United Commercial Bank (UCB)

Dhaka, Sunday

05 February 2023

Business Insider Bangladesh

Dhaka seeks lifting of cotton import duty from US

BI Report || BusinessInsider

Published: 18:06, 20 January 2023  
Dhaka seeks lifting of cotton import duty from US

Photo: Collected

The United States is one of the major cotton-producing countries in the world and it should lift import duty on cotton for Bangladesh to boost the country’s Readymade Garment (RMG) sector amid ongoing global setbacks.

Commerce Minister Tipu Munshi on Friday made the plea while addressing a function held at a hotel in Dhaka organised by Bangladesh Cotton Association in collaboration with Bangladesh Textile Mills Association ahead of the Fourth Global Cotton Summit 2023.

Bangladesh is the second largest garment exporter in the world and 82 percent of total export earnings come from the RMG sector, said the commerce minister.

Besides, the US is one of the biggest markets for Bangladesh’s RMG goods, Munshi said, adding, “It will benefit us if the US grants Bangladesh duty-free trade facilities to import cotton for its use in the RGM factories.”

Bangladesh has to import nine billion belts of cotton every year to meet the demands for the RMG sector while only 1.50 lakh belts of cotton is produced locally which is only 1.6 percent of the total demand, he said.

Considering the situation, the US can provide duty-free cotton import facilities to Bangladesh to help boost the RMG goods in the world market, Munshi said.