs to 19%

The United States and Bangladesh have signed a new Reciprocal Trade Agreement (RTA), under which the U.S. will further reduce reciprocal tariffs on Bangladeshi exports from 20% to 19%, providing additional relief for Bangladesh's export-oriented industries, particularly the garments sector. The agreement was signed on February 9, 2026, marking the latest step in the two countries' efforts to deepen bilateral trade ties.

The latest cut follows an earlier adjustment in August 2025, when the proposed tariff rate was reduced sharply from an initial 37% to 20%. The new agreement is expected to ease cost pressures on Bangladeshi exporters while significantly expanding U.S. access to the Bangladeshi market.

Key Commitments by the United States

Under the agreement, the United States committed to:

• Lowering reciprocal tariff rates on most Bangladeshi products entering the U.S. market to 19%.

• Introducing exemption mechanisms for selected Bangladeshi textile and apparel products. Goods manufactured using U.S.-origin inputs — such as American cotton or synthetic fibers — will be eligible for a 0% tariff rate. The U.S. will establish specific procedures to assess and approve zero-tariff eligibility for these products.

Key Commitments by Bangladesh

Bangladesh, in turn, agreed to a wide-ranging set of market-opening and regulatory commitments, including:

• Granting zero-duty or low-duty access for approximately 4,400 U.S. products, covering chemicals, medical devices, machinery, motor vehicle parts, information and communications technology equipment, energy products, soybean products, dairy, beef, poultry, nuts, and fruits.

• Addressing non-tariff barriers affecting bilateral trade and investment, including accepting vehicles that comply with U.S. federal motor vehicle safety and emissions standards; recognizing U.S. Food and Drug Administration (FDA) certifications and premarket authorizations for medical devices and pharmaceuticals; and eliminating import restrictions or licensing requirements on U.S. remanufactured products and parts.

• Allowing the free flow of data within trusted boundaries; supporting a permanent World Trade Organization (WTO) ban on customs duties on electronic transmissions; adopting science- and risk-based procedures to permit imports of safe U.S. food and agricultural products; removing barriers in the insurance market; digitizing customs procedures; and adopting and implementing good regulatory practices.

• Protecting internationally recognized labor rights, including adopting and enforcing measures to prohibit imports produced with forced or compulsory labor; amending labor laws to ensure full freedom of association and collective bargaining rights; and strengthening labor law enforcement.

• Maintaining high standards of environmental protection, effectively enforcing environmental laws, improving customs and trade facilitation, and addressing distortions caused by subsidies and state-owned enterprises.

• Strengthening intellectual property protection and enforcement, including ratifying or acceding to and fully implementing certain international intellectual property treaties. Bangladesh also committed to pioneering provisions on geographical indications to protect U.S. market access, particularly for U.S. cheese and meat producers that rely on the use of common names.

• Enhancing economic and national security coordination with the United States through complementary actions to address global unfair trade practices, strengthen supply chain resilience and innovation, combat tax evasion, cooperate on export controls, and share information on investments within their respective territories.

• Strengthening and enforcing comprehensive anti-corruption laws.

The United States also indicated that, consistent with applicable laws, it will consider supporting investment financing in key Bangladeshi sectors through institutions such as the Export-Import Bank of the United States (EXIM Bank) and the U.S. International Development Finance Corporation (DFC), potentially in partnership with U.S. private-sector entities.

Major Commercial Deals Highlighted

Both governments also noted recent and prospective commercial transactions across agriculture, energy, and technology sectors, including:

• A potential purchase by Bangladesh of 25 Boeing aircraft, valued at tens of billions of U.S. dollars.

• Approximately USD 3.5 billion in purchases of U.S. agricultural products, including wheat, soybeans, cotton, and corn.

• An estimated USD 15 billion in energy product purchases over a 15-year period.

The agreement underscores a deepening U.S.–Bangladesh trade relationship, aimed at boosting bilateral commerce, improving regulatory alignment, and enhancing supply chain resilience amid a complex global trade environment.