The European Union (EU) on Sunday said a decision to withdraw the EU GSP for Bangladesh must be avoided, as it would have far-reaching consequences for its jobs and economy.
“The GSP provided by the EU benefits all products from Bangladesh under its Everything But Arms (EBA) scheme. This means that a decision to withdraw the EU GSP for Bangladesh must be avoided, as it would have far-reaching consequences for jobs and for the economy,” said an EU release.
The EU wishes to remain engaged with Bangladesh so that it can preserve the preferential access to the EU market which has greatly helped socioeconomic development over the years, it said.
The ILO will monitor progress in the joint efforts by stakeholders in improving the labour conditions in Bangladesh this year and throughout 2014, and the EU will follow this process closely.
EU Trade Commissioner De Gucht will host a meeting in Geneva on July 8 which will be attended by a high-level representation from the government of Bangladesh, the ILO, and the US government.
There will also be representatives from the RMG exporters’ association, from some leading buyers, as well as trade unions.
The meeting, titled ‘Staying Engaged – A Sustainability Compact with Bangladesh’, will focus on agreeing on labour rights, safety and health at work, and responsible business conduct.
Following the recent factory disasters in Bangladesh, Commissioner De Gucht met Foreign Minister Dr Dipu Moni on May 28 to shape a response which would address the problems in the country, while avoiding hardship for its citizens.
Both sides agreed that the key to a lasting improvement lies in the engagement of all actors in the supply chain, and of international support for work at a multilateral level which can effect change in the most efficient and comprehensive manner.
The EU aims to uphold fundamental human rights, of which adhering to core labour standards is an intrinsic part. “This is why the EU is lending maximum support to the ILO process. The EU will also act in full respect of its WTO commitment to avoid discrimination.”
The EU is the destination for almost 60 percent of Bangladesh’s apparel products where Bangladesh enjoys duty-and quota-free access under the GSP and the EBA scheme.
If the EU withdraws the GSP facilities on garment imports from Bangladesh, the exporters will have to pay 12.50 percent duty on apparel items. It will lead to the country’s competitiveness.
On Thursday, the US administration suspended GSP benefits for Bangladesh and said the suspension represents an opportunity for Bangladesh to take action to improve labour and safety standards.
The US government said it will work with Bangladesh on the steps needed to potentially restore its GSP privileges, but that requires going through a process so that Bangladesh can make improvements.
Source: UNBConnect
