The U.S. and Bangladesh signed Feb. 9 a trade agreement that includes the elements listed below. The two sides said they will work to “promptly finalize” the agreement and undertake domestic formalities in advance of it entering into force.
Tariffs
The U.S. will cap its “reciprocal” tariff on imports from Bangladesh at 19 percent (down from 20 percent) and set that tariff at zero for products not readily available or produced in the U.S. that have yet to be identified.
Bangladesh will provide “significant preferential market access” for U.S. industrial and agricultural goods, including chemicals, medical devices, machinery, motor vehicles and parts, information and communication technology equipment, energy products, soy products, dairy products, beef, poultry, and tree nuts and fruit. This will include eliminating import duties on some products as well as cutting others by half immediately and then eliminating them entirely over time.
Textiles and Apparel
The U.S. will establish a tariff-rate quota allowing imports of a to-be-specified volume of textile and apparel imports from Bangladesh at a zero reciprocal tariff rate. The in-quota amount will be determined in relation to the quantity of exports of textiles (e.g., U.S.-produced cotton and manmade fiber textile inputs) from the U.S.
Other
Bangladesh also commits to:
- take specified measures to improve customs and trade facilitation, including implementing and maintaining by 2030 technology solutions that allow for full pre-arrival processing, paperless trade, and digitized procedures for the movement of U.S. goods across its borders;
- consistent with its own laws and regulations, adopt or maintain measures to support any U.S. border measures or other trade actions to protect U.S. economic or national security;
- adopt and implement measures to address practices of companies owned or controlled by third countries operating in Bangladesh that result in exports (or increased exports) of below-market price goods to the U.S. or a reduction in U.S. exports to Bangladesh or third-country markets;
- not impose value-added taxes that discriminate against U.S. companies in law or in fact;
- establish measures to restrict unauthorized exports of U.S.-origin or U.S.-controlled items subject to the Export Administration Regulations;
- develop domestic export control systems and enforcement mechanisms, strengthen its auditing and investigative capabilities, and partner with the U.S. on export enforcement actions where appropriate;
- conclude a duty evasion cooperation agreement with the U.S.;
- remove any import restrictions or licensing requirements on U.S. remanufactured goods or their parts;
- adopt and implement a prohibition on the importation of goods produced by forced or compulsory labor and strengthen enforcement of its labor laws;
- accept vehicles built to U.S. federal motor vehicle safety and emissions standards and accept Food and Drug Administration certificates and prior marketing authorizations for medical devices and pharmaceuticals;
- take a number of specified actions to ease restrictions on imports of U.S. food and agricultural products;
- permit the free transfer of data across trusted borders and support the adoption of a permanent moratorium on customs duties on electronic transmissions at the World Trade Organization;
- address distortions caused by subsidies and state-owned enterprises;
- ratify or accede to and fully implement certain international intellectual property treaties; and
- strengthen and enforce comprehensive anti-corruption laws.
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