Home Trade A Strategic Solution for Bangladesh Apparel.

A Strategic Solution for Bangladesh Apparel.

by Bangladesh in Focus

Cotton farmers in the US have suggested establishing a direct connection with clothing manufacturers in Bangladesh. This aims to protect Bangladesh’s clothing exports from increasing tariff challenges. During a strategic dialogue in Dhaka, organised by AmeriBangla Corporation, leaders from Bangladesh’s ready‑made garment industry and US cotton growers explored a farm‑to‑factory supply chain that is simpler, cheaper, and more traceable than the current model. AmeriBangla’s CEO Aswar Rahman emphasised that US cotton costs just 5–6 cents more per pound than cotton from India, West Africa, or Brazil. But its low waste rate—under 2%, compared to about 10% from other sources—can significantly reduce production loss and boost efficiency. That traceability and quality edge also boosts compliance for Western buyers. In fiscal year 2025 to date, US cotton comprises just 6% of Bangladesh’s total cotton imports, down from previous years. By enabling direct purchases from American farmers, garment makers can bypass expensive middlemen, lock in stable prices, and enjoy consistent supply. US farmers in turn could gain stronger market presence and political influence in Washington as they support a tariff‑friendly stance toward Bangladeshi exports . Bangladeshi factory owners attending the meeting said they welcome the idea, but insist on firm long‑term pricing contracts to guard against future price swings. AmeriBangla also outlined plans to set up bonded warehouses in Dhaka or Chattogram to hold US cotton duty‑free and launch an overseas showroom to promote “Made with American cotton, Sewn in Bangladesh” garments. The timing of this initiative is important. As US‑Bangladesh trade talks remain unresolved, and exporters face possible duties, having an alliance with US cotton farmers could help sway Congressional opinion. Farmers from southern US states are ready to lobby Congress for tariff relief in exchange for supply deals with Bangladesh’s RMG sector. If the plan moves ahead, selected Bangladeshi spinners and mills may start placing orders as early as the upcoming August harvest. Experts say it may take 12 to 18 months for mills to fully shift to large‑scale sourcing from US cotton, while the bonded warehouse and showroom could be up and running within the year. This direct cotton sourcing model offers Bangladesh’s apparel industry a strategic tool to improve product quality, reduce costs, and build political backing that could protect exports to its biggest market. As trade uncertainties grow, this effort could help Bangladesh stay competitive and strengthen its appeal to buyers in the US.

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