USTR to review BD progress in RMG labour issues in July

Talha Bin Habib | Published: May 05, 2014 00:00:00 | Updated: November 30, 2024 06:01:00

The USTR is set to review the progresses made in labour issues by Bangladesh in its ready-made garment (RMG) sector in July next for reviving the generalised system of preferences (GSP), officials said. Â
The first-ever Bangladesh-USA meeting under the TICFA (Trade and Investment Cooperation Forum Agreement) concluded on April 28, 2014, in the capital that evaluated progresses towards implementation of the 'action plan' set by the United States to enable Bangladesh to get back the facility of GSP.
The United States Trade Representative (USTR) outlined 16 conditions in the Bangladesh Action Plan, which comprises improvement in labour standards, improvement in fire safety, trade union activity in Export Processing Zones (EPZs) and appointment of factory inspectors in order to get the GSP facility revived for the country.
Bangladesh has already fulfilled 13 conditions of the action plan, out of 16 outlined by the US administration for the reinstatement of the GSP.
The USTR is expected to send a letter to the ministry of commerce (MoC) about the progresses in the remaining issues that were yet to be fulfilled, sources of the MoC said.
"We expect to get the letter from the USTR this month. After getting it we will inform the USTR about the progresses made in the conditions that were yet to be fulfilled," a high official at the MoC told the FE.
Assistant USTR for South Asia Michael Delaney led the US side, while Senior Secretary of the MoC Mahbub Ahmed led the Bangladesh side at the TICFA meeting.
The TICFA meeting reviewed various trade and investment issues involving the two countries, the Action Plan, market access of goods and services, US investment in Bangladesh, transfer of technology to Bangladesh, implementation of Bali Package, and progress in Istanbul Plan of Action.
The US side raised the issues including tariff on fire-electrical and safety equipment, public tender specifications, double fumigation of cotton imported from the US, delayed payment, violation of intellectual property rights by Bangladesh, and regional cooperation.
During the meeting, Washington asked Dhaka to do more in the areas of labour law reform and factory safety inspection to get the GSP facility revived.
Bangladesh and the US signed the TICFA deal on November 25 last year in Washington.
Bangladesh is currently the United States' 58th largest goods trading partner with $6.1 billion in total (two way) goods trade during the calendar year 2013.Â US goods exports to Bangladesh in 2013 were $712 million, up 41.9 per cent ($210 million) from 2012.
Bangladesh exports goods including ready-made garments worth over US$ 5 billion to the US market annually.
But under the GSP facility, Bangladesh's exports to the US market account for only $26 million or 0.54 per cent of Bangladesh's total exports to the US market.
Plastic items, ceramic products and dry fishes used to be exported to the US market under the GSP facility.