Bangladesh’s apparel manufacturers have placed a new proposal asking the US to give duty-free access to the apparel items made out of US-grown cotton and produced in Bangladesh.
The proposal was placed by Bangladesh Garment Manufacturers and Exporters Association (BGMEA) during a farewell programme felicitated to outgoing US Ambassador in Dhaka Marcia Bernicat at BGMEA Complex on September 25, 2018.
“We use a lot of US cotton to make garments and a significant part of those are shipped back to the US. If we get duty free access for garments made of US cotton, I think this will be win-win for us, for the US cotton growers and for the US consumers who will get products at a cheaper price,” said BGMEA President Siddiqur Rahman.
“So I would request you to kindly discuss this issue with your government for consideration, and would appreciate a response and your further guidance,” he added.
Notably, Bangladesh is the largest importer of cotton in the world – with more than seven million bales of import last year – which heavily relies on supply of the natural fibre from neighbouring India. The United States, the world’s largest exporter of cotton, has a small share in this huge Bangladeshi cotton market.
Also, Bangladesh has had age-old fumigation rules on the import of US-made commodity in Bangladesh, including cotton – which has contributed to the Western country’s low market share in Bangladesh’s cotton market. Insiders blame such policies, distance between the two countries and the congestion at Chattogram port as major hurdles for increasing US cotton shipment to Bangladesh.
Bangladesh’s apparel industry is heavily reliant on the natural fibre. Though there is no correct estimate as to how much the production is reliant on cotton, insiders say the amount can reach as high as 82 per cent. This has also labelled Bangladesh as a country to source cotton-made apparel items internationally.
