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For the export of ready-made clothing made of cotton imported from the United States to the US market, BGMEA has looked for duty-free opportunities. On Monday, BGMEA President Faruque Hassan submitted three different letters to Texas Governor Greg Abbott, Texas State Senator Ted Cruz, and US Ambassador to Bangladesh Peter Haas.
Both nations will profit from duty-free clothing exports to the United States, the BGMEA president emphasized in the letter.
In the letter, he claimed that, in accordance with data from the World Trade Organization, Bangladesh's export share of ready-made clothing to the global market is 6.37 percent. Clothing exports from Bangladesh totaled $45.71 billion in 2022, with cotton clothing accounting for $32.86 billion, or 71.89 percent, of Bangladesh's total RMG exports.
According to the letter, about 99% of the cotton used in the RMG industry is imported, making Bangladesh the second-largest cotton importer behind the United States.
The letter highlighted the most recent data on cotton imports and garment exports, stating that the United States imported garments worth $9.74 billion from Bangladesh last year, of which $6.91 billion, or 71 percent, were made of cotton.
In contrast, the United States bought $47.51 billion worth of cotton clothing from around the world in 2017, with Bangladesh accounting for 14.54 percent of that total. It indicates that Bangladesh is one of the main countries from which cotton clothing is imported into the US.
In the letter, Faruque Hassan stated that in 2022, US importers would have to spend $1.55 billion in duties to bring in $9.74 billion worth of clothing from Bangladesh. In 2022, the import tariff on apparel items from Bangladesh was significantly higher than the average levy on all other imported goods from Bangladesh.
In this situation, the letter has asked for duty-free exporting options for clothing made with cotton that has been brought into the nation from the United States. The amount of trade between the two countries will rise if this facility is accessible. Cotton growers throughout the nation will also profit. The cost of clothing is also lower for US consumers, particularly those with modest incomes.
In the letter, it was recommended that suitable steps be taken to grant US cotton clothing duty-free access to the US market. Additionally, the BGMEA will ask the Bangladeshi Ministry of Commerce to speak with the US government and the US Embassy in Dhaka about this issue.
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