Bangladesh's Zero-Duty US Cotton Garment Access: Limited Edge Over India?

• Bangladesh gains zero-duty access for US cotton/man-made fiber garments, seemingly an edge over India in the American market.
• The agreement reduces reciprocal tariffs to 19% but MFN duties (12%) still apply, making total duty 31% for standard garments.
• India's tariff math is around 30% with its interim deal, suggesting a limited 1% gap in reciprocal tariffs.
• Bangladesh's supply chains are EU-centric (63% exports duty-free), with minimal US textile imports ($274 million vs. China's $9 billion).
• Meaningful use of zero-duty access requires costly supply chain restructuring and investment in spinning/fabric capacity, making its impact on US exports likely limited.