Sun Feb 15 03:22:18 UTC 2026: ### Headline: India Seeks Equal Trade Terms with U.S. Following U.S.-Bangladesh Textile Agreement

The Story: Following the February 9, 2026, U.S.-Bangladesh Agreement on Reciprocal Trade, which grants preferential tariff rates to Bangladeshi textile exports using U.S. cotton and man-made fibers (MMF), India has expressed concerns about the potential disadvantage to its own textile industry. Indian Minister for Commerce and Industry Piyush Goyal announced that India would seek similar facilities to ensure Indian garment and textile exporters also benefit from preferential access to the U.S. market.

Key Points:

  • The U.S.-Bangladesh agreement establishes a mechanism for zero reciprocal tariff rates on certain Bangladeshi textile and apparel goods, provided they utilize U.S.-produced cotton and MMF.
  • Bangladesh imported $16.1 billion of textile inputs in 2024, with $3.1 billion originating from India.
  • India’s textile exports to the U.S. represent approximately one-third of its $16 billion annual garment exports.
  • Bangladesh’s garment exports to the U.S. totaled $7.4 billion in 2024.
  • Indian exporters are seeking clarity on whether the Indian government will waive import duties on U.S. cotton to facilitate compliance with the U.S. requirements.
  • Bangladesh currently exports 63%, or $32.3 billion, of garments to the EU duty free.

Critical Analysis: N/A

Key Takeaways:

  • The U.S.-Bangladesh trade agreement has triggered competitive concerns within the Indian textile industry.
  • India is actively seeking to level the playing field by securing similar trade advantages with the U.S.
  • The future success of the U.S.-Bangladesh agreement hinges on Bangladesh’s willingness and ability to shift its supply chains towards U.S. cotton.
  • Uncertainty remains regarding the practical implementation of these trade agreements, particularly around the sourcing verification process and potential cost implications.
  • The move may pressure the Indian government to re-evaluate its cotton import duties to support its export sector.

Impact Analysis:

  • Short-term: The U.S.-Bangladesh agreement could initially impact Indian cotton and yarn exports to Bangladesh as Bangladesh shifts to U.S. cotton. It will also put pressure on Indian garment exporters who will likely push the Indian government to reduce tariffs on US cotton.
  • Medium-term: If India secures similar trade terms with the U.S., it could bolster its textile exports to the U.S. and maintain its competitiveness in the global market. This would benefit India’s large textile industry, which is a major employer.
  • Long-term: The shift in trade dynamics could reshape the global textile supply chain, with increased reliance on U.S. cotton and potential adjustments in the production strategies of both India and Bangladesh. The overall impact will depend on the specific details of any future U.S.-India agreement and the ability of all parties to adapt to the new trade environment.

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