Bangladesh’s ready-made garment (RMG) industry could see a significant expansion in exports to the United States after a landmark Agreement on Reciprocal Tariff (ART) was signed on 9th February 2026, industry leaders say. The accord is expected to reshape bilateral trade and inject new momentum into the country’s largest export sector.
Under the agreement, the United States has lowered the reciprocal tariff on Bangladeshi apparel exports to 19%, down from the previously negotiated 20% following almost nine months of negotiation. Crucially, the deal allows zero reciprocal tariffs on certain textile and apparel products manufactured in Bangladesh using cotton or man-made fibre sourced from the United States, presenting a major incentive for local manufacturers.
Business leaders believe the ART could elevate Bangladesh’s RMG exports to the United States from US US $ 10 billion currently to US $ 15 billion within two to three years, while also attracting higher levels of foreign direct investment.
Industry insiders stressed the importance of early implementation of the zero-duty provisions for products incorporating US-sourced cotton. They also noted that the development of the Matarbari deep-sea port and the Bay Terminal could lower the cost of importing cotton from the United States, further improving Bangladesh’s competitive position in global markets.
Kutubuddin Ahmed, founder and chairman of Envoy Textiles Ltd and former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), described the reduction in reciprocal tariffs and zero-duty access as encouraging. He observed that US cotton was slightly more expensive than alternatives but said the benefits of the tariff arrangement were likely to boost production capacity among local spinning mills and enhance competitiveness in the US market.
Mohiuddin Rubel, additional managing director of Denim Expert Ltd, noted that exporters stood to gain more from the zero-duty access tied to US cotton usage than from the modest 1% tariff reduction on other products. Commerce Adviser Sk Bashir Uddin stated that approximately 85–86% of Bangladeshi exports to the United States would qualify for zero-duty treatment under the ART, with the remainder subject to a 19% supplementary duty.
The BGMEA welcomed the agreement, saying it could unlock new export opportunities for products made with US-origin fibres, though it emphasised that implementation would require robust mechanisms to verify the use of such raw materials.
The American Chamber of Commerce in Bangladesh also supported the zero-tariff provisions, saying they could encourage deeper supply-chain integration, promote value addition and strengthen linkages between US producers and Bangladeshi manufacturers.
Former BGMEA president Faruque Hassan expressed mixed views, labelling the tariff reduction as modest but acknowledging that securing zero-duty access for apparel made with US cotton was a significant achievement that could support export growth to the United States and other markets.
The ART is poised to narrow the trade gap between Bangladesh and the United States, which currently stands at around US $ 5 billion, and could play a pivotal role in reinforcing bilateral trade ties.
