The United States will take a final call in June on the Generalised System of Preference (GSP) facilities to Bangladesh.
“All options including possible sanction, limiting the facility or complete withdrawal are being considered,” Assistant US Trade Representative for Labour Lawis Karesh told the Senate Committee on Foreign Relations on Thursday (local time). “A decision on GSP review will be taken by the end of June,” he said.
Chairman of the committee Senator Robert Mendez advocated a suspension saying “only a small fraction of exports (Bangladeshi) will be affected” as Bangladesh’s main export item, ready-made garment, did not enjoy a duty-free access in US market.
He said in the wake of the recent workers’ rights violation, the sanction would send a strong signal about US’s seriousness in protecting workers rights and improving workplace safety.
Assistant Secretary of State for South and Central Asian Affairs Robert O Blake however favoured GSP facilities for Bangladesh saying the country acting on US concern has allowed formation of 27 trade unions since September.
“We hope Bangladesh will seize the current situation to strengthen labour rights and improve working conditions. This administration wants to see Bangladesh succeed,” Blake said.
Barack Obama-led US administration called for a review of Bangladesh’s GSP facility in January after a fire at Tazreen Fashions Limited.
It was during the review process that the nine-storied Rana Plaza collapsed in Savar killing over a thousand people, almost all of them factory workers.
GSP decision is expected at a time when Bangladesh is on the verge of completing the Trade and Investment Cooperation Framework Agreement (TICFA) with the US, a pact the western country was pushing for over several years.
Source: Bd news24