US Trade Representative (USTR) Jamieson Greer and Argentina’s Minister of Foreign Affairs, International Trade and Worship Pablo Quirno yesterday signed the United States-Argentina Agreement on Reciprocal Trade and Investment (ARTI) in Washington, DC.

The agreement lowers long-standing trade barriers and provides significant market access for American exporters, ranging from motor vehicles to a wide array of agricultural products, said Greer in a statement.

USTR Jamieson Greer and Argentina’s Minister of Foreign Affairs, International Trade and Worship Pablo Quirno yesterday signed the US-Argentina Agreement on Reciprocal Trade and Investment in Washington, DC.
Argentina will provide preferential market access for US goods exports, including chemicals, machinery, information technology products and a wide range of agricultural products.

Argentina will provide preferential market access for US goods exports, including chemicals, machinery, information technology products and a wide range of agricultural products.

It has also committed to addressing structural challenges cited in the Office of the USTR 2025 Special 301 report, including patentability criteria, patent backlog and geographical indications, as well as to working towards aligning its intellectual property regime with international standards.

Fibre2Fashion (DS)

What began as a diplomatic triumph is now rewriting commercial equations, and leaving India’s competitors under pressure. India’s much-publicised Free Trade Agreement with the European Union, grandly billed by industry as the “mother of all agreements,” had barely been finalised when another seismic shift followed. In a decisive move, the United States has decided to cut tariffs on Indian exports from a steep 50 per cent to a far more manageable 18 per cent.

India-EU free trade agreement and the recent tariff cut by the US to 18 per cent positioned India among Asia’s most competitive apparel exporter destinations.
Competitors such as Bangladesh, Vietnam and Malaysia face higher duties, raising concerns over lost competitiveness, especially for garments, and prompting urgent calls for policy and diplomatic action.

Together, the twin breakthroughs have dramatically altered the equation, redrawing the competitive landscape, even as India’s rivals monitor the developments closely.

Vietnam is subject to 20 per cent duties, Malaysia 19 per cent, Bangladesh 20 per cent, Cambodia 19 per cent and Thailand 19 per cent.

In India, the mood is unmistakably buoyant. The long-standing uncertainty over market access, tariffs and trade preferences has given way to something the industry has not felt in a while: clarity and confidence.

Dharani Kanth Koganti, director of the Kakatiya Mega Textile Park in Telangana (India), speaking to Fibre2Fashion, summed up the prevailing sentiment when he described the 18 per cent US tariff combined with the EU FTA as a decisive turning point, one that finally puts lingering doubts to rest.

From Tiruppur, India’s knitwear nerve centre, Ess Tee Exports chairman N Thirukkumaran echoed the optimism, noting that India now sits among the most competitive Asian exporters on the tariff front, setting the stage for substantial export growth.

While Indian factories hum with optimism, competitors are assessing the situation rather cautiously, and Bangladesh, long regarded as the undisputed low-cost champion of global garment exports, is not an exception. As per media reports, the country’s export sector has come under renewed pressure following the US decision to reduce tariffs on Indian goods, a move that came close on the heels of India’s EU agreement signed on January 27.

Trade experts in Dhaka have reportedly warned that the widening tariff gap could seriously undermine Bangladesh’s readymade garment exports to the US, a market already marked by intense price sensitivity.

The anxiety does not stop there. Looming large is the prospect of losing preferential access to the European Union after 2026, when Bangladesh graduates from Least Developed Country status.

Europe is Bangladesh’s single largest export destination, and the possible erosion of duty-free access under the Generalised System of Preferences has raised serious concerns. The risk is compounded further by the India–EU agreement, covering a market of nearly 2 billion people and a quarter of global GDP, which will remove tariffs on 90 per cent of Indian goods—expanding to 93 per cent within seven years.

Even if Bangladesh manages to qualify for GSP Plus post-graduation, industry stakeholders cautioned that garments are unlikely to enjoy duty-free treatment under the current framework.

