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HomeNews & ViewsBusiness FocusBangladesh Seeks Duty-Free Access for Apparel Made from U.S. Cotton

Bangladesh Seeks Duty-Free Access for Apparel Made from U.S. Cotton

The Bangladesh Textile Mills Association (BTMA) has requested the cooperation of the National Cotton Council of America (NCCA) to secure duty-free access to the U.S. market for ready-made garments (RMG) produced using American cotton.

BTMA President Shawkot Aziz Russell made the appeal in a letter addressed to NCCA President and CEO Gary Adams. A copy of the letter was also sent to Eric Gillan, Counselor at the U.S. Embassy. The letter was sent recently and a copy has been obtained by Sarabangla.

In the letter, Bangladesh calls for the permanent removal of the current 37% countervailing duty imposed by the United States on its products. It also notes that such a move would help expand U.S. cotton exports. As a result, BTMA is seeking duty-free access for apparel made from American cotton in the U.S. market.

The letter comes at a time when the U.S. administration, on April 9 of this year, announced a 90-day suspension of the additional 37% tariff for Bangladesh and 74 other countries.

In the letter, Russell noted that this 90-day period presents a strategic opportunity for diplomatic engagement and discussions. He urged for a permanent withdrawal of the additional tariff on Bangladeshi goods.

Russell also highlighted that in 2024, Bangladesh imported approximately $270 million worth of American cotton, accounting for about 12% of the country’s total cotton imports. He expressed optimism that this volume could increase four to five times in the future.

To further promote the use of American cotton, BTMA is preparing to establish a central warehouse in Bangladesh dedicated solely to U.S. cotton, reflecting their commitment. A significant portion of garments produced using this cotton is exported to the U.S. and other global markets.

Russell further stated that the Bangladesh government is committed to deepening trade ties with the United States. In line with that, a 12- to 13-member BTMA delegation will soon visit the U.S. to engage in high-level discussions with U.S. government officials and private sector stakeholders to advance the issues raised in the letter.

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