As part of a new deal announced on Monday, Bangladesh would not have to pay tariffs on some clothing and textiles made with US-sourced materials. As part of the accord, Dhaka will allow more U.S. goods into its markets in exchange for Washington reducing its tariffs on Bangladesh from 20% to 19%.
Bangladesh is the second-largest exporter of clothes in the world, after China. The clothing sector is the backbone of the country. The South Asian country has been in talks with the White House for an extended period since President Donald Trump imposed high tariffs on all of the country’s trading partners in April of last year.
In a joint statement, the White House said the deal would strengthen the countries’ economic ties and provide both sides with unprecedented access to each other’s markets. It added that the US will reduce tariffs on goods from Bangladesh and will allow some clothing and textile products from that country to enter the US duty-free.
The statement claimed that the commodities include items made with American cotton and synthetic fabrics. The amount of these will depend on how much fabric the US sends to Bangladesh. The apparel industry in Bangladesh makes up more than 80% of the country’s total export earnings and employs about four million people.
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