What barriers limit US-Bangladesh trade, and what are the fixes?
Bangladeshi businesses have asked US brands to help bridge the gap either through better garment prices or through trade incentives
Bangladesh's trade relationship with the United States continues to expand, particularly in agricultural commodities such as cotton and soybeans.
However, several barriers are limiting further growth, especially in cotton sourcing.
One of the main challenges is cost.
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Importers say US cotton is around $0.12 per kilogram more expensive than supplies from India or African countries.
Since international apparel buyers do not pay a higher price for garments made with US cotton, Bangladeshi manufacturers cannot justify the additional expense.
Lead time is another issue.
Shipping cotton from the US takes longer, which increases production planning pressures for exporters who operate on tight delivery schedules.
Bangladeshi businesses have asked US brands to help bridge the gap either through better garment prices or through trade incentives.
The proposed Reciprocal Tariff framework was discussed as a possible solution, where Bangladeshi products could receive tariff concessions if at least 20% of their raw materials originate in the US.
However, the required legislation is still pending, and the documentation process remains complex.
Another suggestion raised by experts was the establishment of a dedicated warehouse in Bangladesh stocked with US cotton.
This could significantly reduce lead time and help mitigate cost pressures by allowing mills to buy smaller quantities on demand rather than committing to large shipments.
Overall, while demand for high-quality cotton is rising, cost competitiveness and logistical efficiency remain key obstacles.
Addressing these issues will require coordinated efforts between US suppliers, international brands, and Bangladeshi manufacturers — along with supportive trade policy and supply chain adjustments.
