Bangladesh will get some relief from US tariffs on US cotton garments, said Mahmud Hasan Khan, president of the BGMEA, an organisation of ready-made garment owners.
“President Donald Trump`s latest executive order on counter-tariffs issued on July 31 has provided such an opportunity. However, in this case, 20 percent or more of the total cotton used will have to be imported,” he gave this information at a press conference held at the BGMEA office on Saturday.
Mahmud Hasan Khan said, "We received the matter in Trump`s executive order. After that, we contacted the US administration for a more detailed explanation. We are trying to ensure that the US Customs implements the matter because, this is very important for us. This will also make it possible to reduce our production costs. The price of US cotton will also come down."
The BGMEA president also said, "About 75 percent of our US exports are cotton-based garments. The US tariff-related executive order states that if at least 20 percent of American raw materials (such as American cotton) are used, then this additional 20 percent tariff will not apply. That is, if we use American raw materials, we will get some additional tariff exemptions.”
“We have no room for complacency. Because, the latest US executive order clearly states that US trade or security agreement negotiations with some countries are still ongoing, which if executed, could further reduce the tariffs of these countries. Therefore, Bangladesh has to continue the negotiations,” the BGMEA leader continued.
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