Bangladesh is set to initiate cotton imports from the United States as a strategic measure to reduce the risk of potential tariffs on its exports, Foreign Affairs Adviser Md Touhid Hossain announced on Monday. Speaking at a workshop titled The Potential and Importance of Cotton Cultivation in Bangladesh for Saving Foreign Currency, organised by the Economic Reporters Forum (ERF) and the Bangladesh Cotton Association, Hossain emphasised the significance of this initiative.
“The US government has imposed tariffs on various countries since the Trump administration began,” Hossain stated. “While Bangladesh has continued exporting under these tariff conditions, there remains uncertainty about the possibility of additional tariffs. By importing cotton from the US and subsequently exporting garments made from it, we hope to create a scenario that will make the US hesitant to impose higher tariffs on us.”
In a bid to enhance domestic cotton production, the government plans to recognise cotton as an agricultural product and introduce subsidies for its cultivation within the next three months. Hossain also urged Md Moazzem Hossain, Member of the National Board of Revenue (NBR) for Customs, Export, and IT, to take immediate action to eliminate the current 4 per cent advance income tax on domestically produced cotton.
Addressing Bangladesh’s impending transition from a Least Developed Country (LDC) status in 2026, Hossain reiterated that businesses should have prepared for this long-anticipated change rather than seeking extensions. He noted that even after LDC graduation, Bangladesh will retain duty-free access to the European Union for an additional three years, allowing the business community ample time to prepare for the transition.
Hossain also assured that Bangladesh would meet all necessary conditions to secure the Generalised Scheme of Preferences Plus (GSP+) scheme in the European Union.
At the same workshop, NBR Member Moazzem indicated that discussions were underway to expand bonded warehouse facilities to various business sectors, suggesting that cotton imports could be a starting point. He also committed to presenting a proposal to withdraw the Advance Income Tax (AIT) on locally produced cotton to the appropriate NBR officials.
