Bangladesh’s recently signed reciprocal trade agreement with the United States is facing mounting criticism over provisions that analysts say could disproportionately benefit American cotton producers while creating uncertainty for Dhaka’s garment exporters.

According to an analysis published by The Daily Star, the so-called “cotton clause” has emerged as the most contentious element of the February 9 deal between Dhaka and Washington. The clause reportedly waives reciprocal tariffs only for garments made using American cotton, raising concerns within Bangladesh’s $47 billion apparel sector.

Under the agreement, Bangladesh would face a 19 percent reciprocal tariff in addition to the existing most-favoured-nation (MFN) duty of about 16.5 percent, potentially pushing total duties on garment exports to the US to around 35.5 percent without concessions.

The relief, however, applies only to a “to-be-specified volume” of imports, tied directly to the amount of US cotton and man-made fibre Bangladesh purchases. Trade analysts cited in the report warned that the wording of the concession remains unclear, particularly Article 5.3, which outlines a system for “zero reciprocal tariffs” under limited conditions.

Experts cautioned that if neighboring countries such as India receive similar benefits, Bangladesh could lose its competitive edge in the American market. Given that garments account for 86 percent of Bangladesh’s merchandise exports to the US, analysts described the deal as “rushed, unequal, and risky,” urging the government to clarify the textile clause before uncertainty undermines expected gains.