BGMEA seeks duty-free benefit for garment export to US

Staff Reporter :
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has requested the US authorities for duty-free access to the US market for garment products made from the American cotton.
The apex trade body wrote separate letters to Governor of Texas Greg Abbott, Senator from the Texas Ted Cruz, and US ambassador in Bangladesh Peter Haas on Monday.
In the letter, the BGMEA said on February 19, this year, Bangladesh government eased the rules of mandatory fumigation tests for importing cotton from Western Hemisphere countries or regions that covers the United States of America.
The relaxation of the rule will certainly make trade easier, reduce time and cost of importing cotton from the USA, it said.
The BGMEA said, “As Bangladesh depends greatly on its access to foreign markets and the clothing industry remains the driving force behind our exports and economic growth, we urge the United States to consider duty free access to apparel products made of US cotton”.
Besides, as Bangladesh has positioned itself as a major supplier of apparel in the world, there is a clear potential for the US cotton grower and exporters to further tap this market, it added.
The apex body further said, “Given our growth potentials and duty free import facilities of cotton in Bangladesh, the US cotton growers and exporters can further exploit opportunities if duty free access is granted to apparel made of US cotton”.
Especially the proposed duty free treatment will benefit US cotton through increased demand and earning premium price, it added.
Duty-free access to clothing made in Bangladesh will also benefit US consumers, especially the middle and lower-income groups for whom clothing and other essentials comprise a major share of expenses, the BGMEA said.
“On a brighter note, we hope global economy, retail business and trade will start coming back in 2024 while the demand for cotton will further increase,” it said.
Bangladesh’s garments face 15.62 per cent tariff in the US market.
Bangladesh is the second largest apparel exporting country in the world, and its share in the global apparel trade is 6.37 per cent, according to BGMEA.
In 2022, Bangladesh’s apparel export to the world reached $45.71 billion.