India · Bangladesh · USA
US sets 19% tariff for Bangladesh
Change
The United States and Bangladesh signed a trade agreement that sets a 19 percent US tariff on Bangladeshi imports and creates zero-tariff exemptions for certain textiles and garments using US-produced cotton and man-made fibre.
Why it matters
The pact fixes a 19 percent tariff rate on affected Bangladeshi imports into the United States. It establishes a mechanism under which certain textile and apparel goods from Bangladesh that use US-produced cotton and man-made fibre receive zero reciprocal tariff in the US market. Bangladesh grants preferential market access for specified US industrial and agricultural goods, including chemicals, medical devices, machinery, motor vehicles and parts, and soy. The arrangement places Bangladesh near parity with India, where the tariff rate has been set at 18 percent after earlier higher rates.
Implications
- — Bangladeshi apparel and footwear exporters face a 19% US tariff on shipments that do not meet the US-origin fibre exemption criteria.
- — Qualification for the zero-tariff pathway depends on documented use of US-produced cotton or man-made fibre.
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Source
View on Al Jazeera