US and Bangladesh agree trade deal

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Along with a reduced tariff for most exports, clothes made in the South Asian country with American cotton will get a duty waiver

The US and Bangladesh have agreed a trade deal that allows reduced tariffs for most of the South Asian nation’s exports.

The deal provides for a tariff rate of 19% for exports to the US, 1% lower than the 20% set in August, according to reports.

Washington has committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using US-produced cotton and man-made fiber to receive a zero tariff in the US market, Muhammad Yunus, the chief adviser of the interim government, said in a post on X.

Neighboring India finalized a trade agreement with the US earlier this month, which provides an 18% rate, but without a similar concession for apparel exports.

Dhaka will allow preferential market access for US industrial and agricultural goods, and American farm and food products, according to a statement by the White House.

It will also slash tariffs to zero on poultry, pork, seafood, rice, corn, and cereal grains. Tariffs on some US products, including almonds, will be reduced to zero over five or ten years.

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