BGMEA seeks clarity from US on duty-free access mechanism under trade deal

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has sought clarification on how duty-free access for garments produced using American cotton will work in practice, following the recently signed trade agreement between Bangladesh and the United States.

BGMEA President Mahmud Hasan Khan raised the question at a meeting with US Ambassador Brent T Christensen at the association's Uttara office in Dhaka today, it said in a statement.

Christensen responded that the Office of the United States Trade Representative (USTR) was currently working on the mechanism.

He added that the agreement was highly positive for Bangladesh, the first country to receive such an opportunity, and that he hoped it would boost American cotton exports to Bangladesh.

The meeting also touched on business uncertainty caused by recent tariff volatility. BGMEA Senior Vice President Enamul Haque Khan flagged the disruption frequent tariff changes had caused for the industry.

Christensen attributed the situation to a recent US Supreme Court ruling, and expressed confidence that stability would return soon.

On energy, the BGMEA president urged American investment in Bangladesh's energy sector to support the country's expanding industrial base.

As a short-term solution, Khan called for US investment in LNG infrastructures, while in the long-term, he deemed US technology and investment necessary to enhance domestic gas exploration and extraction.

Christensen responded positively, saying that US investors would be interested if Bangladesh adopted a stable, long-term energy policy.

The meeting also included detailed discussions on labour law and the proposed new labour ordinance.

The US ambassador noted that labour sector reform has long been an important and enduring issue in trade relations between Bangladesh and the US.

The BGMEA chief said discussions on a proposed labour ordinance covering 145 specific points were ongoing, and that further clarification was needed on certain provisions to ensure transparency.

The BGMEA also proposed easing visa bond requirements and granting long-term visas to garment sector entrepreneurs travelling to the US.

On sustainability, BGMEA Director Sheikh Hossain Mohammad Mostafiz noted that Bangladesh had the highest number of LEED-certified garment factories in the world under the US Green Building Council.

He called for greater American support for the sector's sustainable development.

In response, Christensen suggested closer engagement with US brands and buyers as a way forward.