Worker safety concerns bring on US sanctions against Bangladesh
Updated: Jun 28, 2013 04:54:22pm
New Delhi, Jun 28 (KNN) The United States has decided to suspend trade privileges to Bangladesh owing to concerns about labour rights and insecure working conditions.
“The US order suspends Bangladesh's duty-free trade privileges under the terms of a trade programme called the Generalized System of Preferences (GSP), designed to promote economic growth in developing countries,” said a BBC report.
US President justified the move saying, Bangladesh was not taking steps to afford internationally recognised rights to its workers.
The decision, according to the report, came after a yearlong review of labour practices and work place safety in Bangladesh.
However, the second largest apparel exporter after China has expressed anger at this suspension, criticising the decision. Their foreign ministry called it harsh, given the various measures it had taken recently to improve safety at their garment factories.
As many as 1,127 people died when the eight-storey Rana Plaza near Dhaka collapsed on April-24, a day after cracks were noticed on the structure. The incident drew world attention to safety standards at factories, and sparked angry protests.
Significantly, it prompted reforms by the government, including better wages, working conditions and more inspections while international brands endorsed the improvement in safety conditions.
Nevertheless, experts say that another tragedy could occur at any time, considering that a large number of factories continue to operate in sub-standard facilities.
The reports also says the decision which comes into effect in 60 days, is mostly symbolic as it covers less than one per cent of Bangladesh's nearly USD 5bn exports to the US and it does not affect clothing exports. However, it could have an influence over the European Union's review into similar privileges.
The European Union is the largest market for garments from Bangladesh, accounting for 60 per cent of exports. The garment industry employs some four million people in Bangladesh, 80 per cent of them women. (KNN)
“The US order suspends Bangladesh's duty-free trade privileges under the terms of a trade programme called the Generalized System of Preferences (GSP), designed to promote economic growth in developing countries,” said a BBC report.
US President justified the move saying, Bangladesh was not taking steps to afford internationally recognised rights to its workers.
The decision, according to the report, came after a yearlong review of labour practices and work place safety in Bangladesh.
However, the second largest apparel exporter after China has expressed anger at this suspension, criticising the decision. Their foreign ministry called it harsh, given the various measures it had taken recently to improve safety at their garment factories.
As many as 1,127 people died when the eight-storey Rana Plaza near Dhaka collapsed on April-24, a day after cracks were noticed on the structure. The incident drew world attention to safety standards at factories, and sparked angry protests.
Significantly, it prompted reforms by the government, including better wages, working conditions and more inspections while international brands endorsed the improvement in safety conditions.
Nevertheless, experts say that another tragedy could occur at any time, considering that a large number of factories continue to operate in sub-standard facilities.
The reports also says the decision which comes into effect in 60 days, is mostly symbolic as it covers less than one per cent of Bangladesh's nearly USD 5bn exports to the US and it does not affect clothing exports. However, it could have an influence over the European Union's review into similar privileges.
The European Union is the largest market for garments from Bangladesh, accounting for 60 per cent of exports. The garment industry employs some four million people in Bangladesh, 80 per cent of them women. (KNN)
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