A high-level delegation from the US Embassy in Dhaka discussed ways to deepen bilateral trade and economic cooperation between the two nations with the leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Wednesday, August 13.
The team had a meeting with BGMEA President Mahmud Hasan Khan and senior leaders of the association at the BGMEA Complex in Dhaka.
The meeting focused on strengthening ties in the ready-made garment (RMG) sector, the backbone of Bangladesh’s export economy, and explored opportunities to expand Bangladeshi exports to the United States under a recent US executive order that allows for a proportional exemption from a new 20% additional duty on garments, provided at least 20% of the raw materials are sourced from the US.
Welcoming the initiative, BGMEA President Mahmud Hasan Khan expressed strong interest from the Bangladeshi apparel industry in leveraging the provision.
However, BGMEA leaders requested clear guidelines on calculating US content and called for transparent, traceable supply chain mechanisms to ensure compliance. They also sought the US Embassy’s support in facilitating these processes.
A key proposal discussed was the establishment of a dedicated warehouse near Chattogram Port to streamline and accelerate the import of US cotton. The facility could be developed as a Bangladeshi-led project, a US-initiated effort, or a joint venture, with participants noting that it would significantly reduce lead times and improve supply chain efficiency.
In addition to cotton, BGMEA leaders expressed interest in importing man-made fibres such as polyester and nylon from the United States, if available from the US textile sector.
Foreign Commercial Service Attaché Paul G Frost committed to coordinating with relevant US government agencies to provide detailed information on availability and potential collaboration.
Discussions also included the possibility of collaboration between BGMEA and the US Cotton Council, with Frost indicating that the embassy would engage with US textile authorities and share feedback with BGMEA.
Energy security was another critical topic. BGMEA leaders highlighted ongoing challenges with domestic gas and electricity supply and expressed hope for future LNG imports from the United States to support industrial stability.
On labour rights, President Khan emphasised that stable labour relations and workers’ welfare are top priorities for the current BGMEA leadership. He informed the delegation that his board has held dialogues with 81 workers’ federations since taking office and is actively supporting legal reforms to align with international labour standards.
The US delegation, comprising Labour Attaché Leena Khan, Foreign Commercial Service Attaché Paul G. Frost, Foreign Agricultural Service Attaché Erin Covert, and Economic Officer Richard Rasmussen, underscored that harmonizing Bangladesh’s labour laws with International Labour Organisation (ILO) and international benchmarks remains a shared expectation, supported by global partners including the European Union.
Both sides agreed on the importance of continued dialogue to prevent miscommunication and ensure sustainable, inclusive growth in the garment sector.
The US delegation also invited BGMEA to participate in SelectUSA 2026, a premier US government investment promotion event, as a platform to connect with American buyers and expand export opportunities.
At the conclusion of the meeting, both parties expressed optimism about the future of US-Bangladesh economic relations, emphasising mutual commitment to trade expansion, supply chain resilience, and responsible industrial growth.