Bangladesh runs the risk of losing its Generalised System of Preferences (GSP) facilities in the European Union (EU) if it fails to fulfil key EU conditions – trade union rights for workers and greater safety in workplace – within a given timeframe.
EU Trade Commissioner Karel De Gucht issued the threat at the ninth ministerial-level summit of the World Trade Organisation in Indonesia on Wednesday.
Bangladesh had earlier forfeited its special trading status in the US market, at least in connection with a set of non-apparel commodities, for similar shortcomings.
Gucht said Bangladesh would have to achieve significant progress within a fixed timeframe in line with the roadmap to keep the duty-free access to the EU market.
Bangladesh had agreed in July to fulfil conditions laid by the EU following a fire in Tazreen Fashions and the Rana Plaza collapse that killed over a thousand people.
Under the agreement, the EU expects Bangladesh to give workers trade union rights and enhance workplace safety within one year before reviewing its decision.
The EU trade commissioner said the Bangladesh government and EU were working together to improve the working environment in the country’s garment factories.
The work is progressing in keeping with a roadmap, the commissioner said, adding that Bangladesh must take huge strides to retain its GSP status.
Gucht said at present Bangladesh is getting duty- and quota-free access to the EU market on all products except weapons.
The US revocation of the GSP has not affected Bangladesh in any significant manner as the US facility covered only a small variety of commodities that already excluded the country’s foremost export, readymade garments.
But if the EU were to withdraw or suspend the facility, Bangladesh would suffer a huge setback, the commissioner said.
The EU was eager to let Bangladesh retain the preferential status but for that it would have to strictly follow the roadmap, Gucht said.
Source: Bd news24
