The Bangladesh Textile Mills Association (BTMA) is intensifying advocacy for the swift operationalization of duty-free market access provisions stipulated in the bilateral trade framework with the United States.

During a high-level meeting with US Embassy delegates in Dhaka, Showkat Aziz Russell, President, BTMA emphasized, while the agreement technically provides for zero-tariff treatment for ready-made garments (RMG) produced using US-sourced cotton and man-made fibers (MMF), the absence of finalized Rules of Origin has stalled commercial realization. With Bangladesh currently navigating a complex tariff environment - including a baseline reciprocal duty - the timely implementation of Article 5.3 is essential to restore export competitiveness, noted Russedll. 

Industry stakeholders argue, this provision serves as a mutually beneficial ‘win-win,’ enabling Bangladeshi manufacturers to offset rising production costs while providing American cotton exporters a more stable, high-volume destination.

Scaling infrastructure to sustain export growth

Beyond market access, the association is pushing for the rapid deployment of a Central Bonded Warehouse system to streamline the supply chain for American inputs. The objective is to mitigate the logistical premiums that currently render the use of US-origin cotton less cost-effective compared to traditional sources. By establishing this infrastructure, Bangladesh aims to secure its position as a primary textile partner, even as the sector faces domestic challenges, including high raw material duties and operational volatility. With member mills representing over $23 billion in total investment, the BTMA views these trade-facilitating reforms as critical to ensuring the sector’s survival during the transition out of LDC status. Negotiators are now prioritizing a mission to the US to align government and private-sector stakeholders on a concrete timeline for these structural upgrades.

Advocating trade policy reforms for long-term competitiveness

The Bangladesh Textile Mills Association (BTMA) represents over 1,850 member mills specializing in yarn, fabric, and finishing services. Acting as the primary back-linkage to the nation’s RMG sector, it advocates for trade policy reforms and infrastructure development to sustain long-term competitiveness in the global textile market.