The Ministry of Commerce recently published a gazette that relaxed the requirements for required fumigation testing for importing cotton from Western Hemisphere nations or areas, especially from the United States (US).
According to the gazette, we can only import cotton from the USA currently provided we have an SPS (Sanitary and Phytosanitary) certificate and paper from the American authorities stating that the consignment is free of Boll Weevil, a cotton pest that is present in the USA.
Since cotton is not grown in Bangladesh, imports fill practically all of our demand. According to Bangladesh Bank data, during the fiscal year 2021–2022, we imported cotton worth US$10.05 billion from various nations. however, the majority of our cotton is imported.We also import a substantial amount from the USA, Brazil, the CIS, and India. In the fiscal year 2019–20, we purchased cotton from the USA worth US$ 387 million, which was around 7% of our overall global cotton imports; in the fiscal year 2021–2022, it dropped to US$ 290.40 million, which was only 2.89% of Bangladesh’s overall cotton imports. Bangladesh is also the third-largest supplier of clothing to the United States. The value of USA apparel imports from Bangladesh increased by 8.11% CAGR over the previous ten years (2012-2022). The USA’s import of RMG from Bangladesh has increased significantly, particularly following Covid. OTEXA figures show that in 2022, the USA imported clothing worth 9.74 billion dollars from Bangladesh. was 36.38% higher than in 2021.
Prior to this, importing US cotton required an expensive and time-consuming fumigation test on the cotton. The importers must wait an additional 5-7 days to have their cargo cleared from the ports due to this test.
The BGMEA has been actively working to find a solution to the fumigation issue for a while, and we would like to express our sincere gratitude to the Ministry of Commerce and the Honorable Salman F. Rahman, M.P., Advisor to the Prime Minister on Private Industry and Investment for their kind efforts.
We think that the government’s most recent circular will help importers of cotton from the USA do business more quickly, easily, and affordably. Also, as we import more cotton from the States,
American cotton is of high grade and is widely accepted. Overall, it will improve our competitiveness and shorten the export lead time. I appreciate our government for this timely decision, especially our honourable prime minister Sheikh Hasina, whose policies encourage the growth and sustainability of this sector.
To facilitate trade between Bangladesh and the USA, the BGMEA is collaborating with the American Apparel & Footwear Association (AAFA) on a number of topics. We signed a Memorandum of Understanding (MoU) with the AAFA last year with the intention of strengthening Bangladesh’s RMG sector’s competitiveness and facilitating trade access to the US market. Also, we are in conversation with AAFA about submitting a request to the US government to digital labelling should take the role of traditional labelling. Our production costs will go down, and digital labelling will guarantee product transparency and traceability.
For your kind information, I am including a copy of the gazette published by the government of Bangladesh’s ministry of commerce. I’m hoping it will make the whole situation easier for you to comprehend.
