By Admin 
Textile Stocks: Bangladesh has signed a trade deal with America before the general elections to be held on February 12. Under this deal, the American tariff on Bangladesh has been reduced to 19 percent from the earlier 20 percent. According to this agreement between the two countries, America will give exemption on textile and apparel products of Bangladesh.
The deal also mentions that imports of Bangladeshi textiles and readymade garments made from American cotton and man-made fibers can be kept out of the scope of tariffs. It is obvious that this will boost Bangladesh’s textile exports to America. America is already a big market for Bangladesh’s textile industry.
Big fall in shares
Many textile stocks like KPR Mills, Vardhaman, Welspun Living and Trident crashed during stock market trading on Galwar. A decline of 2.85 percent was seen in the shares of KPR Mill, 4.92 percent in the shares of Vardhman Textiles, about 2 percent in the shares of Welspun Living and about 3 percent in the shares of Trident.
What are investors afraid of?
Under the trade deal with America, tariff at the rate of 18 percent will be imposed on Indian textile exports. Whereas it has been said that Bangladesh will be given special relief with zero tariff. In such a situation, investors fear that they will have to face a tough challenge from Bangladesh’s textile products in the American markets because it is obvious that if Bangladesh exports Bangladeshi garments using cotton or fiber to America, then it will get the facility of zero tariff, whereas there is no such exemption on India’s textile exports. He will have to pay tariff at the rate of 18 percent. In such a situation, Bangladeshi products will become cheaper than Indian products in the American markets. This will increase the demand for Bangladeshi apparel instead of Indian apparel there.
Investors also fear that if Bangladesh gets the facility of zero tariff on the use of American cotton, then Bangladesh will buy cotton from America instead of India. This will cause loss to farmers and spinning mills involved in cotton cultivation in India. Let us tell you that Bangladesh is a big buyer of cotton from India.
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