BGMEA welcomes Bangladesh-US trade deal

Business Report :

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Tuesday welcomed the trade deal signed between Bangladesh and the USA on February 9, saying the agreement will help increase garment exports to the American market.

The trade agreement was signed following nine months of intensive discussions between the two nations, according to a press release.

Based on preliminary information available to BGMEA, the agreement reduces the reciprocal tariff imposed on Bangladeshi products in the US market from 20 percent to 19 percent. Notably, garments produced using cotton and manmade fibres imported from the United States will not be subject to any reciprocal tariff.

“We believe this provision will further enhance Bangladesh’s access to the US market. However, to effectively utilise this opportunity, it will be essential to ensure proper valuation and traceability of US-origin raw materials used in production,” BGMEA said in a statement.

According to the association, as US cotton is of superior quality and relatively higher cost, significant export opportunities can be created if local spinners are able to ensure competitive yarn pricing. It is important to note that BGMEA has not yet been formally informed of the complete terms and conditions of the agreement.

Upon receiving detailed documentation from the government, BGMEA will convene an urgent meeting with its members and engage in discussions with the US Embassy in Dhaka and the USTR to determine the next course of action.