The United States has announced that Bangladesh will receive tariff reductions on apparel exports produced using American cotton and textile inputs, as part of a broader trade initiative aimed at boosting demand for US-grown cotton.
According to officials familiar with the matter, the US Department of Agriculture (USDA) and the Office of the US Trade Representative (USTR) have secured commitments from Bangladesh and Indonesia that will support increased purchases of US cotton and expand textile production linked to American supply chains.
Under the arrangement, Indonesia has agreed to facilitate commercial agreements to import at least 1,63,000 metric tonnes of US cotton annually for five years, later maintaining a minimum import level of 1,50,000 metric tonnes. Bangladesh, meanwhile, is set to benefit from tariff reductions on garments made with US cotton and related inputs, alongside other tariff concessions under the broader framework.
US Secretary of Agriculture Brooke L Rollins unveiled the “Great American Cotton Plan,” a USDA-led initiative designed to strengthen the US cotton farming sector, revive domestic textile manufacturing, expand export opportunities, and raise global demand for American cotton products.
US Ambassador to Bangladesh Brent T Christensen described the Reciprocal Trade Agreement (ART) as a “modern, balanced trade and investment partnership,” saying it preserves Bangladesh’s access to the US market with a competitive 19 per cent tariff rate, down from 37 per cent without the agreement.
The US side said the initiative comes as its cotton sector faces sustained pressure from rising production costs, global competition, and growing synthetic fibre use. Officials also highlighted efforts to promote natural fibres such as cotton, citing environmental concerns and rising consumer preference for biodegradable materials.
The plan also includes measures such as the “Plant Not Plastic” campaign to encourage greater use of natural cotton products. Despite the challenges, cotton remains a key agricultural commodity in the US economy, supporting rural communities and generating significant downstream economic activity.
USDA estimates that every dollar generated at the cotton farm level creates around $15 in related economic value, though the sector continues to face multi-billion-dollar losses and long-term structural decline in domestic processing capacity.
