Bangladesh will receive a tariff reduction on apparel produced using US cotton and textile inputs, complementing additional tariff elimination wins.
This was informed to United News of Bangladesh (UNB) by a US official when referring to the Great American Cotton Plan.
The United States had earlier secured commitments from Bangladesh and Indonesia that will support future US cotton purchases and textile production using American cotton.
US Ambassador to Bangladesh Brent Christensen had recently said the agreement on Reciprocal Trade, also known as the ART, is a joint investment in both American and Bangladeshi prosperity.
“ART preserves Bangladesh’s access to the US market with competitive 19% tariffs, down from 37% without the agreement and supporting a level playing field,” he had added.
US Secretary of Agriculture Brooke L. Rollins has recently announced the Great American Cotton Plan, a comprehensive USDA initiative to strengthen the cotton farm economy, restore domestic textile and manufacturing.
The Great American Cotton Plan was announced came at a time when US cotton farmers face a fifth consecutive year of negative returns driven by rising input costs and trade distortions.
As part of the plan, USDA will elevate the “Plant Not Plastic” initiative to encourage consumers to purchase products made with healthy natural American cotton fibers rather than synthetic plastic-based alternatives.
Nearly 70% of the world’s textiles garments are now made from synthetic fibers, a majority of which is polyester staple fiber.
Image courtesy: Topntp26 by Freepik
