Bangladesh and the United States have agreed on a new trade deal setting Bangladesh's tariff rate at 19 percent. This agreement includes exemptions on certain textiles and garments made with US cotton and man-made fibre. The deal was announced on Monday after nine months of talks. Muhammad Yunus, chief adviser to Bangladesh’s interim government, said, "Washington had committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using US-produced cotton and man-made fibre to receive zero reciprocal tariff in [the] US market." The White House added that Bangladesh will provide preferential market access for US industrial and agricultural goods such as chemicals, medical devices, machinery, motor vehicles, soya products, dairy, beef, poultry, tree nuts, and fruit. Bangladesh will also accept US vehicle safety and emissions standards, recognise FDA certifications, and remove import restrictions on remanufactured goods. Both countries also noted recent commercial deals including aircraft purchases, around $3.5 billion in US agricultural product purchases, and an estimated $15 billion in US energy product purchases over 15 years. Bangladesh had earlier secured a tariff reduction from 37 to 20 percent in August 2024 and now enjoys 19 percent, close to India’s 18 percent tariff rate. The ready-made garments sector is crucial for Bangladesh, covering over 80 percent of exports and employing four million workers. Bangladesh will hold elections on Thursday after being governed by an interim government since August 2024.