Bangladesh has decided to gradually replace Indian cotton with U.S.-produced cotton following a new U.S.–Bangladesh trade agreement signed on Monday. According to government officials, the deal is expected to significantly improve Bangladesh’s access to the American market. Under the agreement, Bangladesh will face a 19% tariff on exports to the U.S., which is lower than some competitors like Cambodia and Indonesia. More importantly, the tariff will drop to zero if Bangladeshi textile producers use U.S. cotton or manmade fibre, giving the sector a strong incentive to shift suppliers.