Bangladesh has won a key trade deal with the US, securing tariff exemptions on certain clothes made with American materials. On Monday, the US announced it will cut tariffs on Bangladeshi garments from 20% to 19%. This move is part of an agreement where Bangladesh agrees to open its markets wider to US products. The new deal benefits Bangladesh's huge clothing sector, which is the backbone of its economy and the second largest apparel exporter after China. The US will allow some Bangladeshi clothing and textile goods to enter without tariffs, but only if they use US cotton or man-made textiles. The amount allowed will depend on US exports to the country. In return, Bangladesh will give ‘‘significant preferential market access’’ to several American products. These include chemicals, medical devices, car parts, soy products, and meat. Dhaka will also recognize US safety and emission standards, easing US goods' entry. The White House called this agreement one that will strengthen economic ties and provide ‘‘unprecedented access’’ to both markets. Bangladesh has also agreed to uphold international labour rights, enhance environmental protection, and commit to buying billions of dollars in US agriculture, aircraft, and energy products. This trade deal comes just before Bangladesh's general elections on Thursday. The country has been under an interim government since 2024, following political unrest and the former Prime Minister’s departure. The US tariff cut puts Bangladesh almost on par with India, whose tariffs stand at 18%. Both countries compete heavily in exporting clothes, footwear, and agricultural goods to the US. Previously, India faced a 25% tariff and Bangladesh an even higher 37% before these adjustments.