Bangladesh’s textile manufacturers have renewed calls for the United States to expedite duty-free market access for apparel made with American cotton and man-made fibres, arguing that the long-discussed measure could strengthen bilateral trade while helping Bangladesh prepare for life after graduation from least developed country status.
The issue was raised during a meeting between leaders of the Bangladesh Textile Mills Association (BTMA) and a delegation from the US Embassy in Dhaka, where industry representatives urged faster implementation of provisions contained in the Bangladesh-United States Trade Agreement.
BTMA President Showkat Aziz Russell said Bangladesh’s primary textile sector plays a critical role in supporting export competitiveness, increasing domestic value addition and strengthening the country’s industrial base at a time when exporters are preparing for the loss of some trade preferences following LDC graduation.
A central focus of the discussion was Article 5.3 of the bilateral trade agreement, which industry leaders say envisages preferential access, including duty-free treatment in the US market, for apparel products manufactured in Bangladesh using cotton and man-made fibre sourced from the United States.
Industry seeks progress on trade commitments
Bangladesh remains one of the largest apparel suppliers to the United States, but unlike several competing exporters, its products continue to face import duties in the world’s largest consumer market.
BTMA leaders argued that implementation of Article 5.3 could create commercial benefits for both countries by encouraging greater use of American raw materials while improving the competitiveness of Bangladeshi apparel exports.
The association said the measure could stimulate additional US exports of cotton and synthetic fibres to Bangladesh, one of the world’s largest garment-producing nations, while supporting investment in higher-value textile manufacturing.
Industry leaders, however, expressed concern that little visible progress has been made towards operationalising the provision despite continued interest from manufacturers.
Russell called for the expeditious finalisation of the relevant rules of origin, which would determine eligibility for preferential treatment, and sought continued support from US authorities to move the process forward.
Focus on post-LDC competitiveness
The discussions come as Bangladesh’s textile and apparel sectors seek new avenues to preserve export competitiveness following the country’s transition from least developed country status.
Manufacturers have increasingly emphasised the need for deeper integration into global supply chains, higher domestic value addition and stronger trade relationships with major export destinations.
BTMA officials argued that greater utilisation of US cotton and man-made fibres could help diversify sourcing patterns while strengthening commercial ties between the two countries.
The meeting also covered broader issues related to bilateral trade and investment, including cooperation across the textile and apparel value chain and measures to encourage greater industrial collaboration.
Central bonded warehouse discussed
Industry representatives also highlighted the importance of early operationalisation of the central bonded warehouse facility, which manufacturers have long viewed as a key reform to improve access to imported raw materials and enhance supply chain efficiency.
The US Embassy delegation included Political-Economic Counsellor Eric Geelan, Agricultural Attaché Erin Covert and Political-Economic Officer Charles Besnard.
Both sides exchanged views on expanding bilateral trade, increasing the use of US cotton in Bangladesh’s textile sector and improving market access opportunities for Bangladeshi textile and apparel products.
Participants reaffirmed their commitment to maintaining engagement on trade and investment issues as both countries explore opportunities to deepen economic cooperation.
BTMA leaders attending the meeting included directors Chowdhury Md Hanif Shoeb, Syed Ishtiaq Ahmed, Mirza Ahmed Ispahani and Rubayet Haider. Former BTMA Director Md Masud Rana and Razeeb Haider also participated in the discussions.
