GSP revival, retention may come into question from US, EU

With the latest deadline now well over, Bangladesh might face question at the review meeting on the progress in fulfilling terms of the GSP-related Sustainability Compact due to failure in recruiting additional 200 inspectors for garment factories within the extended timeframe, sources said.
The Compact initially set December 30, 2013 as the deadline for recruiting 200 additional inspectors. The government, however, sought time twice for the purpose due to non-completion of necessary formalities.
Failing to complete the recruitment by the December deadline, the government had got the timeframe extended until March. Then again, it further sought time until June 30. The latest timeline was well over yesterday (Monday).
The government has missed the second-time extended deadline for recruitment of 200 additional inspectors for the country's readymade garment (RMG) factories for compliance with the terms of the consumer nations for some 'procedural complexities', sources involved with the process said.
Appointing 200 inspectors was one of the key requirements for revival of GSP (Generalised System of Preferences) on the US market and retention of the duty-free facility in the EU countries.
The two are the major destinations for Bangladeshi exports.     
According to them, any further delay in the appointment of the inspectors might lead to an adverse impact on the efforts to revive the GSP on the US market and keep continuity of the same benefit in the European Union.
However, at the OECD (Organisation for Economic Cooperation and Development) ministerial meeting in Paris, held on June 26, Karel De Gucht, EU trade commissioner, in his speech called on the Bangladesh government to accelerate the recruitment of inspectors and publish the inspection results.
"Over the coming weeks, the European Commission will be working on a full assessment of where we stand today," he said.
The EU and the Bangladesh government signed the Compact in July last year, and later the US joined the initiative.
The EU will assess the developments over the coming weeks and hold a meeting of all parties to the Compact, the tenure of which expires on July 8, as well as other stakeholders. The review meet is meant for getting their perspective and setting the agenda for going forward.
A senior labour ministry official said the recruitment condition has been given utmost priority. But the process faced various complexities, including changes in recruitment rules of DIFE and PSC.
"We hope that the authorities concerned will understand and consider it as there are many developments," he said. The process is going on removing all the obstacles and now time is required for some procedures.
When asked, Syed Ahmed, Inspector-General of the Department of Inspection for Factories and Establishments (DIFE), said they were yet to complete the recruitment only due to some procedural complexities.
"All the obstacles, including the necessary changes in the recruitment rules of both the DIFE and PSC, have already been removed," he said about the progress being made in the meantime.
So far, 67 inspectors have been appointed while recruitment of a total of 222 non-cadre class-two inspectors would take some more time, he explained.
"We have already requested the PSC in this regard," he said. And the Public Service Commission will seek interested persons from among the BCS candidates who came out successful in all tests, including viva-voce, but have yet to get any job for limited vacancies.
The recruitment process, including police verification and health test, would be done within a month or two, he hoped.