Bangladesh Textile Mills Association (BTMA) sought clarification on some provisions of a clause in an agreement between Dhaka and Washington that provides conditional zero reciprocal tariff access for garments made using American cotton and manmade fibre.
BTMA President Showkat Aziz Russel in a letter to President and CEO of National Cotton Council of America, Dr Gary Adams, made the request aiming to ensure smooth implementation and mutual benefits.
The trade body that represents 1,873 mills with cumulative investments exceeding $23 billion, also said the deal could significantly expand imports of American cotton while boosting apparel exports to the United States. It noted that US cotton accounted for around 10 per cent of Bangladesh’s total cotton imports in 2025 and added that there is an opportunity to increase that share four to five times in the near term.
The BTMA further sought the Council’s support in facilitating constructive engagement with relevant US authorities, including cotton producers, trade bodies, apparel importers associations and industry leaders, to operationalise Article 5.3 (textile) in a practical and mutual beneficiary manner.
Among the issues flagged were eligibility criteria for synthetic fibre components under article 5.3 and consideration of a policy waiver for recycled components, saying traceability of recycled content used in denim production is challenging.
On the proposed cap mechanism, the BTMA suggested setting export eligibility at five to six times the value of US cotton imports, noting that $1 worth of cotton typically translates into $5-6 in FOB apparel exports. It also sought clarity on whether the cap would be allocated nationally on a first-come basis or company-wise linked to actual cotton imports.
For certification, BTMA recommended using the US Cotton Trust Protocol, proposing a temporary transitional waiver for facilitating an effective kick-start of the programme.
