Bangladesh needs to be compliant with human rights standards before LDC graduation: Whiteley

Bangladesh has to be prepared to comply with human rights standards as it is poised to graduate from the Least Developed Country (LDC) status to a middle-income nation by 2026, Charles Whiteley, ambassador and head of delegation of the European Union to Bangladesh, has said.

He made the remarks at a seminar, "Due Diligence Laws", organised by the International Business Forum of Bangladesh (IBFB) at its office in the capital's Tejgaon yesterday.

Bernd Spanier, deputy chief of the European Union to Bangladesh, delivered the keynote paper at the seminar.

He said, "Victims can claim reparations from a company in a European court if they can show that the damage they suffered through a violation of human rights or environmental standards was caused by the companies' failure to follow proper due diligence procedures.

"…and maybe more effectively, the EU's national supervisory bodies will be able to sanction companies if they find that the companies do not properly implement their due diligence procedures. The sanctions can go as high as 5% of a company's global turnover, which can be especially painful for large global companies."

Spanier also said, "It is a responsibility because the law applies not only to the EU companies' own operations, but the whole supply chain will come under its jurisdiction. Brands will also bear responsibility for the consequences of their suppliers' treatment of workers and the environment. To avoid hefty fines in Europe, EU brands and retailers could move towards suppliers that are best in compliance.

"Therefore, to remain competitive, Bangladeshi suppliers would need to check in their operations any violation of worker rights and environmental standards."

The discussants expressed their opinions on leniency towards the manufacturers of RMG by the counterpart (European Union buyers). There will be a cost-effective measure in implementing the "Due Diligence Laws" which the buyers should consider during the negotiation of prices.

Bangladesh Garment Manufacturers and Exporters Association President Faruque Hassan; Bangladesh Knitwear Manufacturers and Exporters Association Executive President  Mohammad Hatem; and Bangladesh Textile Mills Association President Mohammad Ali Khokon spoke, among others, while IBFB President Humayun Rashid presided over the programme.

Speaking at the seminar, Faruque Hassan underscored the need for due diligence laws which will be global and accepted in all places.

He said, "The goal we want to achieve through implementing due diligence law is universal and desired by all. So legislation should be something that is truly global and accepted in all places, which is not the case we are witnessing."

Faruque Hassan also said, "On one hand, it is increasing the cost of compliance for the manufacturers. On the other, factories vary in terms of cost competitiveness and capacity levels, which is making it more difficult for them to comply with several legislations when it can be done in a universal way.