A delegation of the United States’ cotton exporters and the readymade garment manufacturers of the country held a meeting on Tuesday to strengthen bilateral trade, expand use of US cotton in Bangladesh’s apparel sector and maximise benefits from the newly announced US tariff exemptions.
According to a press release, the meeting between the visiting delegation and the Bangladesh Garment Manufacturers and Exporters Association was held at BGMEA Complex in the capital’s Uttara on the day.
The meeting noted that by using more US cotton, Bangladeshi exporters could further enhance quality of their products and expand their business by taking advantage of the tariff incentives.
BGMEA president Mahmud Hasan Khan said that US executive order on tariffs had an article allowing apparel exporters to enjoy partial exemptions from newly imposed tariffs if at least 20 per cent of their raw materials came from US sources.
‘This new tariff relief could open up a major opportunity for our industry and would make our products more competitive globally,’ said the BGMEA president.
However, he noted that local manufacturers and spinners had yet to receive clear guidance on how to apply for or benefit from the new tariff policy and so he urged the US delegation to help BGMEA obtain clarification from US authorities at the earliest.
The visiting delegation was organised by Cotton USA and included Li Yin of ECOM, Krista Rickman of Cargill, Diego Lozada of Louis Dreyfus Company, Wesley Rentz of Olam Agri, Wayne Boseman of Carolina Cotton Growers Association, Chris Jones of Staplcotn Cooperative and Will Bettendorf and Ali Arsalan of Cotton Council International.
Representatives from Cotton Council International said that Bangladesh’s textile and apparel industry held a crucial position on the global market, while US cotton was globally recognised for its sustainability, reliability and superior quality.
The BGMEA president said that the import of cotton from the United States could surge through targeted strategies.
Currently, about 10 per cent of Bangladesh’s imported cotton comes from the United States.
Mahmud Hasan Khan Babu said that if the US counterpart shared detailed studies on the quality and comparative advantages of US cotton with local millers, it might encourage greater imports of US cotton.
The US delegates welcomed the proposal and expressed their willingness to collaborate with the BGMEA in promoting the use of US cotton.
They mentioned that certain procedural and documentation issues were hindering the export of cotton to Bangladesh and they sought the BGMEA’s cooperation in addressing these challenges.
In response, Mahmud urged the delegation to submit the issues in writing so that the BGMEA could present them to the Ministry of Commerce for prompt resolution.
The meeting also discussed ways to improve logistics and infrastructure to speed up and streamline the supply of US cotton to Bangladesh.
Both sides explored a possibility of establishing a dedicated warehouse facility to reduce lead times and support smooth supply chain operations.
They agreed to work jointly to ensure transparency and traceability in the measurement and certification of US raw material use under the new tariff framework.
The BGMEA also requested training and technical support from US cotton exporters to boost efficiency and productivity of Bangladesh’s textile and garment factories.
Moreover, the association sought collaboration with Cotton Council International to provide technical knowledge and research support through the BGMEA Innovation Centre to help mills increase output and reduce waste.
