Govt gives up on GSP

Commerce Minister Tofail Ahmed has given up on getting US to revive GSP facility for Bangladesh. He said, the government will take no new initiatives to have preferential trade facilities in the US revived. He said this after Washington did not include Bangladesh in its updated list of eligible countries for generalised system of preference (GSP). The office of the US Trade Representative (USTR) website says the facility is still suspended for Bangladesh and that it is closely observing the country's labour rights scenario.
“I don’t support taking any steps for reviving the GSP facility,” Tofail told reporters in his reaction on Tuesday. “We’ve fulfilled our conditions,” he said. “We’ve nothing more to do.”
President Barack Obama suspended Bangladesh’s GSP facility on June 27, 2013, in the aftermath of over 1,000 workers’ deaths in Tazreen Fashions Limited fire and Rana Plaza collapse. The decision will likely have little impact on Bangladesh’s multi-billion dollar readymade garment export as it was not included under the GSP. Bangladesh is the second largest exporter of RMG products after China but the sector has been plagued by accidents and allegations of low pay. The US said the 2013 suspension was aimed at ‘pushing Bangladesh improve’ working conditions and workplace safety in its factories. Minister Tofail Ahmed said Bangladesh fulfilled 16 conditions set by the US for reviving the facility. Under the GSP, 5,000 types of Bangladeshi goods enjoyed duty-free access. Bangladeshi businesses exported goods worth around $34.7 million to the US in 2012 and $2 million in duties was waived. “I don’t see reasons other than political ones,” Tofail said. “Obama has praised Bangladesh and there’s no reason for us not getting this GSP facility,” according to bdnews24.com.
- mbz