Double Fumigation of US Cotton Is Going to Be Withdrawn

Bangladesh is going to offer the USA revocation of the double fumigation of its cotton. This will encourage local cotton importers to import more US cotton and Bangladesh is going to ask for quota-free US market access.

The proposal states cotton imported from the US will not be fumigated at Chittagong port. This should reduce the lead time for US cotton imports. This proposal will be placed at the second round of the US-Bangladesh High-Level Economic Partnership Consultation, slated to take place on 2 June 2022 in Washington. Bangladesh is also looking to seek easier drug export. Furthermore, they will invite a US technical team to Dhaka to launch a Dhaka-New York direct flight.

This delegation for bilateral talks will be led by Salman F Rahman, Prime Minister’s Private Industry and Investment Adviser. Two meetings were held on 12 April and 19 April to further elaborate on these bilateral talks.

Bangladesh is also looking to increase its import of US cotton. 1 million bales of cotton are expected to be imported in 2022-23, up 43% from last year. This increase is due to increasing orders coming in as China is in lockdown due to Covid-19.

This proposal will lift one of the biggest trade barriers in the US-Bangladesh cotton trade. According to the meetings, the ministry highlighted that Bangladesh has made remarkable progress in compliance in line with recommendations by the US. Labour ministry also highlighted that the country has adopted the “EU National Action Plan” roadmap in consultation with relevant stakeholders. The nine-point action plan includes the introduction of trade unions by amending the EPZ Act. However, Dhaka is yet to promise an EPZ Act amendment allowing trade unions.

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