Kazi Zahidul Hasan :Business leaders on Sunday expressed deep concern and frustration over the US government’s decision to exclude Bangladesh from the GSP facility.They said, the decision of the US government has tainted Bangladesh’s image as a good trade partner which may leave a long-term impact on the country’s economy, and particularly on external trade. The US government has recently renewed the General System of Preferences (GSP) for 122 countries, but Bangladesh has been left out of the list despite fulfillment of most conditions set by the US to reinstate the facility. The US had earlier suspended it over safety concern in local garment factories. Terming the decision as ‘harsh’ one, President of the Exporters Association of Bangladesh Abdus Salam Murshedy said, the US move came at a time when we did a lot to improve the working condition of the country’s garment sector. “The government, entrepreneurs and buyers were engaged to meet the conditions set by the US government to regain the GSP facility. We already fulfilled most of the conditions as per their requirement. But the US authorities finally cancelled the trade preference for Bangladesh. It came as an utter frustration to Bangladesh’s business community,” he added. Salam Murshedy mentioned that the move may discourage US and other foreign investors coming from the US to Bangladesh creating a long-term negative impact on the economy. On the other hand, he said, the US has provided the same facility to most of the South Asian nations that will make their products further competitive in the US market. Now on, Bangladeshi products will face tough competition in the same market after paying high duty and taxes to the US authorities.The EAB President further said, being a Least Developed Country (LDC) Bangladesh deserves to the duty facility which the US is continuing to others. “So, the US government’s decision to discontinue the GSP facility for Bangladesh seems to go beyond justice,” he commented.Terming the US decision ‘unfortunate,’ DCCI President Hossain Khaled told The New Nation yesterday that it may have a moderate effect on the prospect of future export growth of the country in the US market in short-term basis, but, in the long-run, it may have a huge impact on the bilateral and multilateral trade and on investment front between the Bangladesh and developed countries.He also said Bangladesh makes immense progress in establishing workers rights and workplace safety in garment factories in line with the US conditions. The government has also amended the Labour Law and signed ILO-led government-employer-worker tripartite agreement and formed ministerial committee to ensure compliance in garments factories. “When most of the time-bound conditions are fulfilled, the US authorities came up with the cruel decision of scrapping the GSP facility ultimately denying all the progress regarding compliance issues,” he added.When asked, Hossain Khaled said that the US move could create a strain bilateral relation between the two countries and hurt their further trade and investment prospect.The DCCI leader also urged the government to gear up its diplomatic channels to convince the US government to reinstate the GSP facility for Bangladesh. “The US decision will create image crisis for Bangladesh in global arena and consequently leave a negative impact on its future export prospects to developed countries,” former Vice-President of BKMEA Mohammad Hatem told The New Nation on Sunday.He added: Our exports could decline in the US market following the US move. And if it happens, it could lead to closure of many export-oriented factories here. When asked, Hatem pointed out that other developed nations including the European Union and Japan provide tariff benefits to Bangladesh’s garments under respective GSP schemes. If the US practice is followed by them, Bangladesh’s entire export sector would face a disastrous impact. He, however, called upon the US government to revive the GSP for Bangladeshi exportables considering the commendable progress that the local garment industry has already achieved to install safety-standards and labour rights. “We hope the US authorities will restore the GSP facility for Bangladesh as a gesture of a warm bilateral trade and diplomatic relations existing between the two friendly nations,” he added.
