Bangladesh’s ready-made garment (RMG) industry is poised for significant growth following the signing of the Agreement on Reciprocal Tariff (ART) with the United States on 9th February, a landmark trade deal expected to strengthen bilateral commerce and enhance the country’s competitiveness in the US market.
After nearly nine months of negotiations, the United States agreed to reduce the reciprocal tariff on Bangladeshi exports to 19%, down from the previously negotiated 20%. More significantly, the agreement grants zero reciprocal tariffs on selected textile and apparel products manufactured in Bangladesh using US-sourced cotton or man-made fibre, creating new opportunities for exporters.
Industry leaders estimate that Bangladesh’s apparel exports to the US could increase from the current around $10 billion to $15 billion within the next two to three years, supported by stronger demand, increased competitiveness, and higher foreign direct investment (FDI).
The agreement is also expected to encourage greater use of US cotton in Bangladesh’s textile industry. Industry stakeholders noted that the planned development of the Matarbari Deep Sea Port and Bay Terminal will help reduce the cost of importing US cotton, making local manufacturers more competitive in global markets.
Strengthening bilateral trade
Officials believe the ART (Agreement on Reciprocal Tariff) will help narrow the trade imbalance between Bangladesh and the United States, currently estimated at approximately $5 billion.
According to the Export Promotion Bureau (EPB), Bangladesh exported $7.5 billion worth of ready-made garments to the US between February 2025 and January 2026, representing 19.46% of the country’s total RMG exports of $38.78 billion during the period.
Total bilateral trade between the two countries reached $10.99 billion in 2024, compared with $10.92 billion in 2023 and $14.65 billion in 2022. Bangladesh’s exports to the US stood at $8.78 billion in 2024, $8.67 billion in 2023, and $11.84 billion in 2022.
Data from the US Office of Textiles and Apparel (OTEXA) also show that US apparel imports increased by 21.15% from Vietnam, 14.51% from China, 10.46% from Bangladesh, 6.34% from India, and 6.03% from Cambodia during the period from December 2024 to November 2025.
