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SUNDAY, JUNE 08, 2025
BTMA calls for zero-tariff entry to US market for apparel made with US cotton

Bangladesh

TBS Report
22 April, 2025, 09:50 pm
Last modified: 22 April, 2025, 09:53 pm

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BTMA calls for zero-tariff entry to US market for apparel made with US cotton

At the same time, the textile millers’ association called for permanent waiver of the additional 37% duty on Bangladeshi exports to the US

TBS Report
22 April, 2025, 09:50 pm
Last modified: 22 April, 2025, 09:53 pm
BTMA calls for zero-tariff entry to US market for apparel made with US cotton

The Bangladesh Textile Mills Association (BTMA) has urged the National Cotton Council of America (NCCA) to support Bangladesh in negotiating duty-free (0% tariff) access to the US market for RMG products manufactured using US cotton.

At the same time, the textile millers' association called for permanent waiver of the additional 37% duty on exports to the United States to help expand US cotton exports to Bangladesh.

In a letter to NCCA President and CEO Gary Adams on 19 April, BTMA President Showkat Aziz Russell made these requests.

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BTMA also sent copies of the letter to Eric Geelan, counselor at the US Embassy in Dhaka, as part of its broader advocacy efforts. The Business Standard obtained copies of the letters.

The letter comes after the US administration's 9 April announcement to temporarily suspend the additional 37% duty for 90 days for Bangladesh and 75 other countries. During this grace period, a baseline reciprocal duty of 10% has been introduced, meaning Bangladesh currently faces a total 26% duty on exports to the US. 

In the letter, Russell said the 90-day window presents a "critical opportunity for strategic diplomacy and negotiation", and called for Bangladesh's permanent removal from the list of countries facing the extra duty.

On Bangladesh's side, he added, the government is also taking steps to strengthen trade ties with the US. The chief adviser of the interim government has submitted comprehensive proposals directly to US President Donald Trump, and a BTMA delegation is scheduled to visit the US for high-level dialogue with government and private stakeholders. 

This mission, comprising 12-13 BTMA representatives, will focus on high-level dialogue and negotiations with key US government and private sector stakeholders to advance the goals outlined above, reads the BTMA letter.

The BTMA president said the association represents 1,856 member mills involved in yarn and fabric production, dyeing, printing, and finishing, with total investment reaching $23 billion. 

BTMA also hoped for a strong partnership with the US, noting that in 2024, Bangladesh imported about $270 million worth of US cotton—roughly 12% of its total cotton imports. 

"This figure has the potential to grow four to five times in the coming years," Russell said.

The BTMA is also preparing to establish a dedicated central warehouse in Bangladesh exclusively for US cotton, demonstrating its commitment to increasing the use of American cotton in its production. Much of this production, he said, is exported to the US and other global markets. 

Bangladesh Textile Mills Association (BTMA) / US cotton / Duty-free access / Bangladesh-US

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