Dhaka, Feb. 11 -- The Bangladesh-US agreement that reduces the reciprocal tariff and introduces duty-free facilities for using American inputs to manufacture garments will boost local apparel exports to the country's single-largest destination, industry leaders say.

They, especially spinners, however, say as US cotton is higher-priced, of superior quality, and requires a long lead time to bring into the country, required measures, including setting up a warehouse at the Chittagong Port, to ensure proper valuation and traceability of US-origin raw materials used in production are essential.

The Agreement on Reciprocal Tariff between the two countries signed on Monday reduces the reciprocal tariff imposed on Bangladeshi products in the US...