By Tanvir Rusmat, Dhaka.
The signing of the “Agreement on Reciprocal Trade” between Bangladesh and the United States has sparked wide discussion in economic and diplomatic circles. Finalized on February 9, 2026, the 32-page agreement encompasses a broad range of commitments covering tariffs, non-tariff barriers, digital trade, labor, environment, investment, and national security–related issues.
Under the agreement, the United States will reduce the 20 percent retaliatory tariff imposed on Bangladeshi goods to 19 percent and grant zero-duty access to certain specified products. In particular, a quota-based zero-tariff arrangement has been outlined for the ready-made garment sector, linked to the volume of cotton and other textile inputs imported from the United States. However, these benefits are subject to specific procedures and conditions, with provisions allowing for the reinstatement of tariffs in case of non-compliance.
On the other hand, Bangladesh has committed to gradually reducing or eliminating tariffs on a wide range of U.S. products and refraining from imposing quotas. The agreement also requires Bangladesh to accept U.S.-certified products in areas such as import licensing, technical standards, and conformity assessment without additional testing. In the agricultural sector, Bangladesh has agreed to recognize U.S. sanitary and phytosanitary certifications, adopt science-based risk assessments, and facilitate market access for biotechnology products.
The commercial component of the agreement notes that Biman Bangladesh Airlines has expressed its intention to purchase 14 Boeing aircraft. Additionally, Bangladesh plans to import approximately $3.5 billion worth of U.S. agricultural products—including wheat, soybeans, cotton, and corn—and an estimated $15 billion in energy products over the next 15 years. The agreement also signals an increase in defense procurement from the United States and indicates certain limitations on purchasing military equipment from specific countries, although those countries are not named in the document.
In the field of digital trade, Bangladesh has agreed to allow cross-border data flows, refrain from imposing customs duties on electronic transmissions, and avoid discriminatory taxation on U.S. technology companies. Provisions for cooperation on export controls, sanctions compliance, and investment-related information exchange are also included. The agreement further emphasizes strengthening cybersecurity measures in ports, logistics, and digital infrastructure.
Commitments to uphold international standards in labor and environmental protection form another key part of the agreement. These include prohibiting the import of goods produced through forced labor, ensuring workers’ rights to organize, and enforcing environmental laws effectively. Bangladesh has also agreed to strengthen intellectual property protection by enhancing enforcement, acceding to relevant international conventions, and reinforcing border-level implementation mechanisms.
The agreement has elicited varied reactions among economists and policymakers. Some view it as an opportunity to expand market access, attract investment, and diversify supply chains. They argue that partial tariff reductions and potential investment support could bolster exports and infrastructure development. Others, however, caution that extensive tariff concessions and the removal of non-tariff barriers may exert pressure on domestic industries, agriculture, and policy autonomy, while also complicating the maintenance of strategic balance with third countries.
Government sources indicate that necessary legislative and policy reforms will be implemented in phases, with measures taken in consultation to safeguard national interests. Observers note that the ultimate impact of the agreement will depend on the effectiveness of its implementation, improvements in export competitiveness, and the careful management of strategic balance in Bangladesh’s broader foreign policy framework.
