The Office of the Ombudsman of the European Union has recently turned down the plea from a group of labour rights organisations for withdrawal of GSP facilities being enjoyed by Bangladesh for alleged violation of labour rights.
The organisations had filed the complaints with the EU Ombudsman against the European Commission, claiming that it has failed to investigate the alleged labour rights violations.
Declaring the cases 'closed', the EU Ombudsman ruled that the European Commission is on right track by not taking any step to start the process of GSP withdrawal.
"Based on the inquiry, the Ombudsman closes this case," ruled Ombudsman Emily O'Reilly with the conclusion that "given the detailed account provided by the Commission on the actions it is taking, the Ombudsman finds no maladministration in this case."
Commenting on the EU Ombudsman's verdict, Prof Md Mustafizur Rahman, Distinguished Fellow at the Centre for the Policy Dialogue (CPD), told the FE on Monday that it gives Bangladesh's garments sector a breathing space.
"But at the same time, we have to remember that the EU is observing our state of labour rights and they can withdraw the GSP if we fail to meet the requirements," he cautioned.
"So, we have to work seriously to ensure labour rights and other compliances," Dr Mustafiz added.
Talking to the FE, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Rubana Huq lauded the EU move, saying that it would help step up the garments entrepreneurs' ongoing efforts to ensure labour rights in their factories.
In the cases on 'the European Commission's actions regarding the respect for fundamental labour rights in Bangladesh in the context of the EU's Generalised Scheme of Preferences', the complainants considered that Bangladesh does not fully respect fundamental labour rights and that, therefore, the Commission should start the procedure allowing it to withdraw Bangladesh's trade preferences under the scheme.
The Commission informed the Ombudsman of how it has engaged with Bangladesh on the issue so far and the actions it has taken. It also said that it may decide to withdraw Bangladesh's trade preferences as a measure of last resort.
The EU's Generalised Scheme of Preferences (GSP) removes import duties from products coming into the EU market from vulnerable developing countries.
The GSP is based on international values and principles, including labour and human rights.
In October 2016, a group of trade union organisations wrote to the European Commission alleging that Bangladesh did not comply with its obligations in the area of fundamental labour rights.
They drew attention to the very serious issues and urged the Commission to investigate this matter in the context of the GSP.
Dissatisfied with the fact that the Commission had failed to launch an investigation, the International Trade Union Confederation, the Clean Clothes Campaign and the HEC-NYU EU Public Interest Clinic turned to the Ombudsman in June 2018.
The Ombudsman opened an inquiry into the Commission's failure to reply to the trade unions' letter of 4 October 2016 and invited it to explain why it had not taken action in the case of Bangladesh.
"In particular, the complainants considered that the Commission had failed to initiate the procedure, under Article 19 of the GSP Regulation, to temporarily withdraw the favourable tariff regime for Bangladesh. In doing so, they contended that the Commission was acting arbitrarily and had failed to explain convincingly why it was not initiating the procedure" the case documents said.
"In its replies, the Commission said that: It shares the complainants' concerns that the countries benefiting from EU trade preferences must respect fundamental human and labour rights. However, to maximise the chances of compliance, all available channels of engagement should be used before withdrawing trade preferences."
"The partial or full withdrawal of trade preferences should be a measure of last resort, also because the countries concerned are the least developed countries," the case documents added.
The Commission also said it has stepped up its engagement with Bangladesh, Myanmar and Cambodia due to serious human rights concerns and it aims to use all channels -- including bilateral trade and political dialogue and dedicated monitoring missions -- in order to make Bangladesh address labour issues.
"The option of initiating the process of withdrawal of preferences remains open. However, at this stage, the Commission considers that pursuing the matter through dialogue is more appropriate," the inquiry report said.
The Commission further pointed out that it has been monitoring the situation in Bangladesh closely.
The Ombudsman in its assessment noted, "Given the variety of circumstances covered by the principles referred to in Article 19 of the GSP Regulation and the different situations in countries benefitting from the GSP, the Commission's case-by-case approach is appropriate and justified. The fact that the Commission has withdrawn preferences in certain cases makes clear that it is ready to make use of this important sanction when it finds it justified".
"The Ombudsman finds that the Commission's explanations as to why it has so far considered that it would not be justified to initiate a withdrawal procedure against Bangladesh are reasonable".
In this case, the Ombudsman finds no evidence of maladministration in how the Commission has exercised its discretion or that its actions regarding Bangladesh are arbitrary and inconsistent with its approach in other cases (Myanmar, Belarus, Cambodia), the case document said.
The Ombudsman is also satisfied by the Commission's explanations on how civil society participates in this process, and that the Commission takes the contributions of civil society into account.
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