TICFA talks meaningless, if GSP not restored: Tofail

Commerce Minister Tofail Ahmed said on Wednesday the TICFA talks with the US will not be meaningful, unless Bangladesh gets back the preferential trade facility in the US market.
Tofail made the comment while talking to reporters after a meeting with the visiting United States Trade Representative (USTR) team at the Secretariat. The meeting was followed by signing of annual performance agreements (APAs) between the ministry and different agencies under it.
A meeting on the Trade and Investment Cooperation Forum Agreement (TICFA) will be held in November next. "I have said to them (USTR) the TICFA talks will not be meaningful, if the country does not get back the GSP (generalised system of preferences) facility," the commerce minister told the reporters.
The USTR was now demanding formation of an umbrella association comprising all the welfare associations in the industries located in the country's export processing zones (EPZs), after backtracking on its earlier stance on trade unions there, he said.
If an umbrella association was formed, it would spell trouble for the industries in the EPZs, he said.
About 16 conditions, including workers' safety, freedom of association and safety of labour right activists, tied to restoration of the GSP facility in the US market, were already met, he added.
"We have told them it is not possible to do anything more beyond the 16 conditions. Now, you can give us the GSP facility or not. That is up to you," Mr Tofail said.
The minister said the USTR team admitted that the apparel units had made significant progress in complying with different safety issues.
The USTR team visited the Chittagong EPZs and talked to the workers there. The workers told the USTR that they had no tension about safety in the Chittagong EPZs, the minister mentioned.
The minister also said, "The 10th WTO Ministerial Conference will be held in Nairobi, Kenya from December 15-18. There we will raise the issues of duty-free and quota-free market access, rules of origin, the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and services waiver."
An eight-member delegation led by Assistant US Trade Representative Michael J. Delaney met the commerce minister. Senior secretary of the ministry Hedayetullah Al Mamoon and other high officials, among others, were present then.  
Taking positive notes of some progress made by Bangladesh in the apparel sector, the leader of the visiting US trade team suggested further improvement in the EPZ law reform apart from some other issues to get back the GSP facility.
"I understand there is an assessment by some in Bangladesh that the (GSP) Action Plan has already been fulfilled… But the fact is that our own tracking of the items in the plan, as I have described today, indicates that more needs to be done," he said.
Michael J Delaney, Assistant US Trade Representative, was delivering his wrap-up speech for the press and the businesspeople at the EMK Centre in the city on Wednesday at the end of the five-day visit of the team led by him. US Ambassador Marcia Stephens Bloom Bernicat was also present.
The US trade representative pointed out a number of issues to get back the trade benefit but said the goals of the GSP Action Plan and the Compact are important.
"But we should also think more about expanding our economic relationship outside the context of GSP," he added.
Mr Michael Delaney said the TICFA provides an opportunity for the US and Bangladesh to discuss mutual interests in trade, raise concerns and to resolve them.
He expressed hope that the next TICFA meeting would be an appropriate forum for a discussion to find a way to make progress together in addressing other trade issues.  
Pointing out that the freedom of association in the EPZs is a very significant element of both GSP Action Plan and the Sustainability Compact, he said efforts to harmonise the law in the EPZs with international standards would help achieve another GSP element.
He lauded the success of union registration that increased in the number but expressed his concern at the denial of registration for an increased number of unions. He also expressed the US interest in working with the ministry of labour for capacity-building to address these allegations and ensure trade union rights and responsibilities under the law.
Refuting the allegation that the decision of suspension of trade benefits under the GSP programme was based on politics, Mr Michael said: "It was a fact-based decision that followed a public, transparent, multi-year review of worker rights and worker safety in Bangladesh."
The review included four public hearings and scores of public submissions by a wide range of stakeholders, including the government of Bangladesh, labor groups in the country and the United States and others, he added.
The US trade representative also said the GSP Action plan for Bangladesh, under which the US provided the government of Bangladesh with a roadmap to the GSP status, was reviewed by US officials to share specific issues of concern, to share and suggest ways to address those issues and offer technical assistance.
He also pointed out inspection of remaining RMG factories, including subcontractors and factories already inspected to implement corrective action plans, publishing results of labour inspections and increased regulatory responsibilities of the government to ensure fire safety and building safety.
The trade representative also laid importance on publishing the inspection data of the government on safety in areas relating to unfair labour practice investigations and prosecutions.
"As a party to the Sustainability Compact, the U.S. Government works closely with Compact partners to advance worker safety and labor rights in Bangladesh.  What we accomplish together, under the Sustainability Compact, will help us in our complementary efforts to enhance respect for labor rights, improve working conditions, restore trade benefits and drive a broader economic development, not just in the RMG sector, but throughout the economy."
He said the United States was also providing millions of dollars in technical assistance in Bangladesh to help advance the shared goals of the GSP Action Plan and the Sustainability Compact and added that by improving worker rights and worker safety, Bangladesh's goal to achieve the middle income status is achievable.  
Mentioning that the global market for RMG products becomes more and more competitive, he said in the end, having a healthy relationship with a union can strengthen a business and attract international buyers who track labour standards, which means it can be good for business.
"Bangladesh can sustain the growth in its RMG exports and move up to higher value-added segments of the RMG sector, by completing the remaining elements of the GSP Action Plan," he said.
An improved labour rights climate would prove an integral part of a strong business climate, helping Bangladesh boost the commercial interaction, he added.
rezamumu@gmail.com
smunima@yahoo.com