Bangladesh eyes US cotton imports to prevent tariff hikes

Bangladesh has initiated cotton imports from the US to deter potential tariff increases on its exports, says foreign affairs advisor Touhid Hossain. He made this statement at a workshop on cotton cultivation, jointly organized by the Economic Reporters Forum (ERF) and the Bangladesh Cotton Ginners Association on March 17.

Hossain stated although the US has not yet imposed additional tariffs on Bangladesh, there is still uncertainty. He emphasized that importing cotton from the US while continuing to export ready-made garments could discourage any potential tariff hikes. He also revealed that a decision on recognizing cotton as an agricultural product and providing subsidies to boost local production will be made within three months. Additionally, he instructed NBR member Moazzem Hossain to expedite the withdrawal of the 4 percent advance income tax on domestically produced cotton.

Moazzem Hossain stated that discussions are ongoing to introduce bonded warehouse facilities for cotton imports. On Bangladesh’s LDC graduation in 2026, Hossain stressed the need for preparation instead of delay. He assured that the government is committed to meeting the EU’s conditions for securing GSP Plus benefits.