The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and a delegation of U.S. cotton exporters held a meeting on Tuesday to enhance bilateral trade and promote greater use of U.S. cotton in Bangladesh’s garment industry.
Bangladesh’s garment sector and the U.S. cotton exporters’ delegation have agreed to strengthen collaboration to take advantage of a new U.S. executive order that provides proportional tariff benefits for apparel manufactured from American raw materials.
The meeting focused on leveraging the newly introduced U.S. tariff incentive to boost bilateral trade and significantly raise the use of American cotton in Bangladesh’s textile industry. According to the recent U.S. executive order, Bangladeshi apparel exports to the U.S. can qualify for a proportional exemption from new additional tariffs if they include at least 20% U.S.-sourced raw materials, such as cotton.
BGMEA President Mahmud Hasan Khan welcomed the development, stating, “This new tariff concession creates enormous opportunities for our industry, as it will make our products more competitive in the global market.”
He added that BGMEA has not yet received clear instructions on the procedures and urged the U.S. delegation to promptly obtain the necessary clarifications from the U.S. administration to obtain the tariff exemption.
Representatives from Cotton Council International emphasized that Bangladesh’s textile and apparel sector plays a key role in the global market, while noting that U.S. cotton is widely acclaimed for its sustainability, dependability, and high quality.
Hasan Khan affirmed that U.S. cotton imports could increase significantly through focused strategies. At present, roughly 10% of Bangladesh’s cotton imports are sourced from the United States.
Meanwhile, the delegation conveyed its willingness to collaborate with BGMEA to increase the use of U.S. cotton in Bangladesh. The discussion also addressed trade-related challenges, with the U.S. delegation pointing out difficulties and complexities in preparing commercial documentation for cotton exports to Bangladesh.
Additionally, both parties agreed to cooperate to ensure transparency and accurate tracking of U.S. raw materials under the new tariff framework. The association invited joint participation in research initiatives through the BGMEA Innovation Centre to enhance efficiency and sustainability in production.
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