Bangladesh to get additional duty exemption on using US cotton: BGMEA

Bangladesh is set to receive partial duty exemptions on cotton-based garment exports to the United States, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

The benefit stems from a recent executive order issued by U.S. President Donald Trump, which offers reduced tariffs for garments made with a minimum of 20 percent U.S.-produced cotton.

BGMEA President Mahmud Hasan Khan announced the development at a press conference held at the BGMEA office in Dhaka on Saturday (August 2).

He stated that the association is in contact with U.S. authorities to clarify implementation details and ensure compliance through U.S. Customs.

Currently, around 75 percent of Bangladesh’s exports to the U.S. are cotton-based garments. Under the new directive, qualifying products will be exempt from an additional 20 percent tariff, which could lower production costs and increase competitiveness for Bangladeshi manufacturers.

However, BGMEA president cautioned that the exemption is conditional and dependent on the ongoing negotiation of U.S. trade and security agreements with other countries. He emphasized the need for Bangladesh to remain proactive in pursuing broader trade concessions through diplomatic engagement.