Bangladeshi apparel exporters are exploring a direct partnership with US cotton farmers to offset rising tariff barriers and strengthen “Made in Bangladesh” branding in the United States. This potential shift could reshape raw material sourcing and trade dynamics for the country’s vital RMG industry. At a strategic dialogue in Dhaka hosted by AmeriBangla, RMG leaders discussed sourcing cotton directly from US suppliers to improve quality and supply chain resilience . By purchasing cotton directly from farmers, Bangladesh could bypass intermediaries, benefit from superior fibre quality—with less than 2% waste—and gain better price control. Currently, US cotton accounts for just 6% of Bangladesh’s total cotton imports in FY25. However, farmers from over 17 US states have expressed readiness to supply Dhaka and Chattogram-based garment factories, and they’ve proposed establishing bonded cotton warehouses locally . These warehouses would ensure smoother shipments, faster lead times, and possibly help ease tariff pressures on Bangladeshi exports. Apparel industry executives welcomed the proposal, noting that direct sourcing could offset part of the expected 35–37% US tariff by improving productivity and ensuring quality consistency. They stressed that stable, long-term pricing and transparent supply chains are vital for maintaining global competitiveness. This discussion comes amid ongoing bilateral trade negotiations between Dhaka and Washington, aimed at securing more favorable treatment for Bangladeshi exports . In April, the Bangladeshi leadership signaled its willingness to boost imports of US agricultural goods—including cotton—to facilitate discussions around tariff relief. If implemented, the strategy could help Bangladesh diversify its cotton sourcing and reduce dependence on traditional suppliers like India, West Africa, and Brazil. The shift toward high-quality US cotton aligns with the government’s broader ambition to upscale its textile industry and ensure resilience in a volatile global market. In the longer run, farmer-to-factory ties and bonded warehouse infrastructure may open new avenues for trade diplomacy. US cotton farmers have indicated that increased exports to Bangladesh could build influence in Washington and support tariff re-negotiation efforts. This proactive move shows Bangladesh’s adaptability in responding to international trade challenges. By reshaping its supply chain and focusing on quality, the country aims to reinforce its RMG sector’s global competitiveness and appeal—while also engaging in policy-level dialogue to navigate tariff constraints.
