US: Bangladesh must do more to get back GSP

Bangladesh must do more to improve worker rights and worker safety to get back the country’s Generalized System of Preferences (GSP) trade benefits.

An interagency review led by the Office of the US Trade Representative (USTR) has said this in its report.

The report said: “GSP action plan review finds more needs to be done to improve worker rights and worker safety in Bangladesh.”

It also said: “Bangladesh has made some important progress, but must do more to address the worker rights and worker safety issues that led President Obama to suspend its GSP trade benefits in June 2013.”

During suspension, the US administration provided Bangladesh government with an Action Plan which provides a basis for the President to consider the reinstatement of GSP trade benefits.

“The Obama Administration has been engaging the Bangladesh government and stakeholders over the past year to press for changes to address the worker rights and worker safety issues,” said United States Trade Representative Michael Froman.

As the basis for its determination, the Administration reviewed progress by the government of Bangladesh in implementing the specific measures listed in the Action Plan.

The review found that there has been progress in some areas.

For example, since June 2013, the government of Bangladesh has registered approximately 120 new unions in the garment sector, has dropped pending criminal charges against labor activists, is cooperating with the private sector initiatives, the “Alliance” and the “Accord”, on plans to inspect the thousands of factories in the ready-made garment (RMG) sector, and has reportedly suspended operations in approximately 20 factories found to be in imminent danger of structural failure or other catastrophic accident, the report said.

However, the review also found that the government of Bangladesh has not yet implemented substantial parts of the Action Plan.

The government is behind schedule in carrying out many hundreds of critical safety inspections in garment factories, as well as meeting its commitments to hire additional inspectors.

The government has also been slow to respond to continuing reports of harassment and violence against labor activists.

The review concluded that the government needs to develop a credible and effective mechanism for responding to and addressing allegations of unfair labor practices.

Since the suspension of GSP, the government has also not advanced the labor law reforms called for in the Action Plan, including changes to ensure that workers are afforded the same rights and protections in Export Processing Zones as in the rest of the country.

In addition to engaging regularly with the government of Bangladesh, the US government is also closely coordinating with the European Union, the International Labor Organisation (ILO) and other international partners under the July 2013 Sustainability Compact on worker rights and factory safety in Bangladesh.

Ahead of the Compact’s one year anniversary, the US Government notes Bangladesh’s progress towards fulfillment of some of the commitments in the agreement and welcomes continued positive collaboration between all signatories in support of Bangladesh’s adoption of international standards in worker rights and safety.

The review was conducted by the USTR-chaired GSP Subcommittee of the interagency Trade Policy Staff Committee, which includes representatives of the Departments of State, Labor, Commerce, Agriculture, and the Treasury, as well as USAID.

The GSP Subcommittee expects to carry out its next review of Bangladesh’s progress on the GSP Action Plan in December 2014.