The United States (US) has said the USDA and USTR secured commitments from Bangladesh and Indonesia that will support future US cotton purchases and textile production using American cotton.

Bangladesh will receive a tariff reduction on apparel produced using US cotton and textile inputs, complementing additional tariff elimination wins, an official told UNB referring to the Great American Cotton Plan.

US Secretary of Agriculture Brooke L. Rollins has recently announced the Great American Cotton Plan, a comprehensive USDA initiative to strengthen the cotton farm economy, restore domestic textile manufacturing, expand cotton trade opportunities, and increase demand for products made with American-grown cotton.

The United States Trade Representative's Office (USTR), with the support of US Department of Agriculture (USDA), has scored several ‘tangible wins’ for US cotton producers under the agreements on Reciprocal Trade.

Indonesia agreed to support and facilitate commercial arrangements to import at least 163,000 metric tons of US cotton annually for 5 years and then maintain a minimum level of imports of at least 150,000 metric tons.

US Ambassador to Bangladesh Brent T. Christensen has recently said the agreement on Reciprocal Trade, also known as the ART, is a joint investment in both American and Bangladeshi prosperity. “This agreement allows for a modern, balanced trade and investment partnership.”

The ART includes numerous provisions that will benefit most of the people in this room, he said.

“It preserves Bangladesh’s access to the U.S. market with competitive 19 percent tariffs, down from 37 percent without the agreement, while supporting a level playing field where businesses and workers in both our economies can prosper and thrive,” he said.

“Since 1607, cotton has helped build and sustain rural America. Our farmers grow some of the highest-quality cotton in the world, but over the last several years America’s cotton growers have been crushed by rising costs, unfair foreign competition, and a flood of cheap synthetic products. In 2023, we lost our status as the world's top cotton exporter to Brazil. This change starts today,” said Secretary Rollins.

The Trump Administration is committed to ensuring American cotton once again becomes the fiber of choice with the Great American Cotton Plan - a bold effort to restore profitability for cotton producers, strengthen rural economies, rebuild domestic textile manufacturing, and bring American cotton back into the products families use every day, Secretary Rollins said.

“Supporting natural fibers like cotton also aligns with the Make America Healthy Again agenda as Americans grow increasingly concerned about microplastics and synthetic materials in everyday products. Cotton is natural, breathable, biodegradable, and proudly grown by American farmers - not manufactured from petroleum-based plastics that can shed microplastics into our soil, water, and bodies.”

The announcement came as cotton producers face a fifth consecutive year of negative returns driven by rising input costs, trade distortions, and increasing competition from synthetic materials, according to the USDA.

As part of the plan, USDA will elevate the “Plant Not Plastic” initiative to encourage consumers to purchase products made with healthy natural American cotton fibers rather than synthetic plastic-based alternatives.

Cotton remains one of the most economically significant crops in the United States, supporting producers and rural communities.

USDA estimates every $1 generated at the cotton farm gate creates approximately $15 in direct economic activity across related industries.

However, the cotton industry continues facing severe economic pressure. USDA forecasts producers could lose approximately $2.6 billion across 9 million planted acres during the upcoming crop year.

Since 1980, the number of U.S. cotton gins has declined from 2,254 to 446, while domestic textile production facilities have sharply contracted over the last two decades.

At the same time, nearly 70 percent of the world’s textile fibers are now synthetic, most of them plastic-based materials such as polyester.

The Great American Cotton Plan addresses the challenges through four key pillars - promoting domestic cotton consumption; providing affordable cotton by increasing domestic demand and production; improving cotton trade; and protecting cotton growers from adverse risk.