GSP still a day dream

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Abu Sazzad :Bangladesh is unlikely to get back the Generalised System of Preferences (GSP) facilities soon, as the USA Congress has not considered Bangladesh’s name for giving back GSP facilities in its latest move, insiders said.According to trade official, the US Congress is going to place a bill in the coming weeks renewing its GSP scheme for 122 developing and least developed countries except Bangladesh.Trade officials’ fear that Dhaka’s export to Washington might face tough competition if Bangladesh is finally excluded from the list of eligible beneficiaries of the said facilities.The US government on June 27 in 2013 suspended the GSP for Bangladeshi products following deadly Rana Plaza collapse and fire incident at Tazreen Fashions citing serious shortcomings in workplace safety and workers’ rights.Commerce Minister Tofail Ahmed repeatedly said that within a short time the country would get back the GSP facilities. “We have almost compiled with all the conditions set by the European Union and the USA. The conditions include improving the working conditions in RMG factories, attaining international labour standard and ensuring labour rights”, said Tofail.The minister said, as such the US should withdraw the restriction on the GSP facilities. Even if the restriction is not withdrawn, Dhaka’s export to Washington would not be hampered.US Ambassador Marcia Stephens Bloom Bernicat assured of assisting garment sector to flourish, but did not clear the issue of GSP. The US envoy came up with the assurance in a meeting with Bangladesh Garment Manufacturers and Exporters Association (BGMEA) leaders recently. In the meeting, Marcia Stephens Bloom Bernicat said that Bangladesh achieved much progress in garment sector. She also said that America would provide all kinds of assistance to Bangladesh garment sector, but Bangladesh should have to ensure the proper use of labour law. Meanwhile, visiting US Under- Secretary of State for Political Affairs Wendy Sherman opined, the working environment in Bangladesh in RMG factories has improved but still more steps are needed.Sherman said, “A lot of progress has been achieved in this regard in the last two years. The government has registered more than 250 new trade unions, created a public online database of factories, and began training more than 100 new labour inspectors, among many other accomplishments.”Sherman further said, “The United States is Bangladesh’s largest single country importer of garments. But our business ties is beyond that. Companies such as Chevron and Coca-Cola are among the many U.S. businesses looking to invest in Bangladesh.”The US secretary has underscored the need for creating a business friendly environment in the country for further expansion of trade relation between the countries.Meanwhile, Commercial Counselor of Bangladesh in Washington SK Aktar Hossain wrote in a recent letter to the commerce secretary that GSP is finally taking a move in the Senate. But there is no good news for Bangladesh.The letter also said, the Senate Finance Committee on April 22 unanimously approved a bill to renew trade preference programmes for sub-Saharan Africa, Haiti and other developing counties. When contacted, Secretary of the Ministry of Labour and Employment Mikail Shipar told that everything had been done in line with the US prescription to ensure labour rights in the country. “We have done our best on Bangladesh perspective. But may be there are some shortcomings in US judgment. Removing those shortcomings is not possible at all,” he said.President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Atiqul Islam told that Bangladesh would not be financially loser if the GSP facility is not given since a small portion, $24 million, of total exports to the US have the tariff preference under the scheme.However, he said, non-withdrawal of the suspension and exclusion of Bangladesh from the list of eligible countries in the renewed scheme will be a matter of image problem for the country. “We have created favourable working environment in the factories, ensured labour rights, and finalised the rules on labour law. We are continuously working in line with the US action plan. Non-withdrawal of suspension of GSP despite our sincere efforts is unfortunate,” said the BGMEA president.

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