The European Union (EU) has urged Bangladesh to adhere to all 32 conventions in order to maintain duty-free market access under the Generalized System of Preferences (GSP) policy.
Charles Whiteley, the head of Delegation of the EU in Dhaka, expressed dissatisfaction with Bangladesh's progress in implementing these conventions during a round table discussion on Tuesday. Whiteley emphasized the importance of fair pricing by buyers to suppliers and highlighted that audit issues would be scrutinized under due diligence laws.
The International Business Forum of Bangladesh (IBFB) organized a program titled “Due Diligence Laws” at its head office in the capital, where EU Deputy Chief to Dhaka, Bernd Spanier, presented the keynote address. The event, presided over by IBFB President and Managing Director/CEO of Energypac Power Generation, Humayun Rashid, focused on addressing concerns related to due diligence laws.
In response, apparel exporters accused buyers of neglecting ethical buying practices, calling some brands and buyers “bloodsuckers.” Currently, Bangladesh benefits from the GSP facility under the Everything but Arms (EBA) policy as a Least Developed Country (LDC) and has sought GSP+ status as it approaches graduation in 2026.
In November of 2023, an EU delegation visited Bangladesh to assess the progress on the conventions. Paola Pampaloni, the GSP EU’s external action service director, expressed concern about delays in fulfilling commitments during a meeting with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
During this time, BGMEA President Faruque Hassan said that the EU team provided a roadmap and recommendations on labour law amendments, focusing on issues such as child labour, the EPZ labour act, trade union formation, and general labour rights.
He also said that the delegation threatened that if Bangladesh does not improve in these areas, the EU is likely to remove the GSP facility.
In the keynote paper, Spanier emphasized that due diligence comprises a set of mandatory regulations designed to hold companies accountable for any harm caused to human rights and the environment within their supply chains.
He explained that victims have the right to seek compensation from a company in a European court if they can demonstrate that the harm resulting from a violation of human rights or environmental standards was a result of the company's failure to adhere to proper due diligence procedures.
Spanier outlined that EU national supervisory bodies have the authority to penalize companies if they determine that the companies are not effectively implementing their due diligence procedures. The penalties can be substantial, reaching up to 5% of a company's global turnover, posing a significant consequence, particularly for large global corporations, as stated in the keynote paper.
During the event, Whiteley underscored that due diligence serves the broader global interest in addressing issues such as climate change, child labor, slavery, labor exploitation, pollution, deforestation, excessive water consumption, and damage to ecosystems. Regarding the accession to GSP plus, he acknowledged Bangladesh's commendable ratification of the 32 conventions covering environmental, labor and human rights aspects. Whiteley stressed the importance of moving beyond ratification to the diligent implementation of these conventions, recognizing the ongoing effort required.
The EU Dhaka office chief further said: “I will say to buyers, pay a fair price and treat your suppliers well, because it's in your own interest. This legislation isn't supposed to impose things. It's supposed to actually be a very positive contribution to how the whole world treats business and needs to combat climate change and things like child labour.”
At the discussion, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan said: “The goal we want to achieve through implementing due diligence law is universal and desired by all, so the legislation should be something that is truly global and accepted in all places which is not the case we are witnessing.”
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Executive President Mohammad Hatem requested the EU delegation to make a unified audit system.
He further said: “Brands and buyers are getting greedy, as they are not following ethical buying practices."
IBFB Vice-President and Legal Economist MS Siddiqui focused on ethical, proper, fair product pricing in terms of compliance.
“It is a bilateral thing and you should incorporate a strict law for pricing because the same t-shirt, we got $1 but the buyers sell that for $25.”
