Bangladesh and the US have begun discussions on a potential Free Trade Agreement (FTA), with a focus on enhancing trade and investment.
A Bangladeshi delegation recently met with officials from the Office of the US Trade Representative (USTR) to explore ways to deepen economic ties, including the possible removal of tariffs imposed by the Trump administration.
Bangladesh proposed the FTA as part of a broader strategy to boost exports, particularly in the readymade garments (RMG) sector.
The Commerce Secretary confirmed that a committee has been set up to prepare a draft agreement.
The US remains the leading destination for Bangladeshi exports, receiving 17.09% of overall shipments and over 18% of its apparel exports. Data from the Ministry of Commerce shows that roughly a quarter of Bangladesh’s woven garments, 11.71% of knitwear, and 16.12% of home textiles are sold to the US market.
However, RMG industry leaders are concerned about growing competition. Key rivals like Vietnam and India actively pursue trade deals with the US. Vietnam, in particular, enjoys a preferential tariff rate of around 7% on apparel exports, while Bangladeshi garments still face duties exceeding 15%, placing them at a competitive disadvantage.
