USTR suggests 'action plan' to get GSP restored

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Nazmul Ahsan The United States Trade Representative (USTR) has asked the Bangladesh government to implement an 'action plan' to improve labour standards in the apparel industries, develop fire safety and improve building structures for a favourable revision of GSP suspension. The plan also seeks to amend the current EPZ law and labour law to enable factory workers to have their freedom of association and collective bargaining rights. The US government on June 27 suspended Generalised System of Preferences (GSP) facility for Bangladesh's export to its market. The USTR, however, said the implementation of the proposed plan and reinstatement of the GSP facility will be tough for Bangladesh. The Bangladesh Embassy in Washington sent the action plan of the USTR to the Ministries of Foreign Affairs and Commerce for necessary actions. The GSP suspension will be reviewed after six months from the date the facility was suspended, while the suspension will be effective after 60 days, trade officials said. 'The US side explained that the proposed plan of action has been jointly prepared by the USTR and the Department of State and Labour and which is in line with the commitments already made by the government of Bangladesh. The USTR, however, maintained that the implementation of the plan and reinstatement of the benefits may not be 'terribly easy', reads a communication made to the Foreign Ministry from Washington. The action plan crafted by the USTR asks the government to develop, in consultation with the ILO, and implement in line with already agreed targets, a plan to increase the number of government labour, fire and building inspectors, improve their training, establish clear procedures for independent and credible inspections, and expand the resources at their disposal to conduct effective inspections in the ready made garment (RMG), knitwear, and shrimp sectors, including within Export Processing Zones (EPZs). The plan sought enactment and implementation, in consultation with the ILO, of labour law reforms to address key concerns related to freedom of association and collective bargaining. The plan also underscored dropping or expeditiously resolving pending criminal charges against labour activists to ensure workers and their supporters do not face harassment or intimidation. 'Advance a transparent investigation into the murder of Aminul Islam and report on the findings of this investigation,' reads the action plan. The action plan, highlighting EPZ, asked the government to repeal or commit a timeline for expeditiously bringing the EPZ law into conformity with international standards so that workers within EPZ factories enjoy the same freedom of association and collective bargaining rights as other workers in the country. Besides, the plan asked the government to issue regulations that, until the EPZ law has been repealed or overhauled, will ensure the protection of EPZ workers' freedom of association, including by prohibiting 'blacklisting' and other forms of exclusion from the zones for labour activities. Furthermore, it underscores the need for increase in fines and other sanctions for failure to comply with labour, fire, or building standards. It calls upon Bangladesh to develop, in consultation with the ILO and implement in line with already agreed targets, a plan to assess the structural building and fire safety of all active RMG/knitwear factories and initiate remedial actions, close or relocate inadequate factories, where appropriate, the plan of action said. Mahbub Ahmed, Secretary, the Ministry of Commerce, told the FE the ministry would soon hold meetings with stakeholders to implement the action plan and review the overall situation centering the GSP suspension.