The European Union (EU) is highly unlikely to withdraw Bangladesh’s duty-free access to its market, the largest in the world, in response to the Savar tragedy, a senior diplomat at an EU member state’s mission in Dhaka told the Dhaka Tribune.
“The EU would be foolish to take duty-free access back.This is part of our development programme,” said the senior diplomat who requested anonymity.
“We try to enable Bangladesh through duty-free access, to improve working standards. I am pretty confident there is no serious discussion,” of cancelling preferential access to the EU.
This comes in the wake of US ambassador, Dan Mozena telling the press recently the Savar tragedy, “certainly makes the environment of workplace safety questionable. I’m sure it’ll have [an] impact,” on the US decision as to whether to withdraw preferential access to US markets.
Several European companies were found to have been working in the collapsed complex. Documents seen by the Dhaka Tribune confirm the Spanish brands Mango and El Corte Ingles were engaged with factories located inRana Plaza. The UK’s Primark, alsosourced from a factory in the complex, said they will assist with compensation, while Canada’s Loblaw also stated they would provide assistance as they sourced some of their Joe Fresh products from one of the factories.
The EU diplomat said the sector “was the backbone of the economy, to hamper its development you would end up creating a lot of poverty.” He did however, suggest: “first of all it is the responsibility of the government to ensure safe buildings, how could you blame others? It’s the main responsibility of the government. This is a sovereign state you cannot expect buyers to say do this do that.”
“There is a law, but due to lack of implementation and severe manpower shortages such unlawful buildings are being constructed,” Roger Hubert, vice president of consumer products trading group Li and Fung, told Reuters.
The US has been reviewing the country’s Generalised System of Preferences (GSP) status since November’s fire at the TazreenGarment factory in Ashulia, which killed around 112 people. US retailer Walmart was found to have sourced products from there.
The connection worried lawmakers and labour groups in the US, as it may result in withdrawal of GSP, which does not cover garments in the US, but warn industry heads may have a negative impact on the country’s image and hamper diversification into other sectors.
Bangladesh is the world’s second largest exporter of readymade garments. The industry is however heavily dependent on two crucial ingredients, extremely cheap labour and international treaties giving Bangladesh an advantage. The EU provides duty free access to all Bangladeshi products in a scheme aimed at developing the country’s economy.
