10/02/26, US&BANGLADESH deal

Congress has criticised the US–Bangladesh trade deal, calling it “bad news for India.” In a tweet, the party highlighted the difference in tariffs between Indian and Bangladeshi garments, stating, “US tariff on Indian garments/apparel: 18%. US tariff on Bangladeshi garments/apparel: 19%, but with a ZERO-duty (0%) access clause that India does not have.”

The party added, “This means garments made in Bangladesh using US cotton and man-made fibres will enter the US market at ZERO tariff.” Congress argued that the clause gives Bangladesh a clear advantage in exporting garments to the United States.

Congress also pointed out the potential impact on Indian cotton exports, saying, “Bangladesh is currently a major buyer of Indian cotton, but this deal incentivises Bangladesh to shift to US cotton to avail ZERO-DUTY benefits.” The party further said in the X tweet that Indian cotton farmers and yarn spinners could face negative consequences if Bangladesh reduces its reliance on Indian cotton.

Highlighting the effect on the domestic garment industry, Congress tweeted, “India already competes with Bangladesh in garment exports. This clause delivers a double blow: it hurts Indian cotton farmers and yarn spinners, it makes life much harder for Indian garment exporters.”

The Congress party in its X post further warned that textile hubs across India could be affected, adding, “Major textile hubs like Tirupur, Surat, and Panipat will suffer: 18% tariff disadvantage in the US market, risk of losing Bangladesh as a key buyer of Indian cotton and yarn.”

Congress concluded by underlining the broader consequences for the sector, stating, “This trade deal weakens India's textile industry and puts millions of livelihoods at risk.”