Bangladesh can regain GSP in US market with improved labour rights, says commerce adviser

Commerce Adviser Sheikh Bashir Uddin has said Bangladesh can regain Generalized System of Preferences (GSP) in the US market if labour rights are effectively implemented.

The US authorities are pushing for the quick implementation of an 11-point agenda on labour rights, which includes modernising labour laws. If Bangladesh follows through, it could gain more trade benefits in the US market, he added.

The adviser made these statements during a press conference following a meeting with a 20-member delegation led by Kelly M Fay Rodríguez, the US Department of State's special representative for International Labor Affairs, at the Ministry of Commerce's conference room today (24 November).

The meeting was attended by Md Selim Uddin, secretary of the commerce ministry, Megan Boldin, the US Embassy's chargé d'affaires in Dhaka, and other officials.

"If labour rights are properly enforced, Bangladesh will definitely regain GSP benefits. To qualify for GSP benefits in the US market, export companies must follow ILO (International Labour Organization) conventions, local labour laws, relevant regulations, buyer conduct codes, and their own company rules," the adviser said.

During the press conference, Commerce Secretary Selim Uddin said, "The Ministry of Labour and Employment is working to ensure labour rights. Steps have been taken to improve workers' living standards and protect their right to form unions. The Ministry of Commerce is also involved in these efforts."

Selim Uddin also said, "The US delegation is visiting as part of a regular trip. Our discussions focused on increasing trade and market access for Bangladesh. The US delegation has shown support in these areas. They also highlighted the importance of workers' rights, security, minimum wages, and other related issues."

He added, "The government has launched many reforms, with a team focused on improving the labour sector. The Ministry of Labour and Employment, the Ministry of Foreign Affairs, the Ministry of Commerce, the Ministry of Finance, and the Chief Advisor's Office are all working together. These efforts have been shared with the US delegation."

A source at the meeting said, "The US delegation stressed the need to simplify the process for forming trade unions. They want the labour law to be amended quickly, including bringing Export Processing Zones into the process. The US will offer support if the government's efforts in these areas are clear and visible."

The GSP, introduced in 1976, is a trading scheme allowing least developed and developing countries to export goods to the US at reduced or no duties.

However, the Obama administration suspended Bangladesh's GSP status in June 2013 due to unsafe conditions in the garment industry, following the Rana Plaza collapse and the Tazreen Fashions fire.

Although the suspension did not directly affect Bangladesh's lucrative garment exports to the US, which were ineligible for GSP benefits, the program was ultimately cancelled for all beneficiary countries in December 2020.