BTMA seeks clarity on operational issues of US-BD zero-tariff textile deal

The Bangladesh Textile Mills Association (BTMA) has called for structured consultations and clear policy guidance to operationalise Article 5.3 (Textiles) of the recently signed US-Bangladesh trade agreement, which could substantially increase imports of American cotton while boosting apparel exports to the United States.
In a letter dated 18 February to Dr Gary Adams, president and CEO of the National Cotton Council of America, BTMA noted that the 9 February agreement provides conditional zero reciprocal tariff access for textile and apparel exports, linked to imports of US raw cotton and man-made fibre.
Representing 1,873 mills with cumulative investments exceeding US$23 billion, BTMA said US cotton accounted for about 10% of Bangladesh’s total cotton imports in 2025, with potential to increase four to five times in the near term. At full capacity, Bangladesh’s annual raw cotton requirement could reach 16 million bales, compared to the current effective demand of roughly eight million bales.
The association emphasised the mutual benefits of the framework, including stronger competitiveness of Bangladeshi apparel in the US market, expanded sourcing options for American retailers, and a “captive and growing market” for US cotton producers, as zero-tariff eligibility requires use of 100% US cotton.

However, BTMA sought clarity on operational issues, including eligibility rules for blended yarns with synthetic fibres, the treatment of recycled cotton in denim production, and the proposed export cap mechanism. The association suggested setting export eligibility at five to six times the value of US cotton imports, noting that $1 of cotton typically generates $5-6 in FOB apparel exports.
For certification, BTMA recommended using the US Cotton Trust Protocol, proposing a temporary transitional waiver while enhanced traceability systems are developed. The association is advising members to prioritise US cotton and is preparing a dedicated bonded warehouse facility for American cotton.
A BTMA delegation is expected to visit the United States soon to engage policymakers and industry stakeholders on implementing the agreement.