CA Press Wing defends Bangladesh-US trade pact amid concerns

The Chief Adviser’s Press Wing has defended the recently signed Agreement on Reciprocal Trade (ART) between Bangladesh and the United States, addressing concerns from industry experts that the deal could adversely affect the local economy.
In a statement, the press wing emphasised that the nine-month negotiation process has produced a strategic framework safeguarding Bangladesh’s export competitiveness while offering substantial market access for key sectors.
A key achievement of the ART is the reduction of Bangladesh’s Reciprocal Tariff (RT) from 20% to 19%, following the US Executive Order 14257 in April 2025.
The agreement contains a notable provision for the Readymade Garments (RMG) sector, which accounts for nearly 80% of Bangladesh’s exports to the US. Apparel manufactured using US-sourced cotton or synthetic fibres will enjoy duty-free access, securing the country’s most important export market while keeping production costs manageable for local manufacturers.

Beyond garments, the ART opens the US market to around 2,500 Bangladeshi products at zero tariff. In return, Bangladesh has offered 7,132 tariff lines on a phased basis to protect sensitive industries. Of these, 4,922 lines gain immediate duty-free status, 1,538 will be phased over five years, 672 over ten years, while 326 sensitive lines are excluded entirely.
The statement highlighted that Bangladesh secured more favourable terms than peer nations such as Malaysia or Cambodia. Unlike these countries, Bangladesh is not required to consult the US before entering other digital trade agreements.
The agreement also includes a unique “Exit Clause”, allowing Bangladesh to withdraw from the pact if necessary—a safeguard absent in similar deals signed by other countries.
Additionally, the ART encourages US investment in sectors such as insurance, telecommunications, and energy through liberalised equity limits. It aligns Bangladesh with international standards on intellectual property rights and labour laws, as guided by International Labour Organization (ILO) protocols.

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The government has indicated plans to facilitate imports of Boeing aircraft, LNG, LPG, and agricultural commodities to maintain a balanced trade relationship.
Describing the ART as a forward-looking instrument, the press wing said it protects Bangladesh’s position in its largest export market while establishing a legal framework to navigate future trade challenges.