US cotton exporters, BGMEA meet to boost apparel trade

DCV Desk
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A high-level delegation of US cotton exporters, at the initiative of US cotton exporter Cotton USA, met with Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan in an important meeting at the Uttara BGMEA Complex, November 4, 2025.

The main topics of discussion at the meeting were increasing bilateral trade, expanding the use of US cotton, and utilizing the newly announced tariff benefits in garment exports from Bangladesh to the US.

The US delegation present at the meeting were —

Li Yin (ECOM); Krista Rickman (Cargill); Diego Lozada (LDC); Wesley Rentz – Olam Agri; Wayne Boseman – Carolina Cotton Growers Association; Chris Jones – Staplcotn Cooperative; and Will Bettendorf and Ali Arsalan of Cotton Council International.

BGMEA President Mahmud Hasan Khan led the discussion, with Senior Vice President Enamul Haque Khan and Director Nafis-ud-Daulah participating on behalf of BGMEA.

The discussion highlighted the importance of US cotton supplies to Bangladesh’s apparel sector. The main focus was the recently announced US executive order, which provides for a proportional exemption from newly imposed additional tariffs on exports to the US if a minimum of 20% US raw materials are used in garment production.

The BGMEA President said, “This new tariff exemption opportunity has brought a huge potential for our industry, which will make our products more competitive in the international market.”

However, he mentioned that the BGMEA does not yet have clear instructions on the process through which Bangladeshi spinners and garment factories will get this benefit.

The BGMEA President requested the US delegation to provide the necessary clarifications from the US administration as soon as possible and provide them to the BGMEA. This will enable Bangladeshi entrepreneurs to immediately prepare for receiving the tariff benefits without delay.

Mahmud Hasan Khan further said that currently about 10 percent of imported cotton comes from the US, which can be increased by two or three times. However, this requires a change in perspective and well-thought-out strategic steps. He expressed the opinion that if spinners and factories are provided with information by conducting detailed research on the high quality and comparative advantages of US cotton, they will be encouraged to increase imports. The US delegation welcomed the proposal of the BGMEA President and pledged to work together on this issue.

The delegation mentioned in the meeting that there are some obstacles and complications in preparing commercial documentation for cotton exports to Bangladesh. They sought BGMEA’s cooperation in resolving this issue.

In view of this, the BGMEA President requested the delegation to inform BGMEA of the specific issues in writing. He assured that BGMEA will present the matter appropriately to the Ministry of Commerce so that these complications can be resolved quickly.

Representatives of Cotton Council International said in the meeting that the textile and garment industry of Bangladesh is in a very important position in the global market. On the other hand, US cotton is well known for its sustainable qualities, reliability and high quality. They said, “We believe that by using US cotton, Bangladeshi garment exporters will be able to further improve the quality of their products and expand their business by utilizing the tariff benefits in the US market.”

The meeting also discussed ways to improve logistics and infrastructure to facilitate and expedite the supply of US cotton to the Bangladeshi market. In particular, the possibility of setting up a warehouse to expedite cotton imports from the US was discussed, which, if implemented, would reduce the industry’s lead time.

Both sides agreed to work together to ensure transparency and traceability regarding the new tariff policy and the US raw material usage measurement system.

BGMEA requested US cotton exporters to provide training and technical assistance to increase the efficiency and productivity of Bangladeshi textile and garment factories. At the same time, it called for providing the necessary technical assistance and knowledge to conduct research on increasing production and reducing wastage in the mills at the BGMEA Innovation Center.

Both sides expressed their determination to further strengthen the economic partnership and mutual cooperation between the two countries in the future.

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