U.S. has Suspended Trade Privileges With Bangladesh

[third eye]

BBC News - US downgrades Bangladesh trade ties

US downgrades Bangladesh trade ties


The US has suspended trade privileges for Bangladesh until it improves workers' safety conditions in the clothing industry.

US Trade Representative Michael Froman pointed to several recent fatal accidents in its huge clothing sector.

These "had served to highlight some of the serious shortcomings in worker rights and workplace safety standards in Bangladesh", he said.

Two months ago, a factory collapse near Dhaka killed 1,129 people.

The collapse of the nine-storey complex, on 24 April, was Bangladesh's worst industrial disaster, and one of a series of accidents involving the world's second-biggest exporter of garments after China.

The garment industry employs some four million people in Bangladesh, 80% of them women.

The death toll from April's accident and others focused global attention on low safety standards in Bangladesh's garment factories and prompted the government in Dhaka to launch inspections of all plants to try to reassure Western retailers that safety conditions had improved.

Twelve people have so far been arrested over what happened, including the building's owner.

But unions and experts say hundreds of factories are still operating in shoddy buildings, raising fears that another tragedy could occur at any time.

President Obama's order suspends Bangladesh's duty-free trade privileges under the terms of a US trade programme called the Generalized System of Preferences (GSP), designed to promote economic growth in developing countries.

"The US government has worked closely with the government of Bangladesh to encourage the reforms needed to meet basic standards," said US Trade Representative Michael Froman.

"Despite our... clear, repeated expressions of concern, the US government has not seen sufficient progress towards those reforms", he added.

Thursday's announcement was the culmination of a year-long review of labour conditions in Bangladesh.

US Democratic lawmakers have been pushing for trade sanctions since April.

The action is thought unlikely to have an immediate economic impact, but it carries a reputational cost and might deter US companies from investing in the country, one of the world's poorest.

The sanction, which comes into effect in 60 days, might also sway a decision by the European Union on whether to withdraw GSP privileges.

EU action could have a much bigger impact, as its duty-free privileges specifically cover garments, which account for 60 percent of Bangladesh's exports to Europe.

 

[Dillinger]

BBC News - US downgrades Bangladesh trade ties

US downgrades Bangladesh trade ties


The US has suspended trade privileges for Bangladesh until it improves workers' safety conditions in the clothing industry.

US Trade Representative Michael Froman pointed to several recent fatal accidents in its huge clothing sector.

These "had served to highlight some of the serious shortcomings in worker rights and workplace safety standards in Bangladesh", he said.

Two months ago, a factory collapse near Dhaka killed 1,129 people.

The collapse of the nine-storey complex, on 24 April, was Bangladesh's worst industrial disaster, and one of a series of accidents involving the world's second-biggest exporter of garments after China.

The garment industry employs some four million people in Bangladesh, 80% of them women.

The death toll from April's accident and others focused global attention on low safety standards in Bangladesh's garment factories and prompted the government in Dhaka to launch inspections of all plants to try to reassure Western retailers that safety conditions had improved.

Twelve people have so far been arrested over what happened, including the building's owner.

But unions and experts say hundreds of factories are still operating in shoddy buildings, raising fears that another tragedy could occur at any time.

President Obama's order suspends Bangladesh's duty-free trade privileges under the terms of a US trade programme called the Generalized System of Preferences (GSP), designed to promote economic growth in developing countries.

"The US government has worked closely with the government of Bangladesh to encourage the reforms needed to meet basic standards," said US Trade Representative Michael Froman.

"Despite our... clear, repeated expressions of concern, the US government has not seen sufficient progress towards those reforms", he added.

Thursday's announcement was the culmination of a year-long review of labour conditions in Bangladesh.

US Democratic lawmakers have been pushing for trade sanctions since April.

The action is thought unlikely to have an immediate economic impact, but it carries a reputational cost and might deter US companies from investing in the country, one of the world's poorest.

The sanction, which comes into effect in 60 days, might also sway a decision by the European Union on whether to withdraw GSP privileges.

EU action could have a much bigger impact, as its duty-free privileges specifically cover garments, which account for 60 percent of Bangladesh's exports to Europe.

Labor rights and conditions is a hog wash! They are just trying to corner BD for their own gains. Has any one seen the kind of conditions that prevail at foxcon factories in China, horrendous is a mild term to describe them. Lets be honest, the yanks or our euro friends care two hoots about such stuff. Even if BD fixes the issue which they are using as their pretext they'll find something else to stick to them.

 

[Maira La]

Do not worry. @aazidane will find out other new markets for the country in the non-western hemisphere. I am quite relieved by his assurance. Let us hope for the best.

