The Bangladesh Textile Mills Association (BTMA) has sought policy clarification to operationalise Article 5.3 (Textiles) of the recently signed United States-Bangladesh zero-tariff trade agreement.
In a letter sent on 18 February to the National Cotton Council of America, BTMA said the 9 February agreement offers conditional zero reciprocal tariff access for Bangladeshi textile and apparel exports to the US, linked to imports of American cotton and man-made fibre.BTMA, representing 1,873 mills with investments exceeding $23 billion, noted that US cotton accounted for about 10% of Bangladesh’s total cotton imports in 2025 and said the share could increase four to five times.
The association proposed setting export eligibility at five to six times the value of US cotton imports, as $1 worth of cotton typically generates $5–6 in apparel exports. It also sought clarity on blended yarn eligibility, treatment of recycled cotton in denim, cap allocation mechanisms, and certification requirements.
BTMA recommended using the US Cotton Trust Protocol and requested a transitional waiver to support traceability compliance. The association is advising mills to prioritise US cotton and plans to establish a bonded warehouse facility for American cotton. A BTMA delegation is expected to visit the US for further consultations.
