Bangladesh is strategically pursuing cotton imports from the United States to mitigate the risk of increased tariffs from the country, said Md Touhid Hossain, Foreign Affairs Adviser at a workshop focused on boosting domestic cotton cultivation.

This initiative will help foster a trade relationship that discourages the US from imposing additional tariffs on Bangladeshi goods, particularly ready-made garments, he added.

Imposition of tariffs by the US on various countries since the advent of Trump administration, and while Bangladesh has yet to face additional levies poses risks for the country, Hossain acknowledged

Bangladesh’s strategy of importing cotton from the US is seen as a diplomatic move to strengthen trade ties and reduce potential future trade barriers.

The Bangladesh Government also plans to classify cotton as an agricultural product and offer subsidies to encourage domestic cultivation, thereby reducing dependence on imports. Hossain pledged a decision on this matter within three months.

Furthermore, Hossain urged the National Board of Revenue (NBR) to eliminate the 4 per cent advance income tax (AIT) on locally produced cotton. Addressing Bangladesh's scheduled graduation from Least Developed Country (LDC) status in 2026, Hossain dismissed calls for postponement, emphasizing the need for businesses to prepare. He expressed confidence that the three-year grace period following graduation, during which duty-free benefits will continue in regions like the European Union, will provide sufficient time for necessary adjustments.

Regarding the pursuit of GSP Plus benefits from the EU, Hossain affirmed Bangladesh's commitment to meeting the required conditions, ensuring continued favorable trade access post-graduation. The focus is on preparing for the future, rather than delaying inevitable transitions, to maintain and enhance Bangladesh's position in the global market, he said.