Context
Bangladesh plans to switch its cotton imports from India to the U.S. following a new U.S.–Bangladesh trade pact.
U.S.–Bangladesh Trade Pact
• A new U.S.–Bangladesh trade deal was signed, described as a “game changer” by Bangladesh’s interim government adviser.
• U.S. will reduce tariff on Bangladeshi textile products to 0% if Bangladesh shifts its raw material sourcing to U.S. cotton or U.S. man-made fibre (MMF).
• Bangladesh supports this shift because the U.S. cotton quality is high and provides better market access to USA.
Data from the Article
India exported to Bangladesh:
• Cotton yarn worth $1.6 billion in 2024
• Manmade fibre yarn worth nearly $85 million in 2024
Cotton
• Cotton is a kharif crop (sown June–July, harvested Oct–Jan).
• Requires warm climate and light, well-drained soil (black soil).
