Dhaka, Bangladesh (BBN)- Bangladesh has started working for dealing with the issue as businesses fear it would have a negative impact on the country’s economy.
The government took the move against the backdrop of the possible cancellation of the Generalized System of Preferences (GSP) by the US government.
“Right this moment I could not tell you what type of steps have been taken regarding the possible withdrawal of GSP but I can tell you we have started working on it,” Commerce Minister GM Quader was quoted by the BSS as saying.
The US Trade Representative (USTR) office sought comments from stakeholders by January 31 on the possible withdrawal, suspension or limitation of Bangladesh’s duty-free benefits under the GSP.
Under the GSP program, designated eligible imports from beneficiary developing countries get duty-free access to the US market.
The commerce ministry plans to prepare a ‘position paper’ as the United States Trade Representative (USTR) asked to do it and post it on the government’s website by January, a senior official of the ministry said preferring anonymity.
“I think probable decision to withdraw tariff facility will hamper our export against the backdrop of Bangladesh demands for enhancing the facility especially for RMG,” Shafiul Islam Mohiuddin, President of BGMEA, told the stat-run news agency earlier.
Mohiuddin said the association has been continuing better works on compliance and by now Bangladesh has reformed its labour law with reaching consensus on most of the total 123 clauses of the law.
“Bangladesh is a good partner and friend of US. We have taken massive compliance programmes to improve our labour situation and we will show our initiative before the US so that it considers,” said the BGMEA president.
AKM Salim Osman, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), described the probable US decision as ‘intentional’ and ‘political’ and said Bangladesh gets the GSP facility for some products.
Osman, however, firmly hoped that the US government will consider the decision regarding probable withdrawal of GSP.
He looked back to the period when European Union (EU) cancelled GSP for Bangladesh and again withdrew their decision saying that Bangladesh government will be able to convince the US on the matter and BKMEA is ready to supplement the government to that end.
Bangladesh enjoys only 0.5 per cent from US for export of its few products including plastic and leather to the US market. In 2011, Bangladesh exported products worth only $26 million under the GSP.
BBN/SSR/AD-13Jn1309:40 pm (BST)
