Dhaka, July 13 -- Bangladesh is capable of meeting, to a large extent, the 40 per cent value addition requirement tagged by the USA as far as the garment items like denim and knitwear are concerned. However, some woven products might face a setback.

The US wants a minimum 40 per cent local value addition for ready-made garments (RMG) to qualify for the "Made in Bangladesh" label alongside a 35 per cent tariff on Bangladeshi exports, according to sources.

When asked, Fazlul Hoque, former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the US is seeking at least 40 per cent value addition but it is not clear whether the percentage is the average rate or product-specific.

For example, a garment item ...