U.S.–Bangladesh Sign Reciprocal Trade Agreement, Expanding
Market Access and Strategic Alignment
·
Agreement signed:
On 9 February 2026,
U.S. Trade Representative Ambassador
Jamieson Greer and Bangladesh’s Commerce Adviser Sheikh Bashir Uddin
signed the United
States–Bangladesh Agreement on Reciprocal Trade.
·
First of its kind in South Asia:
This is the first
reciprocal trade agreement in South Asia under the Trump
administration’s trade strategy.
·
Strategic objective:
The agreement aims to open
markets, address tariff
and non-tariff barriers, and strengthen economic and security ties,
while supporting American workers and exporters.
·
Enhanced market access for the U.S.:
The deal provides American exporters improved access to Bangladesh’s 175 million–consumer market,
strengthening bilateral trade.
·
Tariff commitments:
o Bangladesh will grant preferential access for
U.S. industrial and agricultural goods, including machinery, chemicals, medical
devices, ICT equipment, vehicles, energy products, soy, dairy, beef, poultry,
and fruits.
o The U.S. will maintain
a 19% reciprocal tariff
on Bangladeshi imports, with zero
tariffs for selected products listed in Annex III for aligned
partners.
·
Reduction of non-tariff barriers (industrial goods):
Bangladesh will recognize U.S.
safety and emissions standards for vehicles, accept FDA certifications for
medical devices and pharmaceuticals, and remove restrictions on remanufactured goods.
·
Agricultural market reforms:
Bangladesh committed to accepting U.S.
regulatory certificates, recognizing U.S. sanitary and phytosanitary standards,
and preventing unjustified barriers to U.S. farm exports.
·
Stronger labor protections:
Bangladesh agreed to protect internationally recognized labor
rights, including banning forced
labor imports, strengthening union
rights, reforming labor laws, reviewing minimum
wages, and improving enforcement.
·
Digital trade and services liberalization:
Commitments include free
cross-border data flows, support for a WTO moratorium on
customs duties on electronic transmissions, and removing barriers in the insurance sector.
·
Geographical Indications (GIs):
Bangladesh agreed to protect U.S. market access for cheese and meat products using common
names, ensuring GIs do not unfairly restrict U.S. exports.
·
Intellectual property protection:
Bangladesh will enhance IP
enforcement, combat theft, and join and implement key
international IP treaties.
·
Economic security cooperation:
Both countries committed to improving supply
chain resilience, coordinating on export controls, countering
duty evasion, and sharing investment-related information.
·
Environmental and subsidy disciplines:
Bangladesh pledged stronger environmental
enforcement, curbs on distortive practices by state-owned enterprises,
and action against harmful manufacturing subsidies.
·
Governance and facilitation reforms:
Commitments include advancing anti-corruption
laws, trade facilitation measures, and good regulatory
practices.
·
Commercial deals noted:
The agreement recognizes $3.5
billion in agricultural purchases (wheat, soy, cotton),
alongside deals in energy
and civil aviation.
·
Trade context:
The U.S. goods trade deficit with Bangladesh stood at $6.1 billion in 2024.
·
Next steps:
Both countries will complete domestic procedures before the agreement enters into force.
·
Broader trade strategy:
The deal aligns with President Trump’s push against unfair trade practices
and follows similar agreements with Malaysia,
Cambodia, El Salvador, Guatemala, and Argentina.
Overall takeaway:
The U.S.–Bangladesh Reciprocal Trade Agreement significantly expands U.S.
market access, tightens labor, digital, and IP
standards in Bangladesh, and reinforces America’s broader strategy of linking
trade liberalization with economic security and reciprocity.
Ambassador Greer Signs the United States-Bangladesh
Agreement on Reciprocal Trade
On 9 February, 2026, Ambassador Jamieson
Greer joined Bangladesh’s Adviser for Commerce, Textiles and Jute, and Civil Aviation
and Tourism Sheikh Bashir Uddin in signing the United States–Bangladesh Agreement
on Reciprocal Trade.
“Under President Trump’s leadership, the
United States is pursuing a trade policy that delivers real results for American
workers and businesses, strengthening our economic and security partnerships abroad,”
said Ambassador Greer. “Today’s signing of the Agreement on Reciprocal Trade
with Bangladesh is the first in South Asia and marks a meaningful step forward in
opening markets, addressing trade barriers, and creating new opportunities for American
exporters. I commend Bangladesh’s Commerce Adviser Sheikh Bashir Uddin for his constructive
engagement to achieve a more balanced and reciprocal trading relationship.”
Fact Sheet: The United States
and Bangladesh Reach an Agreement on Reciprocal Trade
CONTINUING TO DELIVER ON RECIPROCAL TRADE:
Today, President Donald
J. Trump announced a trade agreement that will provide the United States with unprecedented
levels of market access in Bangladesh and strengthen our bilateral economic relationship. The United States and Bangladesh reached an Agreement
on Reciprocal Trade, a legally binding agreement, that will provide American exporters
with access to Bangladesh’s market of 175 million people while bolstering U.S. national
and economic security.
