EU`s threat to scrap duty free export

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THE European Union (EU) has asked Bangladesh to further improve the country’s labour standard least to avoid suspension of duty free trade privileges. But it appears quite unjustified at a time when Bangladesh has significantly allowed Trade Union to workers at factory level to represent their problems.
It appears that the EU in a letter to Bangladesh Embassy in Brussels has cautioned that it will remove duty-free market access for Bangladesh’s exports to the 28-nation block it now enjoys if workers’ condition does not further improve. We will have to pay the 12.5 percent duty on export, which will sharply reduce our competitiveness mainly for RMG exports to the EU market with severe backlash in the domestic sector.
The letter called upon Dhaka for effective implementation of four recommendations made by International Labour Organisation (ILO) last year for improvement in workers’ right to trade union.
There is no doubt the RMG sector in Bangladesh has undergone a significant transformation in terms of renovation of factories, workplace safety and allowing workers to organize and bargain with employers as per ILO’s conditions. Since late 2103, considerable efforts are underway to enhance the capacity of and collaboration between workers, owners and regulatory authorities of the government for improving workers’ safety and Trade Union rights. It is evident that workplace fire and such other accidents leading to death of workers have already significantly declined.
Buyers’ inspection teams are at work with Bangladesh garment factories to certify their work conditions and safety standard. But as per EU opinion workers should have more right to bargain including the right to strike and run network activities between factories in a particular locality and those in Export Processing Zones.
It appears that EU is showing excessive concern about workers’ rights in the backdrop of clashes between factory owners and workers in recent past and the issue is dominating discussion of visiting EU delegation now in Dhaka. Our factory owners are concerned about the growing pressure and threat to suspend the duty-free market access if the government does not immediately remove the remaining bottleneck to Trade Union activities. It goes without saying most factory workers are now having Trade Union bodies at their workplace registered with competent authorities and representing workers in talks with owners and government at different level. But we must say the EU authorities must not ignore much sensitivity in Bangladesh context.
Since the EU offers duty GSP facilities to Bangladesh it can reasonably raise concern and we believe that Bangladesh will do everything to remove their legitimate concern. But using threats before ending discussion is not the right way of resolving issues on the table. We hope there will be an amicable settlement of the problem.

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