Bangladesh is poised to commence cotton imports from the United States as a strategic measure to mitigate the risk of potential tariffs on its exports, Foreign Affairs Adviser Md Touhid Hossain announced on Monday. Speaking at a workshop titled The Potential and Importance of Cotton Cultivation in Bangladesh for Saving Foreign Currency, organised by the Economic Reporters Forum (ERF) and the Bangladesh Cotton Association, Hossain highlighted the significance of this initiative.
“The US government has imposed tariffs on various countries since the Trump administration began,” Hossain noted. “While Bangladesh has continued exporting under these tariff conditions, uncertainty remains regarding the possibility of additional tariffs. By importing cotton from the US and subsequently exporting garments made from it, we hope to create a scenario that will make the US hesitant to impose higher tariffs on us.”
To enhance domestic cotton production, the government plans to classify cotton as an agricultural product and introduce subsidies for its cultivation within the next three months. Hossain also urged Md Moazzem Hossain, Member of the National Board of Revenue (NBR) for Customs, Export, and IT, to take immediate action to abolish the current 4 per cent advance income tax on domestically produced cotton.
Addressing Bangladesh’s impending graduation from Least Developed Country (LDC) status in 2026, Hossain emphasised that businesses should have prepared for this long-anticipated transition rather than seeking extensions. He pointed out that even after LDC graduation, Bangladesh would retain duty-free access to the European Union for an additional three years, providing the business community with ample time to adapt.
Hossain further assured that Bangladesh would meet all necessary criteria to qualify for the Generalised Scheme of Preferences Plus (GSP+) in the European Union.
At the same event, NBR Member Moazzem indicated that discussions were ongoing to expand bonded warehouse facilities across various business sectors, with cotton imports potentially serving as a starting point. He also pledged to submit a proposal to the NBR for the withdrawal of the Advance Income Tax (AIT) on locally produced cotton.
