Bangladesh still has more work to do on factory safety before it will be allowed back in the Generalized System of Preferences, a U.S. duty-free import program.
An inter-agency review led by the Office of the U.S. Trade Representative determined that Bangladesh has made progress over the past year to address garment factory safety issue, but the country still has more work to do before it will be allowed back in the Generalized System of Preferences, a U.S. duty-free import program.
President Obama suspended Bangladesh from GSP in June 2013 based on Bangladesh’s failure to meet eligibility requirements related to worker rights.
“We urge the government to complete remaining factory inspections as soon as possible to prevent recurrence of workplace tragedies such as those that occurred in 2012 and 2013,” said U.S. Trade Representative Michael Froman in a statement. “We also urge the government to accelerate its efforts to ensure workers’ rights and to take measures to address continuing reports of harassment of and violence against labor activists who are attempting to exercise their rights.”
The Bangladesh government has conducted more than 2,000 initial safety inspections of factories in the ready-made garment sector over the last year, most by teams organized by private sector initiatives led by North American and European brands and retailers. These inspections resulted in the closure of at least 31 factories, the partial closure of 17 additional factories, and the identification of needed improvements in hundreds more. The government is responsible for the inspection of several hundred more factories and has hired additional inspection teams to carry out the inspections, USTR said.
In 2012, the total value of U.S. imports from Bangladesh under GSP was $34.7 million; the top GSP imports from Bangladesh included tobacco, sports equipment, porcelain china and plastic products.
Legal authorization for duty-free treatment for all countries under GSP expired on July 31, 2013. The Obama administration has urged congressional action to reauthorize the GSP program.
U.S.: Bangladesh not yet ready for GSP return
