Home RMG News Experts have two shades of opinion on US GSP decision

Experts have two shades of opinion on US GSP decision

Against the backdrop of continuation of suspension of US Generalized System of Preference (GSP) for Bangladesh, two shades of opinion surfaced –whether political reason or workers’ rights issue was instrumental in not granting Bangladesh the trade privileges. One group believes that no other factor but politics influenced the Obama administration in not restoring GSP for Bangladesh while the other group thinks Bangladesh should face the US review process after fulfilling the workers’ rights properly and keep up its effort to regain the trade benefits granted for the developing and poor countries. After suspension of GSP in June 2013, Bangladesh had hoped that it would be provided with GSP facilities as the country fulfilled most of the conditions set by US. But the hope withered away when US on June 29 renewed GSP facilities for 122 countries excluding Bangladesh until 2017. Disheartened at the news, Bangladesh’s Commerce Minister Tofail Ahmed said at a press conference on Tuesday that he is not interested at all to take any initiative to get the decision reviewed. “But I hope the US will consider the status to Bangladesh in the upcoming Ticfa meeting,” the government’s spokesperson said. Tofail observed that only political reason led the US not to reinstate GSP facilities for Bangladesh, though Bangladesh has fulfilled almost all the conditions set by the US. He added that “Many countries do not want to see the rise of Bangladesh. Even Pakistan, where the human rights are continuously flouted and working condition is bad, has been given the GSP facilities.” Against the backdrop, The Daily Observer on Sunday contacted international relations experts, diplomats, economists and leading exporters to have their opinions on the GSP issue. Echoing the observations of the Commerce Minister, Prof Dr Akmal Hussain, a noted International Relations expert said, “I believe that political reason is behind not granting GSP to Bangladesh.” Though US Ambassador to Bangladesh Marcia Stephens Bloom Bernicat ruled out the political reason behind not granting GSP, her words is not acceptable as the Bangladesh government vehemently said that it fulfilled most of the conditions set by US, he said. “Over the years, the relations between US and Bangladesh remained cold. The issue like dislodging Prof Dr Muhammad Yunus from Grameen Bank, January 5 general election in 2014 may have acted as factor in not granting GSP.” the Daka University professor of International Relations Department said. The group that does not smell political reason was also disappointed over the US decision and suggested that Bangladesh should not give up its effort to regain the GSP facilities rather should fulfil the 16 conditions set by the US on July 19, 2013. M Humayun Kabir, former Ambassador of Bangladesh to the United States, said, “We are making progress towards implementation of 16 action plans set by the US. Under the circumstances, Both Bangladesh and US can come to an agreement on fulfilment of the conditions to restore GSP.” Workers’ rights issue had played a great role following a June 22, 2007 petition of the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), the ex- diplomat said. In the petition, AFL-CIO, the largest federation of trade unions in the United States, urged the US administration to cancel the GSP privileges for Bangladesh alleging that workers’ rights were not ensured. “So, workers’ rights is the crux of the problem,” Humayun said. Former diplomat Humayun Kabir thinks, “As US did not annul the GSP facilities for us rather suspended, Bangladesh should continue its initiative to regain the facilities for two reasons. First, we must secure the financial benefits of GSP. Secondly, as the US, in principle and as a matter of policy, offers GSP facilities to developing countries, Bangladesh must claim the GSP privileges fulfilling all the 16 conditions as it is a developing country.” A leading exporter Abdus Salam Murshedy, also the President of Exporters Association of Bangladesh (EAB), said that though we are disappointed for not getting back the GSP, Bangladesh should continue lobbying to reinstate the trade facilities. After the Rana Plaza disaster that took more than thousand lives, the GSP was suspended, he said, adding that many congressmen expressed satisfaction over the Bangladesh’s progress towards 16 conditions. Centre for Policy Dialogue (CPD) Executive Director Professor Mustafizur Rahman said, “I was a member of the Bangladesh delegation in 2014 when we faced review process of the US government. But at that time we could not convince them. Now, situation has changed and if we press for another review by the US administration, I think we will regain the capacity to get back the GSP.” Many people say politics is the prime mover of GSP suspension but I think it is not true, the noted economist said. He added that though the RMG sector was not included in the GSP privileges, GSP is needed for financial benefits for 5000 export items and also for branding. Moreover, the RMG sector of Bangladesh may come up for discussion in the US Congress for duty-free export from Bangladesh if a bill regarding the sector is tabled, Mustafiz said. But, if Bangladesh is not on the list of having GSP facilities, it’s RMG Sector cannot avail the duty- free privileges like 33 countries of Africa. Commerce Minister Tofail said except US, majority of the developed and developing countries are giving duty-free benefit to Bangladesh’s apparel items. Bangladesh exported goods worth more than $5.58 billion to the US, with 95 percent of them being garment products, which were subjected to 15.61 percent duty.