Bangladesh and the United States on Monday signed an Agreement on Reciprocal Tariff, marking a significant step forward in strengthening bilateral trade and economic relations between the two countries.

The agreement was signed by Commerce Adviser Sheikh Bashir Uddin and National Security Adviser Khalilur Rahman on behalf of Bangladesh, while US Trade Representative Ambassador Jamieson Greer signed for the United States. The negotiations leading to the deal spanned more than nine months, beginning in April last year.

Ambassador Greer praised Chief Adviser Professor Muhammad Yunus for his overarching leadership throughout the negotiation process and commended the Bangladesh negotiating team for its “incredible efforts.” He said the agreement would align Bangladesh more closely with US trade policy.

Following the signing, Commerce Adviser Sheikh Bashir Uddin, who led the Bangladesh delegation in the talks, said the agreement marked a historic new phase in bilateral economic and trade relations. He noted that it would provide substantially enhanced access for both Bangladesh and the United States to each other’s markets.

Under the agreement, the US will further reduce the reciprocal tariff on Bangladeshi goods to 19 percent, down from the original 37 percent and the revised 20 percent set in August last year. In addition, the US has committed to establishing a mechanism allowing certain textile and apparel products from Bangladesh—made using US-produced cotton and man-made fibre—to enjoy zero reciprocal tariff in the US market.

National Security Adviser Khalilur Rahman, who served as Bangladesh’s chief negotiator, said the tariff reduction would give Bangladeshi exporters a stronger competitive edge. He added that zero reciprocal tariff on specific textile and apparel exports using US inputs would provide a significant boost to the country’s readymade garments sector.

The agreement was approved by the Council of Advisers on Monday and will come into effect once formal notifications are issued by both sides.

Bangladesh Commerce Secretary Mahbubur Rahman and Assistant US Trade Representative Brendan Lynch were also present at the signing ceremony.