The United States and the People’s Republic of Bangladesh have agreed to an Agreement on Reciprocal Trade designed to strengthen bilateral economic relations and expand market access for American exporters.

The Agreement, announced on Monday, February 9, builds on the 2013 U.S.-Bangladesh Trade and Investment Cooperation Forum Agreement (TICFA) and introduces significant new commitments across goods trade, regulatory standards, labor protections and economic security cooperation.

Bangladesh will provide substantial preferential market access for U.S. industrial and agricultural exports. Covered sectors include chemicals, medical devices, machinery, motor vehicles and parts, ICT equipment, energy products, soy products, dairy, beef, poultry and tree nuts and fruit.

In exchange, the U.S. will reduce the reciprocal tariff rate on Bangladeshi-origin goods to 19%, as initially established under Executive Order 14257 of April 2, 2025. The U.S. will also designate certain products under Annex III of Executive Order 14346 of September 5, 2025, to receive a zero percent reciprocal tariff rate.

The Agreement establishes a new mechanism for textile and apparel imports from Bangladesh. A to-be-specified volume of qualifying apparel and textile goods will be eligible for a zero reciprocal tariff rate. The volume will be linked to U.S. exports of textile inputs, such as cotton and man-made fibers, supporting American producers of raw materials.

Bangladesh also commits to addressing non-tariff barriers by accepting vehicles built to U.S. federal safety and emissions standards, recognizing U.S. Food and Drug Administration certifications for medical devices and pharmaceuticals, and removing restrictions on U.S. remanufactured goods and parts.

The deal includes commitments from Bangladesh to permit cross-border data flows, support a permanent WTO moratorium on customs duties on electronic transmissions, digitalize customs procedures, remove insurance market barriers, and adopt science- and risk-based processes for agricultural imports.

Labor and environmental standards are central to the Agreement. Bangladesh commits to prohibiting imports of goods produced by forced or compulsory labor, strengthening freedom of association and collective bargaining rights, enforcing labor laws and maintaining high levels of environmental protection.

The Agreement also includes robust intellectual property protections, including ratification or implementation of certain international IP treaties and provisions on geographical indications aimed at preserving U.S. market access, particularly for American cheese and meat producers using common names.

Both countries pledged closer cooperation on supply chain resilience, export controls, duty evasion and information-sharing on inbound investment to address unfair trade practices globally.

The Agreement acknowledges recent and forthcoming commercial transactions, including aircraft procurement, approximately $3.5 billion in U.S. agricultural exports such as wheat, soy, cotton and corn, and energy purchases estimated at $15 billion over 15 years.

U.S. institutions, including the Export-Import Bank and the U.S. International Development Finance Corporation, will consider supporting investment financing in critical sectors in Bangladesh, consistent with applicable law.

The two governments stated they will finalize the Agreement promptly and undertake required domestic procedures before it enters into force.