The apparel manufacturers of Bangladesh further sought duty-free access to the US market for apparel items made from US cotton, according to media reports.
Media reported citing BMGEA Vice President Md Nasir Uddin who negotiated with the delegates from the US cotton industry recently regarding the issues.
In order to increase their demand inside these business circles, they’ll primarily engage with business chambers and trade bodies of the US cotton, he told the Daily Star.
The idea would next be heard at a national level, and the BGMEA’s demand would then be conveyed gradually to the local governments of cotton-producing states in the US.
For a long time, Bangladesh has urged the US for lower rates, or at least duty-free treatment, on imports of apparel items made from US cotton.
However, RMG industry leaders expect that they would get a favorable response due to the ongoing trade conflict between the US and China.
Currently, shipments to the US are subject to a 15.62% duty for local clothing exporters.
With the exception of several African nations covered by the African Growth and Opportunity Act, the US does not permit duty-free access for garment products sourced from any other country in the globe.
The government has abolished the requirement for double fumigation of cotton imported from the US, so, Bangladesh may get benefit this time.
The US is the single largest export destination for Bangladeshi apparel exporters and they shipped apparel items worth $9.01 billion to the destination.
However, during the July-February period of the current fiscal year, Bangladesh exported garment items worth $5.60 billion, fetching a negative growth of 2.87% year-on-year.
According to industry insiders, Bangladesh faced nearly $1 billion as a duty for exporting RMG items to the US market last fiscal year.