SHIFTING SUPPLY CHAINS

The evolving trade dynamics between the United States, Bangladesh and India are poised to reshape the global textile and garment supply Chain, with significant implications for exporters across South Asia.

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The U.S. - Bangladesh Agreement on Reciprocal Trade, signed on February 9, marks a notable shift in Washington's approach to textile imports by committing to establishing a mechanism that will allow certain Bangladeshi textile and apparel goods to receive a zero reciprocal tariff rate. While details on volume thresholds and product categories remain to be finalised, the White House has clarified that eligibility will be tied to the use of U. S. - produced cotton and man-made fibre (MMF) textile inputs. This conditional market access signals a strategic attempt by the United States to secure demand for its raw materials while deepening supply chain partnerships with trusted manufacturing hubs. For Bangladesh, whose export economy is heavily dependent on ready-made garments, the agreement represents an unprecedented opportunity to consolidate its position in the world’s largest consumer market.