The Bangladesh Textile Mills Association (BTMA) has sought clarification on several aspects of a clause in the agreement between Dhaka and Washington that provided conditional zero reciprocal tariff access for garments manufactured using American cotton and manmade fibre.

In a letter dated February 18, BTMA President Showkat Aziz Russel wrote to Gary Adams, President and Chief Executive Officer of the National Cotton Council of America, making the request with a view to ensuring smooth implementation and securing mutual benefits.

The trade body representing primary textile millers, encompassing 1,873 mills with cumulative investments exceeding $23 billion, said the deal could significantly expand imports of American cotton while boosting apparel exports to the United States.

It noted that US cotton accounted for around 10 per cent of Bangladesh’s total cotton imports in 2025 and said there was scope to increase that share four to fivefold in the near term.

The BTMA also sought the Council’s support in facilitating constructive engagement with relevant US authorities, including cotton producers, trade bodies, apparel importers’ associations and industry leaders, to operationalise Article 5.3 (textile) in a practical and mutually beneficial manner.

Among the issues on which it sought clarification were the eligibility criteria for synthetic fibre components under Article 5.3 and the consideration of a policy waiver for recycled components, noting that traceability of recycled content used in denim production remains challenging.

Regarding the proposed cap mechanism, the BTMA suggested setting export eligibility at five to six times the value of US cotton imports, observing that $1 worth of cotton typically translates into $5–6 in free-on-board apparel exports.

It also requested clarification on whether the cap would be allocated nationally on a first-come, first-served basis or company-wise, linked to actual cotton imports.

For certification purposes, the BTMA recommended the use of the US Cotton Trust Protocol and proposed a temporary transitional waiver to facilitate an effective launch of the programme.

However, the association said it is advising its members to prioritise the use of US cotton and is preparing to establish a dedicated bonded warehouse facility for American cotton.

A BTMA delegation is expected to visit the United States next month to engage with policymakers and industry stakeholders.