The much-sought after Generalised System of Preference (GSP) — the trade privileges enjoyed by Bangladesh — which was suspended by the US in 2013, following a devastating fire at Tazreen Fashions and the collapse of Rana Plaza building, is yet to be restored. And according to Bangladesh Commerce Minister Tofail Ahmed, there seems to be a political angle to this stance.
Also Read – Improve RMG sector’s working conditions to regain GSP: Bernicat to Bangladesh
Speaking in the Parliament recently, Tofail reportedly maintained that he suspects ‘political reasons’ behind Bangladesh not getting back the GSP facility, despite fulfilling the conditions laid down by USA. “What other than politics can explain the non-restoration of the GSP facilities,” Tofail reportedly said, adding, “TICFA (Trade and Investment Forum Agreement between the US and Bangladesh) will not be effective unless we can get back the GSP facilities.”
The Commerce Minister further underlining that Bangladesh has fulfilled all 17 conditions the US had set for restoration of the trade privilege, observed: “They say the condition has improved (in the apparel sector), but further improvement is required. But we don’t know what the basis of their statement is?”
Also Read – Bangladesh Closer than Ever to Get Back GSP: US
It may be mentioned here that participating at an event recently, the US Ambassador in Dhaka Marcia Stephens Bloom Bernicat called upon the garment sector of Bangladesh to improve the working conditions of the workers involved in the apparel manufacturing, in order to regain the GSP. “Importers will not like to buy garments from Bangladesh unless the country improved its working environment in the sector,” Bernicat had reportedly said.
The Generalized System of Preferences, or GSP, is a preferential tariff system that provides for a formal system of exemption from the more general rules of the World Trade Organization (WTO). Specifically, it’s a system of exemption from the most favoured nation principle (MFN) that obliges WTO member countries to treat the imports of all other WTO member countries no worse than they treat the imports of their ‘most favoured’ trading partner. In essence, the MFN requires WTO member countries to treat imports coming from all other WTO member countries equally, that is, by imposing equal tariffs on them, etc.
