The European Union (EU), which currently accounts for just over 62 per cent of all Bangladesh’s garment exports, has threatened the country of temporarily suspending trade ties if it fails to implement garment worker’s rights. This was stated in a joint communique of three European Commission bodies.
The three bodies the European Commission Directorate General for Trade, the European Commission Employment, Social Affairs and Inclusion, and the European External Action Service have sent a letter to Mohammad Shahdat Hossain, Ambassador of Bangladesh in Brussels in this regard.
They have asked Bangladesh to implement recommendations made by an International Labour Organisation committee last year or else face termination of Generalised Scheme of Preferences (GSP).
Under GSP, currently, Bangladesh enjoys duty-free market access to the EU countries for all products under the Everything But Arms (EBA) preferential tariff scheme. A suspension of this facility could lead up to 12 per cent tariff on imports from Bangladesh. In case of no progress on said matter is observed, the Commission could start a formal investigation, which could result in temporary withdrawal of preferences, the letter said.
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“We do not believe that the EU will stop providing existing trade facilities as Bangladesh has made a lot of progress in ensuring worker rights as well as safety,” Bangladesh Garment Manufacturers and Exporters Association (BGMEA) was quoted as saying by a leading daily.
According to the Export Promotion Bureau (EPB), Bangladesh export to EU countries stood at US $ 18.68 billion in the last fiscal year, which is 54.57 per cent of total export of US $ 34.24 billion. Of the total amount, US $ 17.15 billion came from apparel products.