Bangladesh Opens Dairy, Beef And Poultry Sectors To US Under New Trade Deal

Last Updated:February 10, 2026, 14:31 IST

Deal offered much-needed relief to Bangladesh’s apparel exporters as the RMG sector accounts for more than 80 per cent of its export earnings and employs some 4 million workers.

The United States has signed a trade agreement with Bangladesh, lowering tariffs to 19 per cent in exchange for expanded access for American products across key sectors such as dairy, beef, and poultry.

Under the deal, US-made cars, motorcycles, motor vehicles and parts, medical devices, machinery, ICT equipment, energy products, and soy-based goods will receive significant preferential market access in Bangladesh.

In return, Bangladesh’s main export earner — ready-made garments (RMG) made from cotton and synthetic fibres sourced from the US — will enjoy zero reciprocal duty. However, the export volume will be linked to the quantity of US textile inputs, including cotton and man-made fibres, imported by Bangladesh.

Officials from Bangladesh’s Commerce Ministry said the agreement also covers imports of US wheat, soybean, and LNG, a commitment to avoid tariffs on e-commerce, adherence to US-mandated intellectual property rights standards, and support for US-backed reforms of the World Trade Organisation (WTO).

As part of the pact, Bangladesh has committed to protecting internationally recognised labour rights. This includes banning imports of goods produced through forced labour, amending labour laws to guarantee freedom of association and collective bargaining, and strengthening enforcement of labour regulations.

The US will explore investment financing in Bangladesh’s critical sectors through institutions such as the Export-Import Bank of the United States (EXIM Bank) and the US Development Finance Corporation (DFC), subject to eligibility and applicable laws, in collaboration with American private sector partners.

Additionally, Bangladesh has agreed to purchase approximately $3.5 billion worth of US agricultural products, including wheat, soy, cotton, and corn, along with energy imports valued at around $15 billion over 15 years, and aircraft procurement.

As part of broader efforts to ease US tariffs, Bangladesh has recently agreed to buy 25 aircraft from Boeing, in a deal estimated at Tk 30,000–35,000 crore.

According to Bangladesh’s Export Promotion Bureau (EPB), the US remains Bangladesh’s largest export market.

The South Asian nation in August last year secured a reduction in US tariffs on its exports to 20 per cent, down from 37 per cent initially proposed by Washington. However, Bangladeshi policymakers earlier said they expected the tariff could be brought down to 15 per cent.

Business analysts, however, said the deal offered much-needed relief to Bangladesh’s apparel exporters as the ready-made garments sector accounts for more than 80 per cent of its export earnings and employs some 4 million workers, mostly women, and contributes about 10 per cent to gross domestic product (GDP).

The development comes as Bangladesh heads for the February 12 general election to choose new leadership and bring an end to the 18-month Yunus-led interim regime, which took charge after the fall of Sheikh Hasina’s Awami League government following a violent student-led street campaign dubbed the July Uprising.

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