Bangladesh's apparel exporters want to work jointly with American cotton exporters to secure proportionate tariff reductions through increased use of US raw materials in garment industry.
A recently announced US executive order allows proportionate tariff relief for apparel made with at least 20-percent American-origin raw materials-apart from the reciprocal Trump tariff regime that eventually lowered the rate for Bangladesh to 20 per cent in a tradeoff.
They expressed their interest in mutually beneficial trade enhancement during a meeting between a high-level delegation of US cotton exporters and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan Tuesday at the BGMEA Complex in Dhaka's Uttara.
The delegation's visit was facilitated by Cotton USA, an initiative of Cotton Council International (CCI), BGMEA said in a news release.
The discussion focused on expanding bilateral trade, promoting the use of US cotton in Bangladesh's textiles sector, and leveraging tariffs.
"This new tariff concession creates enormous opportunities for our industry as it will make our products more competitive on the global market," said BGMEA President Mahmud Hasan Khan.
However, he notes that the BGMEA has yet to receive clear guidelines on how local spinners and garment factories can qualify for the benefit. He urged the delegation to help obtain necessary clarifications from the US administration so that Bangladeshi exporters can begin preparation without delay.
Currently, around 10 per cent of Bangladesh's imported cotton originates from the United States. The BGMEA chief said this share could be doubled or even tripled through proper strategic initiatives and greater awareness about the superior quality and sustainability of US cotton.
He suggests conducting joint research and knowledge-sharing sessions with spinners and factories to highlight the benefits of using American cotton.
Welcoming the proposal, the delegation expressed readiness to work jointly with BGMEA to expand the use of US cotton in Bangladesh.
The delegation included Li Yin (ECOM), Krista Rickman (Cargill), Diego Lozada (LDC), Wesley Rentz (Olam Agri), Wayne Boseman (Carolina Cotton Growers Association), Chris Jones (Staplcotn Cooperative), and Will Bettendorf and Ali Arsalan of the Cotton Council International.
From the BGMEA side, Senior Vice-President Enamul Haque Khan and Director Nafis-ud-Daula joined the discussion.
The US representatives also pointed out certain challenges in trade documentation while exporting cotton to Bangladesh and sought BGMEA's cooperation in resolving these barriers.
In response, the BGMEA president requested the delegation to share the issues in writing so the association could formally raise them with the Ministry of Commerce for necessary action.
The CCI representatives lauded Bangladesh's textile and apparel industry as a key player on the global market, noting that American cotton is globally recognized for its consistency, sustainability, and reliability.
They expressed confidence that by using more US cotton, Bangladeshi manufacturers could enhance product quality and better utilize tariff relief on the US market.
The meeting also explored ways to streamline logistics and infrastructure for US cotton supply in Bangladesh, including the possibility of establishing a dedicated warehouse to reduce lead time.
Both sides agreed to work together to ensure transparency and traceability in measuring US raw-material content under the new tariff policy.
The host side further requested technical cooperation and capacity-building support from US cotton exporters to help improve productivity and reduce waste in local mills. The association also invited collaboration in research activities through the BGMEA Innovation Centre to drive efficiency and sustainability in production.
Both parties reiterated their commitment to strengthening bilateral economic partnership and mutual cooperation in the years ahead.
newsmanjasi@gmail.com
© 2025 - All Rights with The Financial Express
