US-Bangladesh Trade Agreement: Textile Industry at a Crossroads
Dhaka, donderdag, 3 juli 2025.
Bangladesh, the world’s second-largest textile producer, is on the verge of closing a crucial trade agreement with the United States. With an export volume of $8.36 billion and 80% of national exports based on textiles, the country is strategically negotiating to prevent potential tax increases ranging from 16% to 37%. The negotiations, scheduled for 8 July, will not only determine the tariff structure but also influence future import strategies. Bangladesh is prepared to make concessions, such as purchasing 14 Boeing aircraft and increasing raw material imports, to secure a mutually beneficial agreement that offers economic advantages to both countries.
Export Volume and Economic Interests
Bangladesh exported goods worth $8.36 billion to the United States in 2024, while the US exported only $2.21 billion worth of goods to Bangladesh [1]. The textile sector plays a crucial role in the Bengali economy, with up to 80% of national export revenues coming from this sector [1].
Negotiation Strategy
To address American trade interests, Bangladesh has proposed concrete measures. The country is willing to make large purchases, including 14 Boeing aircraft, significant quantities of wheat, cotton, petroleum, and natural gas [1]. The negotiations are scheduled for 8 July, aiming to reach an agreement before US customs tariffs are increased from 16% to 37% [1].
Challenges for the Textile Sector
Bengali textile exporters are concerned about potential tax increases. Mahmud Hasan Khan, president of the Bangladesh Garment and Export Association (BGMEA), warned that a further increase in taxes will result in losing American customers [1]. Mohammad Hatem from the wool products association (BKMEA) is more optimistic, suggesting that the tax burden will ultimately affect American consumers [1].