Bangladesh Eases Export Duties to U.S., Implementing a 20% Reduction
In a landmark agreement, Bangladesh secures a trade pact with the U.S. to lower the initial 35% duty, offering further reductions for incorporating 20% U.S. goods.
Bangladesh eases tariff burden. The country’s government has succeeded in reducing tariffs on exports to the United States from the initial 35% to 20%. In addition, products exported from the U.S. country with more than 20% U.S. content will get a further reduction.
This reciprocal tariff negotiation between the United States and Bangladesh took place at an event organized by the Bangladesh Textile Mills Association (Btma) in Dhaka. There, the president of the employers’ association, Showkat Aziz Russell, revealed that the textile industry has a total investment of $75 billion, with the aim of increasing annual exports from the current $41 billion to $50 billion.
The tariff to which Bengali exports will now be subject, therefore, is closer to the figure imposed on other producing countries such as Sri Lanka, Vietnam, Pakistan or Indonesia. This reduction also gives the country a competitive advantage over India, one of its main competitors, which has a 25% levy, plus another 25% for the “direct or indirect” purchase of Russian oil.
