US-Bangladesh Textile Trade Agreement Update
A recent bilateral discussion between the US and Bangladesh highlighted the potential for expanding trade in textile and apparel goods under specific assembly conditions in Mexico with US-formed fabrics. This pertains to goods under HS Chapters 61, 62, and 63, focusing on maintaining fabric identity and limiting value addition abroad.
October 15, 2023
Impact: This could increase trade volume between the US and Bangladesh by leveraging Mexico as an assembly hub, potentially lowering costs for US consumers while maintaining strict origin and assembly rules.
New Compliance Guidelines for US-Mexico-Bangladesh Textile Trade
The US Trade Representative issued guidelines ensuring that textile goods assembled in Mexico with US-cut fabrics, destined for markets like Bangladesh, adhere to strict rules of origin, including no further fabrication abroad except assembly and incidental operations.
September 20, 2023
Impact: Stricter compliance may raise production oversight costs but ensures protection of US textile interests and could strengthen trade ties with Bangladesh under controlled conditions.
Bangladesh Seeks Clarification on US Textile Export Rules via Mexico
Bangladesh has requested clarification from the US on the applicability of tariff preferences for apparel assembled in Mexico using US fabrics, specifically regarding post-assembly processes like garment dyeing and stone-washing under HS Chapters 61-63.
August 10, 2023
Impact: Pending clarification, there may be temporary delays in trade agreements, potentially affecting Bangladesh's apparel export planning to the US market through Mexican assembly.