Eastwatch bhai, this particular suspension of privileges is not as devastating as the media is making it out to be. We never enjoyed GSP for the garments industry anyway. And I don't understand why so many Indians are getting super ecstatic, especially those whose families we kicked out of BD in the past. =)

 

[baajey]

Do not worry. @aazidane will find out other new markets for the country in the non-western hemisphere. I am quite relieved by his assurance. Let us hope for the best.

hehe ....good to hear that...lets see how things turn out...

 

[my2cents]

Eastwatch bhai, this particular suspension of privileges is not as devastating as the media is making it out to be. We never enjoyed GSP for the garments industry anyway. And I don't understand why so many Indians are getting super ecstatic, especially those whose families we kicked out of BD in the past. =)

Well, you are not the garment worker.... so, why would you be concerned about this stupid ban?? We understand the gravity of your situation better than you guys with your myopic vision... but long term implications include loosing image, market and customers. On top of that you would have to convince your customers that your workers safety conditions have been improved to gain back their trust.

Tall order sitting in your glass houses... but it requires resources on ground to improve infrastructure and manpower to enforce safety laws, which BD is lacking. Those 1000 deaths could have been prevented if laws were enforced.

 

[Maira La]

Well, you are not the garment worker.... so, why would you be concerned about this stupid ban?? We understand the gravity of your situation better than you guys with your myopic vision... but long term implications include loosing image, market and customers. On top of that you would have to convince your customers that your workers safety conditions have been improved to gain back their trust.

Tall order sitting in your glass houses... but it requires resources on ground to improve infrastructure and manpower to enforce safety laws, which BD is lacking. Those 1000 deaths could have been prevented if laws were enforced.

You're throwing lots of big words around, but did you care to take some time, read and understand the original article? Two things you could take into account before taking the pain and effort to post the above:
1) this is not a ban on anything - need I say more?
2) the garments industry never received the GSP privilege.

I just hope the EU doesn't slap a sanction or two!

 

[my2cents]

You're throwing lots of big words around, but did you care to take some time, read and understand the original article? Two things you could take into account before taking the pain and effort to post the above:
1) this is not a ban on anything - need I say more?
2) the garments industry never received the GSP privilege.

I just hope the EU doesn't slap a sanction or two!

I was referring to US companies banning your products until safety conditions are improved. Disney just announced that they will stop imports from BD. $5 billion trade to US is in jeopardy... and it is no chip change. I am well aware that US was considering you guys for GSP privilege... but those talks have come to a halt as of now.

 

[JayAtl]

This thread is a classic poster child for why certain countries will always be 3rd world and have no hope to grow into a developed nation. Mind you this mindset is not just in BD

Instead of BD citizens saying, this is a great move by the US- because we know the politicians / govt/ private sector will NEVER EVER keep the safety of our citizen workers in mind! that only when it hurts wallets / profits will they stand up and make changes. BD posters here?-THEY GO- on a rant against the US and say they move to other markets

I'm always baffled as to how a countries citizen(s) think that it is national pride in having their working class being killed by their industrial class.

 

[Jayhawk]

I don't understand the thought process of Bengali's here. If i understand this right garments factory alone is the backbone of your economy....so instead of letting it go down the crap hole, it needs to be protected and make sure no harms comes to it. Its definitely a good move by Obama administration but a big blow for Bangladesh.

 

[Zabaniyah]

I don't understand the thought process of Bengali's here. If i understand this right garments factory alone is the backbone of your economy....so instead of letting it go down the crap hole, it needs to be protected and make sure no harms comes to it. Its definitely a good move by Obama administration but a big blow for Bangladesh.

The garments industry is indeed an important part of Bangladesh's economy.

And here, we admit that there is close to no accountability in Bangladesh. Hence the negative image of Bangladesh in this regard.

For much part, it's all about money and muscle-power for the titans of Bangladesh's garments industry along with seasoning of extreme ignorance. The blame squarely goes to them.

Suffice it to say, suspension of GSP privileges is not going affect the industry too significantly. However, if the EU make a similar move, then the effect would be significant.

 

[Dillinger]

The garments industry is indeed an important part of Bangladesh's economy.

And here, we admit that there is close to no accountability in Bangladesh. Hence the negative image of Bangladesh in this regard.

For much part, it's all about money and muscle-power for the titans of Bangladesh's garments industry along with seasoning of extreme ignorance. The blame squarely goes to them.

Suffice it to say, suspension of GSP privileges is not going affect the industry too significantly. However, if the EU make a similar move, then the effect would be significant.

The US is trying to get the EU to do exactly that and they have Merkel's ear BUT Russia(they have good pull) will try and balance it out. But the EU tends to follow the piper. And you know why they're doing this- to glean control and profit- the same things being pushed on to Pakistan where the IMF has refused to give them loans till they do not slash subsidies and increase indirect taxes. But you guys can always back a make belief invasion against us.

I am beginning to like the Arabian reaper..Ak er bodle tumi ek ta churi pick korte parte.

