FBCCI urges USTR not to scrap GSP facilities

FE Team | Published: January 31, 2013 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) in a submission has told the United States Trade Representative (USTR) that the country has no child labour. Workers too enjoy freedom of association and also have access to tribunals to protect their rights in conformity with international standard, it said. In this context, the FBCCI called upon the US not to harm Bangladesh by changing the existing GSP facilities being enjoyed by the country for some of its export items on the basis of allegations of violation of workers' rights. On the other hand, the FBCCI has urged the concerned authorities in the US to cooperate with Bangladesh so that the labour standard could be developed in the fields which are yet to be covered. However, in its submission, the apex trade body informed that only 3.2 per cent of the total exports of Bangladesh to the US enjoyed GSP facilities in the fiscal year 2011-12. The ready-made garments (RMG), which constitute 95 per cent of the total export was subjected to 15.3 per cent tariff amounting to $680 million annually as against less than 5.0 per cent tariff payable on US exports to Bangladesh. The US consumers also get the benefit of the most competitive price at the cost of welfare gains of Bangladeshi workers more than 80 per cent of whom are women, the submission said. The 20-point submission, compiled by FBCCI Secretary General Mir Shahabuddin Mohammad, was forwarded to US on Wednesday following a recent visit of a US team that recently inspected overall situation in the industrial sector. The submission was prepared, in response to a notice from the USTR issued on January 8, requesting public comments by today (January 31) on the possible withdrawal, suspension, or limitation of GSP benefits for Bangladesh on grounds of not taking steps to give internationally-recognised rights to the workers. The rights included specifically the right of association and the right to organise and bargain collectively. "FBCCI, the apex body of the business community of Bangladesh, deems it proper to inform interested parties including the USTR about the steps Bangladesh has taken to afford to workers in Bangladesh internationally- recognised worker rights, specifically the right of association and the right to organise and bargain collectively," the submission said. It said Bangladesh had ratified seven core ILO conventions accepting workers' rights of association, rights to engage in collective bargaining, elimination of child labour and discrimination of workers in respect of employment and occupation. "Our RMG and shrimp sectors, already free from child labour, have taken up programmes and has set up task force to monitor and ensure due compliance with laws and regulations of the country on labour welfare and safety issues," the submission said. Meanwhile, the BGMEA (Bangladesh Garments Manufacturers and Exporters Association) is now engaged in awareness buildup among member- factories not only through visual presentations but also through posters, leaflets, one day training and regular fire drills. The BGMEA with the technical cooperation of BUET (Bangladesh University of Engineering and Technology) and Fire Service Department have started visiting factories to improve their safety standards. As Bangladesh established trade union registration system in 2006, a total of 143 registered trade unions operating only in the export-oriented garment sector have been registered as legal trade unions. The submission claimed that there is absolutely no compulsory labour or forced labour in Bangladesh, but for extra hours of work at the factories, the workers are paid overtime allowances as per the existing wage rate. The FBCCI assured once again that there is no child labour in garment and shrimp processing units. However, the government has started eliminating child labour from the leather sector under the National Child Labour Elimination Policy, 2010. The Bangladesh Export Processing Zones Authority has achieved substantial progress in fulfilling its road map, presented before the USTR in February 2012 hearing. The EPZ Workers' Associations and Industrial Relations Act-2004 has been upgraded, in consultation with the US embassy, World Bank and JICA, to comply with the relevant ILO conventions, facilitating formation of workers' welfare associations in 151 enterprises till December 2011. "Bangladesh is implementing ILO Better Work Programme to improve, promote and ensure labour standards compliance, the submission said. In BEPZA (Bangladesh Export Processing Zone Authority), elections were held in 76 per cent of enterprises for formation of workers' unions and accordingly Workers Welfare Associations were formed in 180 enterprises in the country's eight EPZs. To make industrial units comply with safety standards, a tripartite meeting on fire safety was organised jointly by the Ministry of Labour and Employment and the ILO on 15 January 2013. Subsequently, a tripartite commitment was signed at the meeting which called for promoting the relevant ILO instruments to ensure safety for workers. "To promote compliance with ILO core labour standard, Bangladesh Frozen Food Exporters Association, Bangladesh Shrimp and Fish Foundation and American Centre for International Labour Solidarity reached an agreement on January 19, the submission said. The submission said the total US investment in Bangladesh is about $3 billion as of now as US banks and insurance companies, Citibank and AIG are operating in Bangladesh. It said the US investment comes largely in the energy and power sectors in Bangladesh, led by Chevron and Unocal. It said US company Cargill exports wheat, cotton and other agricultural products duty free. US products and services, machinery, Caterpillar generators and GE gas turbines, personal care products and even stained glass window treatments have accessed Bangladesh markets.