A Powerful Magnet for Investment: Sk Bashir Uddin Hails US-Bangladesh Trade Deal

Commerce Adviser Sk. Bashir Uddin on Tuesday characterized the newly signed Agreement on Reciprocal Trade (ART) with the United States as a landmark achievement that will serve as a "powerful magnet" for foreign direct investment. 

Speaking at a press conference at the Ministry of Commerce on Tuesday, the adviser highlighted that the deal cements Bangladesh’s role as a key strategic partner in the Indo-Pacific region and marks a transformative shift in the nation's economic trajectory.

The agreement, formally signed on Monday night, follows nine months of intensive negotiations that began after the US imposed reciprocal tariffs in April 2025. 

Through persistent diplomatic engagement, Bangladesh successfully negotiated a reduction of the reciprocal tariff rate to 19 percent. 

Sk. Bashir Uddin described the ART as a cornerstone of the interim government’s modernization strategy, stating, “Framed as a balanced, strategic, and forward-looking document, the agreement is designed to catalyze Bangladesh’s integration into global value chains (GVCs). By establishing a predictable and transparent trade environment, the framework seeks to attract high-value foreign direct investment (FDI) and enhance trade facilitation.”

The comprehensive framework covers diverse thematic areas, ranging from digital trade and intellectual property to labor and environmental standards. 

Notably, the agreement includes a unique provision for the textile and apparel sector. 

Under this mechanism, a specified volume of Bangladeshi garment exports will be eligible for a zero reciprocal tariff rate, provided they utilize US-produced inputs like cotton and man-made fibers. 

“This provision is unique and not included in similar US agreements with other countries. To fully benefit from this provision, Bangladesh will need to strengthen its backward linkage and raw material supply in the textile sector,” the adviser noted.

Beyond apparel, the ART offers duty-free market access for selected pharmaceutical and agricultural products, supporting the government's goal of diversifying the export basket. 

Bangladesh also secured significant flexibility in digital trade, maintaining the right to enter third-party agreements without prior US consultation. 

The adviser emphasized that the agreement protects national interests through staged tariff reductions over five to ten years and a termination clause included at Bangladesh's initiative.