United States & Bangladesh Agreement on Reciprocal Trade

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Feb. 10, 2026
By: Pietro N. Bianchi

On February 9, 2026, the U.S. and Bangladesh reached an Agreement on “Reciprocal Trade,” summarized in this Fact Sheet released by the United States. The U.S. agreed to reduce the International Emergency Economic Powers Act (“IEEPA”) trade deficit tariff rate on Bangladeshi goods from 20 percent to “no higher than 19 percent.” The Trump administration has been providing accumulated rates in recent trade agreements consisting of most favored nation or “normal” tariffs and IEEPA Trade Deficit tariffs. It is not yet clear whether the 19% rate on Bangladeshi goods is accumulated or merely a percentage point decrease. The U.S. further agreed to allow certain Bangladeshi pharmaceutical and aerospace goods to enter free of IEEPA tariffs.

A Joint Statement of the U.S. and Bangladesh announced a U.S. commitment to permit an unknown but specific volume of Bangladeshi textile and apparel goods made with U.S. produced cotton and man-made fiber inputs to enter free of IEEPA tariffs. While currently undetermined, this commitment is likely the most important point for Bangladesh because textile and apparel manufacturing is a significant part of Bangladesh’s economy.

Bangladesh’s commitments are too numerous to discuss in detail——the Agreement says “Bangladesh Shall” 135 times. In summary, Bangladesh “shall” purchase:

·         14 Boeing aircraft;

·         $15 billion in U.S. energy products, including liquified natural gas, over 15 years;

·         700,000 metric tons of wheat per year for five years;

·         $1.25 billion or 2.6 million metric tons over one year;

·         $3.5 million of cotton; and

·         U.S. Military Equipment.

Bangladesh further agreed to remove non-tariff trade barriers by:

·         Accepting vehicles built to U.S. Emissions and Federal Motor Vehicle Safety standards;

·         Accepting certain U.S. FDA certificates and authorizations;

·         Accepting U.S. regulatory certificates on food and agricultural products;

·         Recognizing sanitary and phytosanitary measures of the U.S. and removing others; and

·         Removing import restrictions and licensing requirement on U.S. remanufactured goods or their parts.

Bangladesh also agreed to a variety civil and administrative improvements.

Notably, Bangladesh agreed not to enter into a digital trade agreement or buy certain nuclear products from a “country that jeopardizes essential U.S. interests.” Bangladesh also agreed to a greater alignment with the U.S. in the WTO by: (1) not contesting measures adopted by the U.S.; and (2) supporting a multilateral adoption of a permanent moratorium on customs duties on electronic transmissions.

We at Barnes Richardson, & Colburn LLP will keep you updated on the United States’ and Bangladesh’s implementation of this agreement and of developments in other trade agreements and IEEPA tariffs.