To secure proportionate tariff reductions through the promotion of the use of American raw materials in the country’s garment industry, Bangladesh’s apparel exporters are now showing interest in working jointly with US cotton exporters. The recently announced US executive order allows for proportionate tariff relief for apparel made with at least 20% American-origin raw materials.
They made the demand during a meeting at the BGMEA Complex in Uttara between President Mahmud Hasan Khan of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and a high-level group of American cotton exporters.
Increasing the usage of US cotton in Bangladesh’s garment sector and investigating prospects resulting from the recently announced US tariff facilitates on clothing made with American raw materials were the main goals of the Cotton USA-organised meeting.
“This new tariff concession creates enormous opportunities for our industry, as it will make our products more competitive in the global market,” said the BGMEA President.
He did point out that the BGMEA has not yet received precise instructions on how local clothing companies and spinners can be eligible for the bonus. In order for Bangladeshi exporters to start preparations right once, he encouraged the US delegation to assist in getting the required clarifications from the US administration.
Currently, the United States accounts for about 10% of Bangladesh’s cotton imports. According to the Head of BGMEA, with the right strategic initiatives and increased knowledge of better quality and sustainability of US cotton, this proportion might be doubled or even tripled.
To emphasise the advantages of adopting American cotton, he proposed collaborative research and knowledge-sharing sessions with factories and spinners. The US delegation welcomed the suggestion and said they were prepared to collaborate with BGMEA to increase the usage of American cotton in Bangladesh.
Additionally, when exporting cotton to Bangladesh, the US delegates noted significant difficulties with trade documentation and asked BGMEA for assistance in overcoming these obstacles. In response, the President of BGMEA asked the delegation to put the concerns in writing so that the organisation could formally bring them up with the Ministry of Commerce for appropriate action.
The American delegates praised Bangladesh’s textile and apparel sector as a major participant in the world market, pointing out that American cotton is known around the world for its dependability, sustainability and consistency. They said they were certain Bangladeshi producers could improve product quality and make better use of tariff relief in the US market by utilising more US cotton.
In order to shorten lead times, the group also looked at methods to improve infrastructure and logistics for US cotton supply in Bangladesh such as setting up a special warehouse. Under the new tariff policy, both parties committed to cooperating to provide traceability and transparency in the measurement of US raw material composition.
To help improve productivity and reduce waste in local mills, the BGMEA further requested technical cooperation and capacity building support from US cotton exporters. The association also invited for collaboration in research activities through the BGMEA Innovation Centre to drive efficiency and sustainability in production. Both BGMEA and the US cotton exporters declared their commitment to make bilateral economic partnership stronger and enhance mutual cooperation in the coming years.
