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U.S. and Bangladesh finalize trade deal cutting tariffs on goods, boosting Bangladeshi textiles while raising concerns in India.
The U.S. and Bangladesh have finalized a trade agreement reducing Bangladesh’s tariff on U.S. goods to 19% and granting zero tariffs on garments made with U.S. cotton or man-made fibers, boosting Bangladeshi textile exports to the U.S.
The deal, effective immediately, gives Bangladesh a competitive edge despite India’s lower 18% tariff, raising concerns in India’s textile sector over lost market share and reduced demand for Indian cotton.
While Indian exporters expect limited impact due to higher U.S. cotton costs and logistical challenges, stock prices in India declined and political criticism grew.
The agreement also includes provisions for U.S. agricultural and energy exports to Bangladesh, and data policy changes, highlighting shifting trade dynamics in South Asia.
Estados Unidos y Bangladesh finalizan un acuerdo comercial que reduce los aranceles a los bienes, impulsando los textiles de Bangladesh y generando preocupaciones en India.