Dhaka: Bangladesh's garment industry is poised for a major export breakthrough in the United States following the signing of the landmark Agreement on Reciprocal Trade (ART). Under this new agreement, the general reciprocal tariff on Bangladeshi exports has been reduced from 20 percent to 19 percent. However, the most significant gain lies in a specialized 'zero-duty' clause, which exempts apparel manufactured in Bangladesh using US-sourced cotton or man-made fibers from the 19 percent reciprocal tariff, providing a massive cost advantage for Bangladeshi exporters.
According to United News of Bangladesh, the United States is the primary destination for Bangladeshi apparel, currently absorbing nearly 19 percent of the country's total garment exports. Data from the Office of Textiles and Apparel (OTEXA) of USA highlights the scale of this potential, noting that from January to November 2025, the US imported $7.6 billion in apparel from Bangladesh, of which $5.18 billion consisted of cotton-based products.
Analysts suggest that by pivoting to US cotton, Bangladesh can convert a significant portion of its current $8 billion annual export volume to the US into duty-free shipments, drastically increasing its market share. The agreement also targets the high-growth non-cotton (synthetic) segment, where non-cotton products currently account for roughly 30 percent of Bangladesh's total US exports. With the ART providing incentives for using US-produced man-made fibers, Bangladesh has an opportunity to expand into high-value categories like active wear and technical outerwear.
Sheikh Bashir Uddin, Bangladesh's Commerce Adviser, stated, "This agreement marks a new height in our economic relations. It not only lowers trade barriers but also solidifies Bangladesh's position as a premier, high-value partner in the global supply chain."
Industry leaders believe the deal will encourage local spinning mills to integrate more American raw materials to capitalize on the zero-tariff route. Faisal Samad, Director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), emphasized that this trade arrangement creates vital opportunities for the Ready-Made Garment (RMG) sector, particularly for products manufactured using US cotton and man-made fibers.
Engineer Rajib Haider, former Director of the Bangladesh Textile Mills Association (BTMA), highlighted the benefits for the primary textile sector, noting that the opportunity to gain additional tariff exemptions by using US cotton to produce yarn and fabric locally would strengthen Bangladesh's position in the global supply chain.
"If we can leverage these tariff concessions by integrating US cotton into our production, it will create a highly positive outlook for both our textile and clothing industries," Haider added.