Dhaka, Bangladesh (BBN) - Bangladesh has committed to purchasing an estimated $15 billion worth of energy products from the United States over the next 15 years under a proposed Agreement on Reciprocal Trade, as the two countries move to deepen bilateral economic engagement, according to a joint statement issued after the agreement was signed yesterday.
The statement said both sides “take note of recent and forthcoming commercial deals in the areas of agriculture, energy, and technology,” including “purchases of energy products, with an estimated value of $15 billion over 15 years.”
The energy commitment forms part of a broader trade package aimed at expanding market access, reducing tariffs and addressing long-standing non-tariff barriers. The agreement builds on existing cooperation, including the US–Bangladesh Trade and Investment Cooperation Forum Agreement (TICFA) signed in 2013.
Under the deal, Bangladesh agreed to provide “significant preferential market access for US industrial and agricultural goods,” covering products such as energy items, chemicals, machinery, motor vehicles and parts, medical devices, ICT equipment, soy, dairy, beef, poultry, and fruits and nuts.
In return, the United States will reduce the reciprocal tariff rate on Bangladeshi-origin goods to 19 per cent and extend zero-duty treatment to selected products. Crucially for the apparel sector, Washington committed to establishing a mechanism under which “a to-be-specified volume of apparel and textile imports from Bangladesh can enter the United States” at a zero reciprocal tariff rate, linked to Bangladesh’s imports of US-produced textile inputs such as cotton and man-made fibres.
This effectively opens the door for ready-made garments produced using US raw materials to enjoy duty-free market access to the US, potentially boosting Bangladesh’s competitiveness in its largest export destination.
Beyond tariffs, both sides agreed to tackle non-tariff barriers affecting trade and investment. The joint statement said Bangladesh would accept vehicles built to US federal motor vehicle safety and emissions standards, recognise US Food and Drug Administration certificates and prior marketing authorisations for medical devices and pharmaceuticals, and remove import restrictions or licensing requirements on US remanufactured goods.
The agreement also includes commitments by Bangladesh 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 World Trade Organization,” digitalise customs procedures, adopt good regulatory practices, and remove barriers in the insurance market.
On labour and sustainability, Bangladesh pledged to protect internationally recognised labour rights, including “adopting and implementing a prohibition on the importation of goods produced by forced or compulsory labour,” strengthening freedom of association and collective bargaining rights, and improving enforcement of labour laws. It also committed to “adopt and maintain high levels of environmental protection and effectively enforce its environmental laws.”
In addition to energy purchases, the two countries also noted other commercial deals, including aircraft procurement and about $3.5 billion worth of US agricultural products, such as wheat, soy, cotton and corn.
The United States said it would work through institutions such as the Export-Import Bank of the United States and the US International Development Finance Corporation to consider supporting investment financing in critical sectors in Bangladesh, in collaboration with US private sector partners.
Both governments said they would “promptly finalize the Agreement on Reciprocal Trade” and complete domestic formalities before it enters into force.
BBN/SSR/AD