Industry insiders and experts say a GSP facility for clothes made with US cotton will be a win-win for both Bangladesh and the USA. Bangladesh holds a strong position in cotton-based clothes manufacturing, but meets 98 per cent of its cotton demand through imports.
Currently, the US cotton market share in Bangladesh is only 5.5 per cent, and the country produces 95 per cent of cotton for exports.
GSP for the US cotton-made clothes can help increase its market share in Bangladesh to $3 billion over the next 5 years – 7 years, and additional exports for Bangladesh worth $400 million – $800 million every year, they added.
Industry insiders believe that the state of political ties between Bangladesh and the USA will not impact bilateral trade.
“We believe that the recent US VISA Policy will not impact Bangladesh’s business sector,” said Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan.
On the issue, Commercial Counselor to the US Embassy in Bangladesh John Fay said, “Bangladesh is improving in issues such as labour rights, labour law reforms and freedom of association for reviving the GSP, which remains lapsed since December 2020.”
The US Congress has not taken any new initiatives in this regard since then. But there is a possibility of reducing the duty on the import of garment items from Bangladesh, Fay added while addressing a seminar titled “Bangladesh-US Trade and Investment.”
The event, held at the Economic Reporters Forum (ERF) auditorium in the capital on Monday, was organised by the ERF. Forum President Mohammad Refayet Ullah Mridha presided over the programme, while Secretary Abul Kashem moderated it.
Research and Policy Integration for Development (RAPID) Chairman Mohammad Abdur Razzaque presented a key note titled “Partnering up: US-Bangladesh Trade and Economic Cooperation.”
Razzaque said, “Bangladesh should ensure fibre security in the coming days, as the country produces less than two per cent of the required nine million bales of cotton. Almost the entire demand is met through imports, and the USA is gradually becoming a good source for this fibre.
“Bangladesh’s exports to the US have expanded at a faster pace in recent times, compared to many other countries. But due to the low export basket, Bangladesh has failed to cash in on the available opportunities.”