Speaking to the media, a senior official of a major Bangladeshi trade body underlined that while India faces a reciprocal tariff of just 18 per cent in the US, Bangladeshi exporters are burdened with a combined duty of around 35 per cent—15 per cent in customs duties and another 20 per cent as a reciprocal tariff.

That differential, industry insiders cautioned, threatens to tip buyer preference decisively in India’s favour. Calls are thus growing louder for Dhaka to urgently ramp up diplomatic engagement and policy support to prevent any erosion of export competitiveness.

Meanwhile, in the wake of India’s trade agreement with the EU, a prominent Bangladeshi exporter reportedly dismissed the notion that Bangladesh has no competitors, arguing that India remains a serious low-cost rival while claiming that wages are low in many Indian states.

With India leveraging back-to-back deals to widen its export advantage, competitors are now being compelled to rethink strategies and realign their game plans in line with the changing dynamics or risk being left behind.

Fibre2Fashion News Desk (DR)

The India–US trade deal, which lowers US tariffs on Indian products from 50 per cent to 18 per cent, is being seen by textile industry leaders as a decisive inflection point that restores competitiveness, revives stalled orders and strengthens India’s long-term manufacturing and export prospects.

Rajeev Gupta, Joint Managing Director, RSWM Limited, said the tariff reset gives India a clear pricing edge. “The sharp reduction from 50 per cent to 18 per cent provides India with a 2 per cent cost advantage over competitors such as Bangladesh and Vietnam, significantly strengthening global competitiveness,” he said. Gupta noted that delayed US orders, which account for nearly 28 per cent of India’s textile exports, are already seeing signs of revival. “Combined with internal duty exemptions and a Budget that meaningfully strengthens domestic value chains, the timing is ideal to accelerate exports, support MSME employment and improve margins in the coming quarters,” he added.

The India–US tariff reset sharply improves India’s price competitiveness in the US market, triggering early signs of order revival and exporter confidence.
Combined with the EU deal and Budget support, it creates a rare alignment for export-led growth.
Real gains will hinge on rapid capacity expansion, productivity gains, and stronger ESG compliance.

Offering a broader industry view, Dr Rajesh Bheda, Managing Director of consulting firm RBC, said the announcement has lifted exporter morale after months of pressure. “This is a much-needed and long-awaited relief for textile and apparel exporters, many of whom absorbed losses over the last six months to retain US customers,” he said. However, he quickly added that clarity will emerge once the US executive order and fine print are released. Bheda said the industry has received three strong positive signals within days—the India–EU deal, Budget support for textiles, and now the India–US trade agreement. He stressed that to fully capitalise on these opportunities, manufacturers must rapidly expand capacity, improve speed to market, adopt digital and smart manufacturing, enhance productivity and strengthen ESG compliance.

From a sustainability and brand perspective, Avani K Chandran of House of Ara said the trade deal is particularly positive for value-added textiles. “Improved market access will allow Indian brands and manufacturers to showcase craftsmanship globally, while encouraging stronger compliance, transparency and long-term trade partnerships,” she said.

The agreement is also expected to unlock investments in large manufacturing ecosystems. Dharani Kanth Koganti, Director of Kakatiya Mega Textile Park (KMTP), said the 18 per cent tariff, combined with the EU FTA, removes prolonged uncertainty for investors. “This is the ultimate unlock for the PM MITRA vision. While policy created capacity, this deal provides the global competitiveness needed to fill it,” he said, adding that Telangana, as the first state with an operational PM MITRA ecosystem, stands to benefit immediately.

Textile producers echoed similar optimism. Gautam Ganeriwal, Executive Director, Sitaram Spinners Pvt Ltd, said lower US tariffs and efforts to address raw material competitiveness can create a win-win outcome. “A more open and predictable trade environment will revive demand, improve supply chain confidence and support employment across the textile value chain,” he said.

From the fabric segment, Suketu Shah, CEO, Vishal Fabrics Ltd, said the agreement restores India’s standing in the US market. “The reduction of tariffs to 18 per cent makes India more competitive, especially in manufacturing. The deal opens opportunities for diversification and faster scale-up, though the impact will depend on implementation speed and cost management,” he said.

Fibre2Fashion News Desk (KUL)