Bangladesh, US join hands to boost collaboration on American cotton use in apparel exports
Under the recent US executive order, Bangladeshi apparel exports to the United States are eligible for a proportional waiver on new additional duties if they contain a minimum of 20% US-origin raw materials (such as cotton)
Bangladesh's apparel industry and a high-level delegation of US cotton exporters have agreed to enhance cooperation to leverage a new American executive order that offers proportional tariff concessions for garments made with US raw materials.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Cotton USA delegation agreed on the issue during a meeting held at BGMEA Complex in Uttara today (November 4).
The meeting focused on utilising the newly announced US tariff facility to expand bilateral trade and significantly increase the use of American cotton in Bangladesh's textile sector.
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Under the recent US executive order, Bangladeshi apparel exports to the United States are eligible for a proportional waiver on new additional duties if they contain a minimum of 20% US-origin raw materials (such as cotton).
BGMEA President Mahmud Hasan Khan welcomed the opportunity, stating, "This new tariff concession creates enormous opportunities for our industry, as it will make our products more competitive in the global market."
However, Hasan noted that BGMEA is yet to receive clear guidelines on the procedural steps for local spinners and garment factories to claim this benefit.
He urged the US delegation to swiftly secure the necessary clarification from the US administration, enabling entrepreneurs to immediately prepare to utilize the advantage.
Currently, approximately 10% of Bangladesh's imported cotton originates from the United States. The BGMEA President expressed confidence that this share could be doubled or even tripled with a change in mindset and a strategic approach.
He proposed joint research and knowledge-sharing initiatives to inform spinners and manufacturers about the superior quality and comparative advantages of American cotton, thereby encouraging a higher volume of imports. The US delegation welcomed the proposal and committed to collaboration on this front.
Logistics and documentation hurdles
The discussions also highlighted challenges in the trade flow, with the US delegation citing obstacles and complexities in preparing commercial documentation for cotton exports to Bangladesh. They requested BGMEA's assistance in resolving these issues.
In response, the BGMEA President asked the US representatives to provide specific details in writing, assuring them that BGMEA would promptly escalate the matter to the Ministry of Commerce to ensure a swift resolution of the complications.
Representatives from Cotton Council International emphasised that the US cotton, known for its sustainability, reliability, and high quality, is perfectly positioned to help Bangladeshi exporters enhance product quality and maximize the new tariff advantage in the US market.
