BGMEA seeks joint initiative with US cotton exporters for proportionate tariff reduction under new tariff era

Bangladesh’s apparel exporters have expressed interest in working jointly with U.S. cotton exporters to secure proportionate tariff reductions by promoting the use of American raw materials in the country’s garment industry.

As the recently announced U.S. executive order that allows proportionate tariff relief for apparel made with at least 20 percent American-origin raw materials.

They made the call during a meeting between a high-level delegation of U.S. cotton exporters and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan on Tuesday at the BGMEA Complex in Uttara, said a press release.

The delegation’s visit was facilitated by Cotton USA, an initiative of Cotton Council International (CCI).

The discussion focused on expanding bilateral trade, promoting the use of U.S. cotton in Bangladesh’s textile sector, and leveraging tariffs.

“This new tariff concession creates enormous opportunities for our industry, as it will make our products more competitive in the global market,” said BGMEA President Mahmud Hasan Khan.

However, he noted that the BGMEA has yet to receive clear guidelines on how local spinners and garment factories can qualify for the benefit. He urged the U.S. delegation to help obtain necessary clarifications from the U.S. administration so that Bangladeshi exporters can begin preparations without delay.

Currently, around 10 percent of Bangladesh’s imported cotton originates from the United States. The BGMEA chief said this share could be doubled or even tripled through proper strategic initiatives and greater awareness about the superior quality and sustainability of U.S. cotton. 

He suggested conducting joint research and knowledge-sharing sessions with spinners and factories to highlight the benefits of using American cotton.

Welcoming the proposal, the U.S. delegation expressed readiness to work jointly with BGMEA to expand the use of U.S. cotton in Bangladesh.

The delegation included Li Yin (ECOM), Krista Rickman (Cargill), Diego Lozada (LDC), Wesley Rentz (Olam Agri), Wayne Boseman (Carolina Cotton Growers Association), Chris Jones (Staplcotn Cooperative), and Will Bettendorf and Ali Arsalan of Cotton Council International.

From the BGMEA side, Senior Vice President Enamul Haque Khan and Director Nafis-ud-Daula joined the discussion.

The U.S. representatives also pointed out certain challenges in trade documentation while exporting cotton to Bangladesh and sought BGMEA’s cooperation in resolving these barriers. In response, the BGMEA president requested the delegation to share the issues in writing so the association could formally raise them with the Ministry of Commerce for necessary action.

The CCI representatives lauded Bangladesh’s textile and apparel industry as a key player in the global market, noting that American cotton is globally recognized for its consistency, sustainability, and reliability. They expressed confidence that by using more U.S. cotton, Bangladeshi manufacturers could enhance product quality and better utilize tariff relief in the U.S. market.

The meeting also explored ways to streamline logistics and infrastructure for U.S. cotton supply in Bangladesh, including the possibility of establishing a dedicated warehouse to reduce lead time.

Both sides agreed to work together to ensure transparency and traceability in measuring U.S. raw material content under the new tariff policy.

The BGMEA further requested technical cooperation and capacity-building support from U.S. cotton exporters to help improve productivity and reduce waste in local mills. The association also invited collaboration in research activities through the BGMEA Innovation Centre to drive efficiency and sustainability in production.

Both parties reiterated their commitment to strengthening bilateral economic partnership and mutual cooperation in the coming years.