Dhaka needs further progress for regaining GSP: US

Dhaka needs to address some of the serious issues of worker rights to regain trade benefits under the generalised system of preferences (GSP), says Washington.

An interagency review led by the US Trade Representative (USTR) found progress made by Bangladesh in addressing fire and building safety issues in the ready-made garment (RMG) sector but said: "further progress is needed."

We urge the government to complete remaining factory inspections as soon as possible to prevent recurrence of workplace tragedies such as those that occurred in 2012 and 2013,” a news release dated 16 January quoted USTR Michael Froman as saying.

He mentioned that there is more work to do, building on the collaboration between the government, private sector stakeholders, and the International Labor Organisation, to address the concerns about factory safety in the apparel sector.

"We also urge the government to accelerate its efforts to ensure workers’ rights and to take measures to address continuing reports of harassment of and violence against labor activists who are attempting to exercise their rights,” the US official added.

President Obama suspended Bangladesh from GSP in June 2013 based on the country's failure to meet statutory eligibility requirements related to worker rights.

The US administration recently concluded a USTR-led interagency review of progress by Bangladesh in implementing the GSP Action Plan which provides a basis for the potential reinstatement of GSP trade benefits.

The review found that there has been progress in some important areas, particularly with respect to fire and building safety issues.  Under the general supervision of the Bangladesh government, over 2,000 initial safety inspections of factories have been completed in the RMG sector over the last year, most by teams organised by private sector initiatives led by North American and European brands and retailers.

These inspections resulted in the closure of at least 31 factories, the partial closure of 17 additional factories, and the identification of needed remedial measures in hundreds more.

The government is responsible for the inspection of several hundred more factories and has hired additional inspection teams to carry out and sustain the inspection effort.

The review also found that further progress is needed in several key areas under the Action Plan.

In particular, urgent progress is needed to fairly and systematically address reports of unfair labor practices and to advance and implement needed legal reforms.

The U.S. Government is concerned about continuing reports of harassment and violence against union activists seeking to establish new unions or to exercise their legal rights.

There has also been little progress in advancing 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 administration is closely coordinating with the European Union, the ILO and other international partners under the July 2013 Sustainability Compact on worker rights and factory safety in Bangladesh.