The agreement replaces the previously announced 37% US tariff level for Bangladesh, changing near-term pricing and contract assumptions for Bangladesh’s US-facing garment and footwear exporters. The zero-tariff mechanism ties preferential access to use of US inputs, pushing sourcing decisions toward US cotton and synthetic fibre for qualifying product lines. Bangladesh also committed to preferential market access for US industrial and agricultural goods, expanding US export options into Bangladesh across categories including chemicals, medical devices, machinery, and motor vehicles/parts.