U.S.-Bangladesh trade agreement a cause of concern for Indian apparel exporters

The United States-Bangladesh Agreement on Reciprocal Trade has raised concerns among Indian textile and apparel exporters, who had hoped to gain a competitive advantage over Bangladesh due to the 19% tariff on Indian goods in the United States as a result of the interim trade agreement between India and America

According to the US-Bangladesh Reciprocal Trade Agreement, "The United States commits to establishing a mechanism that will allow certain textile and apparel goods from Bangladesh to receive a zero reciprocal tariff rate." 

This mechanism will allow a to-be-specified volume of textile and apparel exports from Bangladesh to enter the United States at this reduced tariff rate, but this volume will be determined in relation to the quantity of textile exports from the US, such as U.S.-produced cotton and MMF textile inputs.

Source: www.thehindu.com