Staff Reporter :
Despite Bangladesh’s remarkable progress in labour and safety standards over the last two years, the country has been excluded in the renewal of Generalized System of Preferences (GSP) of the Untied States, said business leaders.
Expressing severe frustration Commerce Minister Tofail Ahmed told journalists on Tuesday that Bangladesh had already fulfilled 16 conditions set by the US for reviving the GSP facility but the US is not restoring it yet due to what he said for ‘political reason’ only.
He said, “I do not support taking any steps for reviving the GSP facility, we have nothing more to do in this regard”.
The commerce minister said the Washington did not include Bangladesh in its updated list of eligible countries for the GSP facility.
When contacted President of Bangladesh Garment Manufacturers and Exporters Assocation (BGMEA) Md. Atiqul Islam told The New Nation last night, “Exclusion of GSP facility is very unexpected. We have upgraded most of the factories to get the facility. There is no accord or alliance in any part of the world. But we have to work under their influence. It is very unfortunate.”
Expressing concern over not restoring GSP facility for Bangladesh, the BNP said that it is very much regrettable. For this, the party blamed the government for its diplomatic failures.
Briefing a press conference at the party office at Nayapaltan in the city, party spokesman Dr. Asaduzzaman Ripon said the government has to explain why the GSP facility was not restored.
“Following this non-restoration of the4 GSP facility, the export of the country’s largest item
‘readymade garments’ will be badly affected,” Ripon apprehended. “Bangladesh is a highly compliant country. We have implemented almost hundred per cent of the action plan forwarded to us by the US,” said Commerce Secretary Hedayetullah Al Mamoon.
“There is some minor progress to be achieved. We hope that in the future, our sincere efforts will be recognised and reflected in their (US) decision-making with regard to the GSP,” Mamoon added.
Now Bangladesh will have to wait for another two years to see if the US administration changes its mind at all.
On June 29, US President Barack Obama signed into law a crucial bill reauthorising the GSP for 122 nations through 2017, according to Office of the United States Trade Representative (USTR).
The US decision will also put Bangladesh in a tight corner, as its competing neighours such as India, Pakistan, Nepal, Sri Lanka, Bhutan and Afghanistan are eligible for the same benefits
Now Bangladesh will have to wait for another two years to see if the US administration changes its mind at all.
The US decision will also put Bangladesh in a tight corner, as its competing neighours such as India, Pakistan, Nepal, Sri Lanka, Bhutan and Afghanistan are eligible for the same benefits
The office of the US Trade Representative (USTR) website says the facility is still suspended for Bangladesh and that it is closely observing the country’s labour rights scenario.
President Barack Obama suspended Bangladesh’s GSP facility on June 27, 2013 in the aftermath of over 1000 workers’ death in Rana Plaza collapse.
The decision will likely have little impact on Bangladesh’s multi-billion dollar readymade garment export as it was not included under the GSP. Bangladesh is the second largest exporter of RMG products after China but the sector has been plagued by accidents and allegations of low pay.
The US said the 2013 suspension was aimed at ‘pushing Bangladesh improve’ working conditions and workplace safety in its factories.
Under the GSP, 5000 types of Bangladeshi goods enjoyed duty-free access in the US market. Bangladeshi businesses exported goods worth around $34.7 million to the US in 2012 and $2 million in duties was waived.
“I don’t see reasons other than political ones,” Tofail Ahmed said. “Obama has praised Bangladesh and there’s no reason for us not getting this GSP facility,” he said.
As indicated earlier in January this year’s review, Bangladesh has been excluded in the renewal of Generalized System of Preferences (GSP).
In January this year’s review, the USTR recognized progress but urged that more needs to be done on worker safety and rights.
The USTR-led interagency review concluded that while Bangladesh has made progress over the last year to address fire and building safety issues in the ready-made garment (RMG) sector, further progress is needed, including to address serious worker rights issues, before the reinstatement of Bangladesh’s trade benefits under the GSP can be considered.
President Obama suspended Bangladesh from GSP in June 2013 based on Bangladesh’s failure to meet statutory eligibility requirements related to worker rights.
GSP is a trade scheme under which the US allows import of more than 5000 goods from 122 least developed and developing countries with lower or zero-duty benefit.
Under the new law, duty reductions under the GSP program will begin 30 days after the law is enacted, which took effect on July 29, 2015.
It also extends duty reductions retroactively for any goods entered in between July 31, 2013, and the effective date.
Bangladesh experienced two industrial disasters — Tazreen Fashions fire and Rana Plaza building collapse – that forced the US to suspend GSP for Bangladesh in June 2013, citing serious shortcomings in labour rights and workplace safety.
In the meantime, Bangladesh has amended its labour law to strengthen aspects of freedom of association, collective bargaining and occupational health and safety.
Besides, it also recruited and trained new factory inspectors, and made fire and structural safety assessments and posted online factory safety information. Since January 2013, about 300 new trade unions have been registered. Similarly, the Accord and the Alliance, the two private sector initiatives, assessed the structural and fire safety of over 2000 garment factories.