 

[Chak Bamu]

Being a textile engineer and having worked in garment factories among other concerns, I can tell that the push for Compliance with labor laws and rights of workers is positive and has yielded results over time. Owners otherwise would not do much for workers' sake. It does not matter if the owners are Pakistani, Indian, or Bangladeshi. Their ethics are similar.

So, while most here would say this or that to US and EU out of nationalist feelings, I would beg to differ.

 

[eastwatch]

US ambassador justifies GSP revocation - bdnews24.com

US ambassador justifies GSP revocation
Senior Correspondent, bdnews24.com
Published: 2013-06-28 10:46:25.0 GMT Updated: 2013-06-28 12:50:54.0 GMT

The US ambassador in Dhaka Dan Mozena on Friday said his country’s GSP decision would serve as ‘the first step’ in ensuring that Bangladesh never again has another devastated Rana plaza incident or Tazreen factory fire.

“It was not cancellation, it’s suspension,” he said calling for actions to regain the facility.

US Ambassador Dan W Mozena speaks at a discussion at the National Press Club on Tuesday. Photo: bdnews24.com/ Dhaka, July 09, 2012
The envoy was talking to journalists on the sidelines of a function in Dhaka.

The US has suspended long-time preferential trade benefits, or GSP status, for Bangladesh in a mostly symbolic response to hazardous working conditions in the garment industry that have cost more than 1,200 lives in the past year.

The US sanction does not directly affect Bangladesh's main export, multi-billion-dollar clothing to the United States, since garment is not eligible for duty cuts under the Generalized System of Preference, or GSP facility.

But the decision raised concerns as other countries like European Union and Canada, where Bangladesh’s main export item readymade garments enjoy this facility, might follow the suit.

The government was upset over the ‘unfortunate’ decision as it said it had taken concrete and visible measures to improve factory safety and protect workers’ rights and hoped Washington would soon reintroduce the facility.

However, the government smelt a rat over the involvement of a section of people in Bangladesh and the US for the decision.

“Indeed a section of people, both within Bangladesh and the USA, had long been campaigning for this,” the Ministry of Foreign Affairs said in a statement on Friday after the decision.

The government has amended the 2006 Labour Act, signed ILO-led government-employer-worker tripartite agreement to implement time-bound decisions, and formed a ministerial committee to ensure compliance in garment factories, steps that Bangladesh says should speak for the government’s ‘seriousness’ on the matter.

The US envoy said Bangladesh needed “to take the measures to ensure never again such incidents would recur...... and first step in that process, I think, could be the suspension of GSP privileges”.

He said as Bangladesh would work to regain the privilege, the decision would act as the first step that would “make sure labour rights are fully honoured, workers have the right to freely associate, workers have the rights to organise, all factories meet fire safety standards and factory buildings are structurally sound”.

He said some people trying to make it ‘big negative’. “This is the first step forward in making Bangladesh a preferred brand in the global market...towards making Bangladesh number one in exporting RMG, ahead of China.”

Bangladesh’s apparel came under scrutiny after the collapse of the Rana Plaza garment factory building in April that killed over 1,100 people and the Tazreen Fashions Ltd factory fire in November last year that killed more than 110.

Analysts however said the decision could influence the European Union to take similar action, which would have a much bigger impact on Bangladesh and its main export item ready-made garment.

The European Union buys more than $12 billion Bangladeshi garments each year, or roughly three-fifths of the country’s production.

Losing the GSP facility will cost Bangladesh millions of dollars in taxes.

Suspending Bangladesh from the GSP programme would increase US duties on an array of products the country exports to the United States, such as tobacco, sport equipment, porcelain china, plastic products and a small amount of textile products.

Quoting trade analyst with the GlobalWorks Foundation Ed Gresser, Reuters said, last year Bangladesh was spared about $2 million in US duties on about $35 million worth of goods under GSP programme, but it paid about $732 million in US duties on $4.9 billion of clothing exports not covered by the programme.

The GSP facility was created in 1976 to help economic development in the world's poorest countries and to reduce import costs for US companies.

Bangladesh is among more than 125 countries that receive concession on United States tariffs under a World Trade Organisation programme intended to promote economic growth around the globe.

Bangladesh is allowed to duty-free export nearly 5,000 products to the United States, which purchases about 25 percent of the country’s $18 billion annual apparel exports.

The United States' review dates back to 2007, when the AFL-CIO, the main US labour group, first filed a petition asking for revocation of trade benefits to Bangladesh.

 

[BDforever]

if we see BNP leader suggested USA to cancel GSP of BD (wow what a patriot people ! ! and BAL the idiots) , now the current government has few months to safe guard working condition which is not possible for them to improve the working condition. Now in next election BNP is coming to power (according to our political trend), so all pressure will be fallen on BNP by both internationally and domestically. So at the end BNP chopped its own leg by itself with axe

 

[animelive]