The Economic Times | 10 February 2026
US-Bangladesh trade deal: Check key terms of the pact agreed between Trump and Yunus
Bangladesh and the United States signed a trade deal to strengthen the bilateral economic relationship, slashing reciprocal tariffs on India's neighbour to 19 per cent after nine months of negotiations.
With the Bangladesh general elections due on February 12, the Chief Adviser of the Government of Bangladesh, Muhammad Yunus, announced the reciprocal tariff agreement signed by Commerce Adviser Sheikh Bashir Uddin, National Security Adviser Khalilur Rahman, US Ambassador Jamieson Greer and US Trade Representative.
In a post on X, Yunus said Ambassador Greer lauded him for his overarching leadership of the negotiations process and praised the Bangladesh negotiating team for its "incredible efforts," adding that this agreement will fit Bangladesh on US trade policy.
"The Agreement will provide U.S. and Bangladeshi exporters unprecedented access to each other’s respective markets. The Agreement will build upon our longstanding economic relationship, including the U.S.-Bangladesh Trade and Investment Cooperation Forum Agreement (TICFA), signed in 2013," the White House said.
Bangladesh-US trade deal key agreements:
Reciprocal tariff rate: The US will reduce the reciprocal tariff rate, as initially set forth in Executive Order 14257 of April 2, 2025, to 19 per cent on originating goods of Bangladesh.
Conditional zero per cent tariff: Additionally, the country will identify 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) to receive a zero per cent reciprocal tariff rate.
Tariff on textile and apparel goods: US will establish a mechanism that will allow for certain textile and apparel goods from Bangladesh to receive a zero reciprocal tariff rate. This mechanism will provide that a to-be-specified volume of apparel and textile imports from Bangladesh can enter the US at this reduced tariff rate. However, the volume shall be determined in relation to the quantity of exports of textiles, e.g. U.S.-produced cotton and man-made fiber textile inputs.
Agri and industry: Under the trade pact, Bangladesh committed to provide significant preferential market access for U.S. industrial and agricultural goods. This would include chemicals, medical devices, machinery and motor vehicles and parts, information and communication technology (ICT) equipment, energy products, soy products, dairy products, beef, poultry, and tree nuts and fruit.
Addressing non-tariff barriers: The two countries committed to address Bangladesh's non-tariff barriers that affect bilateral trade and investment in priority areas, including accepting vehicles built to U.S. Federal motor vehicle safety and emissions standards, accepting U.S. Food and Drug Administration certificates and prior marketing authorizations for medical devices and pharmaceuticals by Bangladesh. They also committed to removing any import restrictions or licensing requirements on U.S. remanufactured goods or their parts.
Free data transfer across border: Poll-bound Bangladesh committed to permit the free transfer of data across "trusted borders" and support the adoption of a permanent moratorium on customs duties on electronic transmissions at the World Trade Organisation. It will also follow science and risk-based processes to allow the import of safe U.S. food and agricultural goods, remove barriers in the insurance market, digitalise its customs procedures and adopt and implement good regulatory practices.
Green rules and fair trade: Under the trade agreement with the US, Bangladesh committed to adopt and maintain high levels of environmental protection and effectively enforce its environmental laws, improve customs and trade facilitation and address distortions caused by subsidies and state-owned enterprises.
Intellectual property rights: Bangladesh committed to a robust standard for intellectual property protection and enforcement, including ratifying or acceding to and fully implementing certain international IP treaties. Bangladesh also committed to groundbreaking provisions on geographical indications that will preserve U.S. market access, particularly for U.S. cheese and meat producers who rely on the use of common names.
Overseas trade: The two countries aim to strengthen economic and national security alignment to enhance supply chain resilience and innovation through complementary actions to address unfair trade practices worldwide, as well as by combatting duty evasion, cooperating on export controls, and 'sharing information on inbound investment' in respective territories.
US to support Bangladesh's critical sectors: The US shall work through its institutions, such as the Export-Import Bank (EXIM Bank) and the U.S. International Development Finance Corporation (DFC), if eligible, to consider supporting investment financing in critical sectors in Bangladesh in collaboration with U.S. private sector partners, consistent with applicable law.
Bangladesh also committed to strengthening and enforcing comprehensive anti-corruption laws.
In a joint statement, the two countries mentioned recent and forthcoming commercial deals in the areas of agriculture, energy, and technology.
This includes procurement of aircraft (volume and amount undisclosed), purchases of approximately $3.5 billion of U.S. agriculture products, including wheat, soy, cotton, and corn, and purchases of energy products, with an estimated value of $15 billion over 15 years.
The US and Bangladesh, consistent with their respective internal procedures, will promptly finalise the reciprocal trade agreement and undertake domestic formalities in advance of the agreement entering into force, the White House said.
