BGMEA, AmCham Bangladesh welcome reciprocal tariff agreement with US

The agreement was signed after nine months of negotiations.

Garments manufactured in Bangladesh using cotton and man-made fibres imported from the United States will be exempt from such tariffs and that will improve Bangladesh’s market access to the United States, BGMEA noted.

It, however, emphasised that proper evaluation and traceability mechanisms must be ensured to fully benefit from the provision allowing the use of US-origin raw materials.

The trade body observed that while US cotton is of better quality, it is relatively expensive as well. If local spinning mills can ensure competitively priced yarn, the agreement could create substantial opportunities for export growth, it added.

The deal reflects constructive engagement between two longstanding economic partners and sends a positive signal to global investors amid heightened uncertainty in international trade, an AmCham statement said.

The provision that allows zero-tariff access for certain products manufactured with US inputs has the potential to encourage deeper supply-chain integration, promote value addition and strengthen backward linkages between US producers and Bangladeshi manufacturers, it added.

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