Monday, August 31, 2026

Bangladesh opens dairy, beef, poultry market to US: Key terms of the trade agreement

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Bangladesh opens agriculture and industrial sectors to US companies | Bangladesh will provide preferential market access to a wide range of US agricultural and industrial goods under the new reciprocal trade agreement, according to the White House. These include dairy, beef, poultry, soy products, fruits and nuts, chemicals, medical devices, machinery, auto parts, ICT equipment and energy products. The move significantly opens Bangladesh’s farm sector to American exporters, particularly in dairy and meat. (Image: Canva)

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US cuts reciprocal tariff to 19% | The United States will reduce its reciprocal tariff rate on Bangladeshi goods to 19%. Additionally, certain products identified under a separate US executive order will qualify for a 0% reciprocal tariff rate. (Image: Canva)

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Zero-tariff mechanism for Bangladesh textiles | A special mechanism will be created to allow certain textile and apparel goods from Bangladesh to enter the US at zero reciprocal tariffs. However, this will apply to a specified volume of imports. The volume will be linked to Bangladesh’s purchase of US textile inputs such as cotton and man-made fibre. (Image: Canva)

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Addressing non-tariff barriers | Both countries have agreed to tackle non-tariff barriers affecting trade and investment. Bangladesh will accept vehicles built to US federal safety and emissions standards, recognise US FDA certifications for medical devices and pharmaceuticals, and remove import restrictions or licensing requirements on US remanufactured goods. and man-made fibre. (Image: Canva)

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Digital trade and customs reforms | Bangladesh has committed to allowing free cross-border data flows, supporting a permanent WTO moratorium on customs duties for electronic transmissions, digitalising customs procedures, following science-based standards for food and agricultural imports, removing barriers in the insurance market, and implementing good regulatory practices. (Image: Canva)

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Labour and environmental commitments | The agreement includes commitments on labour and environmental standards. Bangladesh will ban the import of goods made with forced or compulsory labour, amend labour laws to protect freedom of association and collective bargaining, strengthen enforcement of labour regulations, and maintain and enforce high environmental protection standards. (Image: Canva)

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Stronger intellectual property protection | Bangladesh will adopt stronger intellectual property protection measures, including implementing certain international treaties. The agreement also includes provisions on geographical indications aimed at protecting US market access, especially for American cheese and meat producers. (Image: Canva)

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Anti-corruption and state enterprise reforms | Bangladesh has committed to strengthening and enforcing anti-corruption laws, improving trade facilitation, and addressing distortions caused by subsidies and state-owned enterprises. (Image: Canva)

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Supply chain and security cooperation | Both sides agreed to enhance economic and national security cooperation. This includes addressing unfair trade practices, combating duty evasion, coordinating on export controls, and sharing information on inbound investments. (Image: Canva)

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Major commercial deals in pipeline | The joint statement also noted ongoing and upcoming commercial transactions, including aircraft procurement, around $3.5 billion worth of US agricultural purchases, including wheat, soy, cotton and corn, and energy purchases estimated at $15 billion over 15 years. The agreement will now move towards finalisation in line with domestic procedures in both countries before it enters into force. (Image: Canva)

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