Defending the US stance of suspending Bangladesh’s GSP privileges, the country’s ambassador to Dhaka Dan W Mozena on Friday said Bangladesh “may” get back the facility if the government ensures security of the workplace and develop lifestyle of the workers engaged in ready-made garments (RMG) industry, reports Bangladesh24.com
He said: “Bangladesh needs to take the measures to ensure never again such incidents (Tazreen and Rana Plaza) would take place and first step in that process, I think, could be the suspension of GSP privileges.”
The US ambassador came up with the observation while talking to journalists at Yunus Centre in the city.
Bangladesh’s apparel came under scrutiny after the collapse of the Rana Plaza garment factory building in April that killed over 1,129 people and the Tazreen Fashions Ltd factory fire in November last year that killed more than 110.
Mozena said Bangladesh may get back the GSP facility by giving assurance that it will develop garments safety for the workers.
The US has suspended Bangladesh’s Generalised System of Preferences (GSP) status on Thursday in response to the country’s hazardous working conditions in the apparel industry that have cost more than 1,200 in last eight months in two catastrophic disasters—Tazreen Garments fire and Rana Plaza collapse.
The sanction does not directly affect Bangladesh's main export, clothing, the US, since garment products are not included under GSP facility.
However, experts say the decision could influence the European Union to take similar action, which would have a much bigger impact on Bangladesh since the GSP facility, provided by EU, does include clothing.
The European Union buys more than $12bn Bangladeshi garment products each year and losing the GSP facility will cost Bangladesh millions of dollars in taxes.