The US has taken a firm step to awaken the Bangladesh industry by suspending GSP due to poor safety and labour standards in the country. The decision, however, will have little impact on multi-billion dollar readymade garment export, as the industry was not benefited under the scheme. But the GSP suspension is definitely an embarrassment for the Bangladeshi Government, which is convincing foreign firms about its seriousness for improving worker safety. RMG workers’ bodies say that the US decision will be of no help for workers although it aimed at pressing the Government into implementing their rights.
Being the single largest importer of Bangladesh’s goods, the move by US might find support from other countries and many experts fear that the Canadian market that accounts for a good share of Bangladesh’s apparel goods, may take similar action in the coming months. In 2012, Bangladesh was spared of about US $ 2 million in US duties on about US $ 35 million worth of goods under GSP program, but it paid about US $ 732 million in US duties on US $ 4.9 billion of clothing exports not covered by the program.
To the satisfaction of the Bangladesh Government, the EU has decided to remain neutral. In reference to the GSP suspension, William Hanna, Head of Delegation of the European Union to Bangladesh said, “The European Union will not follow the steps taken by the US on GSP facilities. It will maintain close ties with the stakeholders including the Government, apparel makers and buyers to improve workplace safety.” However, the Bangladesh Garment and Industrial Workers Federation President Babul Akhtar said that he does not think that the suspension of GSP at this point will affect the European market. The EU buys more than US $ 12 billion in Bangladeshi garments annually, nearly three-fifths of the country’s production.
BGMEA President Atiqul Islam believes, “The move will not tarnish Bangladesh’s image in the global arena as we might face pressure in elsewhere but nothing like ‘waning export’ would occur.” Dan W Mozena, US Ambassador in Dhaka said, “It’s not cancellation, it’s a suspension,” which can be reviewed. Gowher Rizvi, a foreign policy adviser to Prime Minister Sheikh Hasina said, “We’re very hopeful that in six months the US will review our GSP status and restore our privileges.”