Key terms of the U.S.-Bangladesh Agreement
on Reciprocal Trade include:
·
Tariffs:
o
Bangladesh has committed to provide significant preferential market access
for U.S. industrial and agricultural goods, including chemicals, machinery and parts,
medical devices, motor vehicles and parts, information and communications technology
equipment, energy products, soy products, dairy products, beef, poultry, and tree
nuts and fruit, supporting high-quality American jobs.
o
The United States will maintain a 19 percent reciprocal tariff rate for imports
of Bangladesh except for identified products from the list set out in Annex III
(Potential Tariff Adjustments for Aligned Partners) to Executive Order 14346 of
September 5, 2025 (Modifying the Scope of Reciprocal Tariffs and Establishing Procedures
for Implementing Trade and Security Agreements), as amended, which will receive
a zero percent reciprocal tariff rate.
·
Breaking Down Non-Tariff Barriers for U.S. Industrial Exports: Bangladesh has committed to address a
range of non-tariff barriers that affect bilateral trade and investment in priority
areas, including by Bangladesh accepting vehicles built to U.S. Federal motor vehicle
safety and emissions standards; accepting FDA certificates and prior marketing authorizations
for medical devices and pharmaceuticals; and removing any import restrictions or
licensing requirements on U.S. remanufactured goods or their parts.
·
Breaking Down Non-Tariff Barriers for U.S. Agriculture Exports: Bangladesh has committed to address and
prevent barriers to U.S. agricultural exports in its market, including by accepting
certificates issued by U.S. regulatory authorities and recognizing U.S. sanitary
and phytosanitary measures and other measures for food and agricultural products.
·
Strengthening Labor Protections: Bangladesh has committed to protect internationally
recognized labor rights. Bangladesh will, among other
commitments, adopt and implement a prohibition on the importation of goods produced
by forced or compulsory labor; amend its labor laws to ensure that workers’ rights to freedom of association
and collective bargaining are fully protected, including in export processing zones;
resolve criminal cases against workers for participating in union activities; adopt
a minimum wage review mechanism; and strengthen enforcement of its labor laws.
·
Removing Barriers for Digital Trade, Services, and Investment: Bangladesh has committed to permit the
free transfer of data across trusted borders; support the adoption of a permanent
moratorium on customs duties on electronic transmissions at the WTO; and remove
barriers in the insurance market.
·
Geographical Indications (GIs) and Market Access: Bangladesh has committed to groundbreaking
provisions that will preserve current and future U.S. market access for U.S. cheese
and meat producers who rely on the use of common names. This includes ensuring that market access will
not be restricted due to the mere use of certain cheese and meat terms. Bangladesh has also committed to robust standards
for transparency and fairness regarding the protection of GIs and to ensure that
U.S. products can continue using terms that have been unfairly protected as GIs.
·
Protecting and Enforcing Intellectual Property: Bangladesh has made commitments that
will benefit American innovators and creators by enhancing intellectual property
protection and prioritizing enforcement against intellectual property theft. This includes joining and fully implementing key
international intellectual property treaties.
·
Strengthening Economic Security Alignment: The United States and Bangladesh are
committed to strengthening cooperation to increase supply chain resilience. This includes taking complementary actions to
address unfair trade policies of third countries, cooperating on export controls,
addressing duty evasion, and sharing information on inbound investment in our respective
territories.
·
Strengthening Environmental Enforcement: Bangladesh has committed to adopt and
maintain high levels of environmental protection and to effectively enforce its
environmental laws.
·
Confronting State-Owned Enterprises and Subsidies: Bangladesh has committed to address distortionary
behaviors of its state-owned enterprises when engaging
in commercial activities and address distortions caused by domestic manufacturing
subsidies.
·
Advancing Anti-Corruption, Trade Facilitation and Good Regulatory Practices:
Bangladesh has committed
to strengthen comprehensive anti-corruption laws, advance trade facilitating measures,
and adopt and implement good regulatory practices at the central level of government.
·
Notching Commercial Deals: The United States and Bangladesh take note of commercial deals in the agriculture,
energy, and civil aviation sectors, which will further increase U.S. exports to
Bangladesh. Agricultural deals include purchases
of wheat, soy and soy products, and cotton, with an estimated total value of $3.5
billion.
THE PROSPEROUS PATH FORWARD: In the coming weeks, the United States
and Bangladesh will undertake applicable domestic procedures in advance of the Agreement
entering into force, in order to lock in benefits for American businesses and workers.
·
The U.S. total goods trade deficit with Bangladesh was $6.1 billion in 2024.
·
President Trump has delivered a forward-looking and tough trade deal that
will benefit American workers, exporters, farmers, small businesses, and digital
innovators—this deal is what winning looks and will feel like for all Americans.
LIBERATING AMERICA FROM UNFAIR TRADE PRACTICES: Since Day One, President Trump challenged
the assumption that American workers and businesses must tolerate unfair trade practices
that have disadvantaged them for decades and contributed to our historic trade deficit.
·
On April 2, 2025, President Trump declared a national emergency in response
to the large and persistent U.S. goods trade deficit caused by a lack of reciprocity
in our bilateral trade relationships, unfair tariff and non-tariff barriers, and
U.S. trading partners’ economic policies that suppress domestic wages and consumption.
·
President Trump continues to advance the interests of the American people
and our agricultural sector by removing tariff and non-tariff barriers and expanding
market access for American exporters.
·
The United States has reached agreements on reciprocal trade with Malaysia
and Cambodia (October 26, 2025), El Salvador (January 29, 2026), Guatemala (January
30, 2026), and Argentina (February 5, 2026).
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Today’s announcement further shows that America can defend its domestic production
while obtaining expansive market access with our trading partners.