Reliable Brokers
Online Investing
Alerts & Analysis
Easy Trading

USTR: Improved freedom of association a must for GSP reinstatement

Update : 23 Sep 2015, 06:46 PM

Freedom of association for workers must be improved in order to fulfil the requirements of the 16-point Generalised System of Preferences Action Plan, according to US Assistant Trade Representative Michael Delaney.

At a programme at the EMK Centre in the capital yesterday, Delaney said: “There is notable progress in certain areas, particularly regarding improved workplace safety. Challenges remain, however.

“One example is the need to improve freedom of association. We are looking for greater transparency with unfair labour practices and union registration both inside and outside the EPZs [Export Processing Zones].”

He said Bangladesh was making progress implementing the Action Plan and preparing for the Sustainability Compact review scheduled to be held in Dhaka in November.

Delaney and his delegation arrived in Dhaka on September 19 on a five-day trip and held a series of meetings with government officials, manufacturers, NGOs, workers and members of civil society.

Asked when Bangladesh would regain GSP status, he replied: “The timeline for GSP reinstatement is largely up to Bangladesh.”

Despite concrete progress regarding worker safety, other elements of the action plan such as freedom of association had to be addressed, he said.

He said the decision to suspend the GSP was not politically motivated, adding that GSP criteria were transparent and equally applied to all countries.

“President [Barack] Obama decided not to grant GSP status after the US government had conducted six years of intensive public reviews and engagement with the government of Bangladesh,” he said.

US Ambassador to Dhaka Marcia Bernicat said at the programme that completing the previously agreed upon Action Plan was the way forward.

“We will continue to work together on all of these issues with the government of Bangladesh and the European Union in preparation for the Sustainability Compact review in November,” she said.

“Adopting the international standards that are inherent in the Action Plan will be essential to helping the ready-made garments sector remain competitive so that it can improve its productivity moving forward,” she added.

The United States has invested over $12 million to improve labour conditions in Bangladesh and USAID will launch a $22 million loan guarantee to help manufacturers make necessary safety improvements to their factories, Bernicat said.

Following the collapse of Rana Plaza, the US administration suspended Bangladesh’s GSP status in June 2013. A 16-point roadmap to restore GSP status was announced the same year. 

Top Brokers