The lack of fire safety in Bangladesh’s garment sector may jeopardise the country’s eligibility for the European market’s Generalised System of Preferences Plus (GSP+). Bangladesh’s garment exports will fall by US $ 4 billion per year if the duty-free trade privilege in the European Union ends. With Bangladesh’s upcoming graduation from Least Developed Country (LDC) status, eligibility for the EBA scheme will expire.
The industry has grown, creating jobs and stimulating the economy, from US $ 19 billion in 2012 to approximately US $ 40.49 billion in 2024. However, worker welfare is still disregarded, with concerns like poor fire safety, deteriorating living conditions, and environmental degradation. Many lives have been lost and factories have been wrecked in RMG due to numerous fire events.
As of the most recent data, about 61 per cent of Bangladesh’s total Ready-Made Garment (RMG) exports are destined for the European Union (EU). This percentage equates to approximately US $ 17.14 billion of the total US $ 27.94 billion in RMG exports, which benefit from the Generalized Scheme of Preferences (GSP) and the Everything But Arms (EBA) scheme.
With Bangladesh’s upcoming graduation from Least Developed Country (LDC) classification, its eligibility for the EBA initiative would expire. To maintain preferential access under the GSP+ plan, Bangladesh must adhere to tough international criteria, including labour rights and worker safety, among others.
Failure to achieve these conditions, such as ongoing fire safety issues, may jeopardise Bangladesh’s eligibility for GSP+ advantages, resulting in higher tariffs and a loss of competitiveness in the EU market.
Even after ten years of progress, many garment factory owners are still giving fire safety the bare minimum of attention. The GSP+ program requires Bangladesh to comply with high international standards, including labour rights and workplace safety, all of which are essential components of the treaties to which it must adhere.
