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Bangladesh textile sector seeks duty-free access on US cotton garments

The Bangladesh Textile Mills Association (BTMA) has reached out to the US embassy and the National Cotton Council of America (NCC) with a request to allow duty-free access for Bangladeshi garments made from US cotton.

Jangoulun Singsit April 25 2025

BTMA president Showkat Aziz Russell communicated this appeal through an official correspondence addressed to NCC president and CEO Gary Adams and US embassy in Dhaka political/economic affairs counsellor Eric Geelan.

He also advocated for the permanent exclusion of Bangladesh from the list of nations subjected to extra tariffs by the US, according to local news publication The Daily Star.

These appeals follow the US administration's decision on 9 April to temporarily suspend an additional 37% duty imposed on Bangladesh and 75 other countries for a period of 90 days.

Currently, Bangladesh is subject to a baseline reciprocal duty of 10%.

"We are confident that these measures will significantly boost bilateral trade and further embed US cotton into global supply chains via Bangladesh's growing Ready-Made Garment (RMG) industry. BTMA is committed to prioritising US cotton in a substantial portion of our production, much of which is exported to the US and other global markets," Russell was quoted as saying by the newspaper.

In alignment with these requests, the BTMA pointed to several governmental measures being implemented, such as the creation of a dedicated central depot in Bangladesh for storing US cotton. This initiative is part of a broader strategy to increase the importation of US cotton fourfold.

"Additionally, we are preparing to send an official BTMA delegation to the United States, in collaboration with the National Cotton Council of America, at the earliest possible date.

"This mission, comprising 12–13 representatives, will engage in high-level dialogue and negotiations with key US government and private sector stakeholders to advance our shared goals," Russell added.

The BTMA, which represents 1,856 mills involved in various textile processes including yarn spinning, weaving, dyeing, printing, and finishing operations, emphasised its role as a pivotal contributor to Bangladesh's industrial growth and export performance.

The association further noted that the textile industry has seen an influx of investments surpassing $23bn. It also highlighted that more than 90% of Bangladeshi exports to the US consist of garments which are currently subject to duties exceeding 15%, whereas Bangladesh imposes a nominal 2.2% tariff on imported goods from the US, according to the newspaper.

In the previous year, Bangladesh's imports of US cotton amounted to approximately $270m, accounting for about 12% of its total cotton imports.

Simultaneously, in efforts parallel to those by BTMA chief adviser, commerce adviser Sk Bashir Uddin sent a separate letter to US Trade Representative Jamieson Greer. Uddin proposed that an additional 100 US products receive zero-duty privileges beyond the current roster of 190 items already enjoying such benefits.

Professor Muhammad Yunus, chief adviser for the interim Bangladesh government has also made a direct proposal to US President Donald Trump that lays out a strategic plan for mutual economic progress.

Recently, International Apparel Federation (IAF), which represents global fashion manufacturers welcomed the US administration's decision to temporarily halt tariffs but warned once the pause ends the tariffs could put garment worker livelihoods in the US and abroad at risk.

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