Bangladesh Garment Manufacturers and Exporters Association on Friday expressed hope that the US government will revoke the decision to suspend the Generalised System of Preferences (GSP) for Bangladesh.
“Our expectation from the US government is that it will reconsider its decision regarding the GSP facilities for Bangladesh as [it is] an LDC,” BGMEA President M Atiqul Islam told a press conference at the BGMEA headquarters, reports BSS.
Leaders of the garment exporters association were also present.
He said revival of the trade privileges would help Bangladesh’s garment industry play a more important role in the country’s economy.
BGMEA also requested that the US government not only revive the tariff facility, but also take effective steps to make the facility commercially meaningful.
The suspension of the GSP facility may have a long-term impact on overall exports and eventually it will affect the workers of the garment industry, commercial institutions, shipping and transport sectors, Atiqul said.
“The reality is that although Bangladesh has been included in the GSP programme, we could never enjoy the facility.
“Bangladesh had to pay $746m as duty for access to the US market last year,” said the BGMEA chief.
The US, on Thursday, suspended trade privileges for Bangladesh after a six- year review exposed “serious shortcomings” in safety and labour standards.
The decision will bring tariffs back on some of Bangladesh’s exports to US markets under the GSP scheme, though it does not apply to Bangladesh’s chief export, ready-made garments.