BGMEA and US Cotton Exporters Discuss Enhanced Cooperation in Textile Trade

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Dhaka: A high-level delegation of US cotton exporters met with Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan today at the BGMEA Complex in Uttara to discuss expanding bilateral trade and enhancing collaboration in the textile and apparel sectors.

According to Bangladesh Sangbad Sangstha, the meeting, organized by Cotton USA, focused on increasing the use of US cotton in Bangladesh's apparel industry and exploring opportunities arising from the newly announced US tariff facilitation on garments produced with American raw materials. The U.S. delegation included representatives from ECOM, Cargill, LDC, Olam Agri, Carolina Cotton Growers Association, Staplcotn Cooperative, and Cotton Council International (CCI).

BGMEA Senior Vice President Enamul Haque Khan and Director Nafis-ud-Daula also attended the meeting, according to a BGMEA press release. Discussions centered on the US executive order that offers partial tariff exemptions for garments exported to the US if at least 20 percent of the raw materials used are sourced from the United States.

BGMEA President Mahmud Hasan Khan highlighted the new tariff exemption as an opportunity for the industry to become more competitive globally. However, he noted the need for detailed procedural guidelines to help Bangladeshi spinners and factories avail of the benefit. He urged the U.S. delegation to expedite clarification from the U.S. administration for timely utilization of the facility.

Currently, about 10 percent of Bangladesh's imported cotton comes from the U.S., and Khan indicated that this could be increased significantly with strategic initiatives. He proposed joint studies to highlight the quality and comparative benefits of U.S. cotton to encourage greater use among local manufacturers.

The U.S. representatives expressed their willingness to work jointly to promote awareness and capacity building. They also discussed procedural challenges in trade documentation for cotton exports to Bangladesh and sought BGMEA's support in addressing them. Khan responded by requesting specific issues in writing to raise them with the Ministry of Commerce for resolution.

Representatives from Cotton Council International praised Bangladesh's apparel sector for its global standing and emphasized that U.S. cotton could enhance the competitiveness of Bangladeshi exports under the new tariff regime. Both sides also discussed logistical improvements, including the potential establishment of a dedicated warehouse in Bangladesh to reduce lead time.

The meeting concluded with a shared commitment to ensure transparency and traceability in the use of U.S. raw materials under the new tariff rules. BGMEA requested technical assistance and training from U.S. cotton exporters to enhance factory productivity and efficiency and invited collaboration on joint research to improve production and reduce waste in textile mills.

Both parties reaffirmed their commitment to strengthening bilateral trade and deepening the economic partnership between Bangladesh and the United States.