U.S. Commerce Consultant Jamieson Greer joined Bangladesh’s Adviser Sheikh Bashir Uddin in signing the U.S.–Bangladesh Settlement on Reciprocal Commerce. Photograph: X/@USTradeRep
Bangladesh will change Indian cotton with U.S.-produced cotton because of the U.S.-Bangladesh commerce deal that was inked on Monday (February 9, 2026), stated a spokesperson for the interim authorities in Dhaka. Chatting with The Hindu completely, Shafiqul Alam, info adviser to Chief Adviser Mohammed Yunus, stated the commerce deal is a “recreation changer” that may present Bangladesh with larger entry to the U.S. market. Main economist Professor Selim Jehan of BRAC College in Dhaka stated the deal has made Bangladesh’s cotton market “enticing” for the U.S. however cautioned that Bangladesh ought to make sure that the U.S. cotton is of top quality.
“We’ve got bought a tariff charge of 19% within the new commerce cope with the U.S., which is nice in comparison with our rivals like Cambodia and Indonesia however a clause within the deal has given us larger benefit because the U.S. has agreed to scale back tariff to zero if our textile producers change to U.S. cotton or artifical fibre,” stated Mr. Alam, describing the commerce deal as a “huge increase” for Bangladesh’s textile sector.
Mr. Alam stated that Bangladesh historically imports cotton from India and Central Asia because it doesn’t produce the cotton or yarns obligatory for its giant textile sector. Nevertheless, this shortcoming has additionally helped it negotiate with the U.S. extra freely as Bangladesh doesn’t have any cotton farmer foyer that might have pressured the federal government. Cotton and cotton yarn provides from India and export of Bangladesh’s textile merchandise to India got here to the highlight in April-Might 2025 when either side imposed tit-for-tat restrictions on the motion of the objects. Bangladesh restricted import of yarn from India by its land ports by an order dated April 13, 2025.
India exported to Bangladesh cotton yarn price $1.6 billion in 2024 and artifical fibre (MMF) yarn price almost $85 million. A considerable quantity of yarn goes by land ports. Bangladesh is among the largest importers of Indian cotton. After relation between the 2 international locations nosedived in July-August 2024, on Might 16, 2025, India imposed curbs on import by land ports of a number of objects which included readymade clothes, the most important export merchandise from Bangladesh to India. Bangladeshi authorities have stated that they are going to now shift focus to the market within the U.S., which is the most important textile marketplace for Bangladeshi producers.
Professor Selim Jehan acknowledged that the commerce settlement has “undoubtedly” created a market in Bangladesh for uncooked cotton from the U.S., but additionally cautioned that the settlement has “restricted Bangladesh as it can stop Bangladesh from exploring rival cotton producing international locations”.
“It seems at first that if Bangladesh produces textile merchandise utilizing uncooked cotton from the U.S., then Bangladesh will get monetary savings because the 19% tariff will likely be diminished to zero. However then, we even have to mix the quantity to buy U.S. cotton with freight fees, transportation, and so on., to see if in the end it quantities to a worthwhile cut price,” Professor Jehan advised The Hindu.
He additional stated that Bangladesh must make sure that the U.S.-supplied cotton matches the cotton from different international locations, together with India and Egypt. “Within the textile sector, the standard of cotton issues probably the most. If U.S. cotton just isn’t on top of things, then even the U.S. consumers might not like our merchandise,” he stated, suggesting that the cotton market in Bangladesh must be watched carefully for a while as textile majors will negotiate with the U.S. to get most benefit out of the deal.
Revealed – February 10, 2026 08:09 pm IST