Offer duty-free access to RMG made of US cotton

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has again requested the US government to allow duty-free access to garments made from cotton imported from the United States.

"The move will benefit both Bangladeshi RMG exporters and US cotton growers, thus creating a win-win situation," said BGMEA President Faruque Hassan in a meeting with US Ambassador to Bangladesh Peter Haas at the BGMEA office in Dhaka on Sunday.

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Faruque also sought cooperation from the US in making the process of importing cotton from the country easier, according to a statement from the association.

The US is the single largest export destination for Bangladesh. In the fiscal year of 2021-22, Bangladesh exported apparel items worth $9.01 billion to the country, registering 51.57 per cent year-on-year growth.

Apparel products imported from Bangladesh are subjected to a 15.62 per cent tariff in the US market.

Bangladesh exported apparel items worth $9.01 billion to the US in the fiscal year of 2021-22, registering 51.57 per cent year-on-year growth. Photo: Star/file

The US does not allow duty-free access for apparel items sourced from any country in the world, sans those from certain African countries covered by the African Growth and Opportunity Act.

Faruque also informed Haas about the BGMEA's initiative aimed at organising the Bangladesh Apparel Summit in the US in October 2023 and requested him to extend support to this effect.

In the meeting, Haas praised the RMG industry of Bangladesh for its huge progress in ensuring workplace safety and workers' rights and welfare.

The ambassador also stressed the importance of building on the accomplishments and expressed his hope that the garment industry would continue its development initiatives in the coming days, said the press release.