Deal between America and Bangladesh
After the India-US trade deal, Bangladesh has also signed an important trade agreement with America. Last Monday, a deal was struck between the two countries regarding tariffs. Under this, America has reduced the tariff on some textile products of Bangladesh from 20% to 19%. This will provide relief to the textile sector of Bangladesh. At the same time, Bangladesh has opened its food and agriculture market to America in return. Let us understand this deal in simple language.
Before the general elections, the head of the interim government of Bangladesh, Mohammad Yunus, has created a stir in political circles by making this deal with America. Under this agreement, Bangladesh has imposed zero percent tariff on cotton coming from America. That means, if Bangladesh buys cotton from America and makes readymade shirts, then no tax will be levied on that cotton.
The most special thing about the deal is that not only cotton, but shirts and other textile products made from American cotton will also get duty-free entry in America. This is being considered a big victory for Bangladesh, because this will make the competition more tough for countries like India, Pakistan and Vietnam. Mohammad Yunus has described this deal as a historic step towards stabilizing the country’s economy and saving millions of jobs.
Textile sector will get direct benefit
About 80% of Bangladesh’s total exports come from the textile sector. Till now Bangladesh had to depend on India and China for fabric and cotton. But after this new deal, when cotton will be available from America without tax and there will be no duty on the clothes made from it in America, then the cost of Bangladesh will reduce and the profit will increase.
Tough competition from India and Vietnam, what will be the effect?
This agreement has come at a time when India-US trade deal has also been signed recently. India has received 18% tariff in the US, while Bangladesh is at 19%. However, the condition of zero tariff on American cotton can give Bangladesh an edge over Vietnam and Pakistan. Experts believe that this deal just before the elections is a diplomatic success of the Mohammad Yunus government, through which an attempt has been made to give the message of stability in the country. However, it remains to be seen how much impact this economic relief will have on voters in the February 12 elections.
Bangladesh market opened for America
In this deal, Bangladesh has also opened its dairy and agriculture market to America. American farmers will benefit greatly from this. According to the White House, Bangladesh has agreed to provide preferential market access to American industrial and agricultural products.
United States Trade Representative tweets, “The US-Bangladesh Agreement on Reciprocal Trade is creating new opportunities for American farmers and producers, expanding market access on US exports ranging from soybeans and corn to civil aircraft and motor vehicles.” pic.twitter.com/UzcWvD44Oz
— ANI (@ANI) February 10, 2026
These include chemicals, medical devices, machinery, motor vehicles and their parts, soy products, dairy products, beef, poultry, nuts and fruits. Apart from this, both the countries have also agreed on deals like purchase of aircraft, American agricultural products worth about $3.5 billion and American energy products worth about $15 billion in the next 15 years.
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