Key provisions of the agreement
The main agreement contains six articles, while details on its implementation are outlined in annexes, which are considered integral parts of the agreement.
The first article addresses tariffs and quotas. It states that Bangladesh shall impose fixed tariffs on US products, shall not apply quotas on them, and that the United States shall also impose tariffs on Bangladeshi goods at specified rates.
The section on non-tariff barriers includes 11 clauses. Its core principle is that Bangladesh cannot impose regulations, such as documentation requirements, permits, inspections, quality checks, or licensing, that would hinder trade beyond tariffs.
For example, Bangladesh shall not require import licenses for US goods; products that comply with US or international standards shall be allowed entry; and if certification is provided by recognised government or international laboratories, Bangladesh cannot impose additional conditions.
The agreement also includes provisions granting priority access for US agricultural products in the Bangladeshi market. However, if imports need to be restricted for health or safety reasons, such measures must be science-based and risk-based, and not intended to restrict trade.
Bangladesh cannot adopt standards that would put US goods at a competitive disadvantage compared to other countries. Transparency and fairness must also be ensured in granting Geographical Indication (GI) protection or recognition.
The next section refers specifically to cheese and meat products, stating that Bangladesh cannot restrict US products from entering the market solely based on the use of certain names.
Bangladesh is required to ensure strong protection of intellectual property rights. It must take civil, criminal, and border measures to prevent violations, including in the online sphere. Effective enforcement against copyright and trademark infringement must be prioritised.
Regarding the services sector, Bangladesh cannot adopt regulations that would place US service providers at a disadvantage compared to domestic or other foreign entities. Trade-related regulations must be transparent, and no rules can be imposed abruptly without prior consultation.
The following section deals with labour. It states that goods produced through forced labour cannot be imported, including those involving child labour, bonded labour, or coercion. Environmental protection measures must also be adopted and maintained.
The subsequent clause addresses border measures and taxation. If the United States adopts regulations at its borders to protect its workers and businesses, Bangladesh must align with those measures.
If the United States provides tax exemptions or rebates to its exporters, Bangladesh shall not oppose them, even at the World Trade Organization.
Bangladesh cannot impose value-added tax (VAT) in a way that discriminates against US companies. By 2030, Bangladesh must digitise its customs clearance processes for US goods at the border.
