BD to receive tariff cut on apparel made with US cotton

The United States (US) has said that the United States Trade Representative (USTR) and the US Department of Agriculture (USDA) have secured commitments from Bangladesh and Indonesia that will support future purchases of US cotton and textile production using American cotton.

"Bangladesh will receive a tariff reduction on apparel produced using US cotton and textile inputs, complementing additional tariff-elimination gains," an official told the media on Monday, referring to the Great American Cotton Plan.

Indonesia has agreed to support and facilitate commercial arrangements to import at least 163,000 metric tonnes of US cotton annually for five years and then maintain a minimum import level of at least 150,000 metric tonnes.

"It preserves Bangladesh's access to the US market with a competitive 19 per cent tariff, down from 37 per cent without the agreement, while supporting a level playing field where businesses and workers in both our economies can prosper and thrive," the official said.

US Secretary of Agriculture Brooke L. Rollins recently announced the Great American Cotton Plan, a comprehensive USDA initiative aimed at strengthening the cotton farm economy, restoring domestic textile manufacturing, expanding cotton trade opportunities and increasing demand for products made with American-grown cotton.

US Ambassador to Bangladesh Brent T. Christensen recently said the Agreement on Reciprocal Trade (ART) is a joint investment in both American and Bangladeshi prosperity.

"This agreement allows for a modern, balanced trade and investment partnership," he said.