The Bangladesh Textile Mills Association (BTMA) has urged for the immediate operationalization of Article 5.3 of the Bangladesh–United States Agreement on Reciprocal Trade (ART). Signed in February 2026, this provision creates a strategic linkage: apparel manufactured in Bangladesh using US-grown cotton and man-made fibers (MMF) qualifies for duty-free access to the American market. During a high-level briefing with US Embassy officials in Dhaka on June 24, BTMA underscored, the current lack of finalized Rules of Origin is creating significant market uncertainty, stifling potential investment in high-value textile production.

Navigating the financing and logistical paradox

While the industry acknowledges the superior quality of US cotton for producing premium, durable fabrics, manufacturers currently face a challenging ‘cost of entry’ barrier. Unlike regionally sourced cotton, which benefits from rapid land-based logistics, US imports require prolonged shipping timelines and significant letters of credit, which tie up vital working capital for mid-sized spinning mills already grappling with liquidity constraints. Showkat Aziz Russell, President, BTMA emphasized, the timely implementation of a Central Bonded Warehouse system, alongside the duty-free tariff mechanism, is essential to mitigate these financial burdens. Industry observers note that successfully bridging this gap would not only diversify Bangladesh’s apparel portfolio into high-margin segments but also fulfill Bangladesh's commitment to purchase $3.5 billion in American agricultural products, including cotton, as outlined in the bilateral trade framework.

A backward-linkage provider for RMG exports

BTMA is the apex trade body representing Bangladesh’s primary textile sector, including spinning, weaving, and dyeing units. It acts as the critical backward-linkage provider for the country’s multi-billion-dollar ready-made garment export industry, focusing on industrial advocacy, trade policy, and enhancing the global competitiveness of domestic fiber and yarn production.