Bangladesh is advancing efforts to reduce its trade deficit with the United States by allocating 600 acres in the Mirsarai economic zone for a cotton warehouse, officials said.
Mirsarai is a town in Chattogram in southern Bangladesh
Commerce Secretary Mahbubur Rahman said the facility will be developed by American and local entrepreneurs to speed up cotton imports.
Currently, Bangladesh imports about $370 million worth of U.S. cotton annually, making up 7 percent of total cotton imports.
Showkat Aziz Russell, president of the Bangladesh Textile Mills Association, expects imports to rise to $1 billion by fiscal year-end, aiding trade balance improvement.
Garment exporters seek increased use of American cotton due to favorable U.S. tariff rules, which waive a 20 percent tariff if products contain at least 20 percent U.S. cotton.
Despite higher prices, local industry supports expanded imports. Challenges remain as some mills face working capital shortages.
This is a strategic move for Bangladesh, as the United States remains the country’s largest export market. By increasing American cotton imports, Bangladesh aims to strengthen trade ties and support its garment industry, which relies heavily on U.S. demand. The effort is expected to create a more balanced trade relationship and promote long-term economic cooperation between the two nations.