On February 9, 2026, the United States and Bangladesh signed a landmark Agreement on Reciprocal Trade. This is the first such agreement between the U.S. and a South Asian nation, aimed at creating a more balanced and reciprocal trading relationship.
Key Trade Terms
- Tariff Reductions:
- The U.S. set a 19% reciprocal tariff on Bangladeshi goods, down from a previous high of 37%.
- Zero Tariffs will be granted to specific volumes of Bangladeshi textiles and apparel made using U.S.-produced cotton or man-made fiber.
- Bangladesh will immediately grant duty-free access to 4,922 U.S. tariff lines, with more phased out over 5–10 years.
- Market Access for U.S. Goods: Bangladesh will open its markets to U.S. industrial and agricultural products, including beef, poultry, dairy, medical devices, chemicals, and motor vehicles.
- Major Purchase Commitments:
- Energy: Bangladesh committed to buying $15 billion in U.S. energy products over 15 years.
- Agriculture: A commitment to purchase $3.5 billion in U.S. agricultural products (wheat, soy, cotton).
- Aviation: Biman Bangladesh Airlines intends to purchase 14 Boeing aircraft.
Regulatory & Security Alignment
- Standards Recognition: Bangladesh will recognize U.S. FDA pharmaceutical standards and U.S. vehicle safety and emission rules to simplify imports.
- Digital Trade: Bangladesh agreed not to impose digital services taxes that discriminate against U.S. companies and will support free cross-border data transfers.
- Geopolitical & Security Clauses:
- Bangladesh agreed not to buy nuclear fuel or reactors from countries that jeopardize U.S. interests.
- If the U.S. enacts border measures for national security, Bangladesh must adopt complementary restrictive measures.
- Cooperation on export controls and anti-corruption measures is required.
Other Historical Bilateral Agreements
- TICFA (2013): The Trade and Investment Cooperation Forum Agreement serves as the primary forum for ongoing trade discussions.
- Taxation (2006): A Bilateral Treaty for the Avoidance of Double Taxation has been in effect since 2007.
- Investment (1989): A Bilateral Investment Treaty (BIT) protects and promotes investments between the two nations.
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