BGMEA welcomes Bangladesh–US reciprocal tariff agreement
The garment makers' body says the deal could unlock fresh export opportunities, especially for products made with US-origin fibres, while awaiting full details from the government.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has welcomed the signing of a reciprocal tariff agreement between Bangladesh and the United States, following nine months of intensive negotiations between the two countries.
In a press release, BGMEA expressed its appreciation to the Government of the United States and thanked the interim government of Bangladesh, particularly Chief Adviser Professor Muhammad Yunus, National Security Adviser Khalilur Rahman, Commerce Adviser Sheikh Bashir Uddin and Commerce Secretary Mahbubur Rahman, for their leadership in reaching the agreement.
The association also acknowledged the cooperation of the US Embassy in Dhaka and the Office of the United States Trade Representative (USTR) throughout the process.
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Based on preliminary information available to BGMEA, the agreement reduces the reciprocal tariff on Bangladeshi products entering the US market from 20% to 19%.
Notably, garments manufactured using cotton and man-made fibres imported from the United States will be exempt from reciprocal tariffs, a provision BGMEA believes will further strengthen Bangladesh's access to the US market.
However, BGMEA noted that effective implementation will require robust valuation and traceability mechanisms to verify the use of US-origin raw materials in garment production.
The association said that the provision could open up significant export opportunities, particularly if local spinning mills are able to supply competitively priced yarn, as US cotton is generally of higher quality but also more expensive.
BGMEA added that it has yet to receive the full terms and conditions of the agreement officially. Once detailed documentation is provided by the government, the association will convene an urgent meeting with its members and engage with the US Embassy in Dhaka and the USTR to assess implications and determine the next steps.
