Restoring US GSP: Is visibility all?

With the passage of nearly one and a half years since the Tazreen fire and about a year after the collapse of Rana Plaza, many are concerned about knowing the current status of the works that were to be in place in a wide range of areas. The task is a mammoth one and materialising all actions committed by the government in this one year does not sound plausible. However, taking stock of the works done and those under process would help understand where things actually stand at the moment.

It may be recalled that ever since talks on factory safety and labour rights issues emerged, reactions from various quarters have been blowing swirls of thick smoke, much to the disadvantage of the country's highest export earner, the RMG sector.

What matters most at this stage appears to be the visibility of the actions taken in terms of compliance with the agreements of global retailers - Alliance and Accord on the one hand and measures suggested in the US Action Plan on the other. Visibility seems to be the key factor at the moment. Indeed, it was the lack of visibility that the USTR (United States Trade Representative) noted so strongly while temporarily scrapping Bangladesh's GSP benefit following the Tazreen fire that killed more than hundred workers in November, 2012. So, all that the government is required to do now is delineate as clear a picture as possible of the activities undertaken to be able to claim legitimacy in the restoration of US GSP. A few days back, Commerce Minister Tofail Ahmed commented that the government has already put in place most of the compliance measures in keeping with the US Action Plan and that the US should count on these and consider restoring the preferential trade benefit.

It has been learnt that the government is currently at work on the submission for the USTR in this connection. It will be the second submission following the earlier one in November 2013. The submission, in other words, is an assessment of the outcomes of the steps taken in improving labour rights and occupational safety in RMG factories. Understandably, such assessment should take stock of works done in respect of a whole range of activities including fire, electrical and building safety of all active RMG factories in the country, improvement in worker rights situation, improvement in institutional mechanism for monitoring fire and building safety and workers' rights. These being the broad outlines, materialising them through enactment of laws, formulation of rules, recruitment of suitable manpower, evolving effective monitoring device etc., calls for a high level of integrated effort.

The government will send its submission to the USTR in a day or two. The submission, as mentioned, should attempt to assess the outcome of activities completed, and also mention progress of those underway and those just initiated. In case of delayed completion, it would make sense to mention the constraints. Concerned quarters -- critics included -- do believe that considerable progress has taken place in some of the critical areas, and in order for those to yield returns, efforts should be put in a well-coordinated manner to sustain the progress.

It may be noted in this context that adoption of the National Tripartite Plan of Action on fire safety and structural integrity in the RMG factories has facilitated the government in putting under its ambit all aspects of occupational safety and the rights issues. The plan for assessment of fire, electrical and structural safety of all export-oriented garment factories has been in place for a while with 30 teams of engineers from Bangladesh University of Engineering and Technology (BUET) and inspection teams from Alliance and Accord. A common operating manual for assessing building, fire and electrical safety the factories has been reportedly developed by Alliance, Accord and BUET. The teams have reportedly completed inspection of around 900 factories. Upgrading the Directorate of Inspection for Factories and Establishments (DIFE) to a Department with more authority and manpower is a notable move. However, recruitment of inspectors has been learnt to be delayed due to procedural requirements of the Public Service Commission (PSC). This needs to be expedited. The government will also bank on the enactment of the Labour (amendment) Act 2013, adoption of the National Occupational Safety and Health Policy, 2013, fixation of minimum wage for garment workers and drafting of EPZ Labour Act, 2014.  

How clearly visible these steps are yet to be known. It will surely take a while to see whether these have been well directed, and if so, whether the government apparatus is well disposed to keeping the momentum in the days ahead. Hence, a rash attempt to assess the results or immediate and expected results from the actions might be misleading. There is a feeling among concerned quarters in the country that the US might not be eager to look at the GSP issue in isolation and would like to see it as essential to its relations with the ruling party.

Speculations apart, one does feel that imposition of any form of trade embargo has more to do with the country concerned in as much it affects its people and relevant sector of the economy rather than the handful of those who run the country.

wasiahmed.bd@hotmail.com