As the prospect of retaining Generalised System of Preferences (GSP) facility in the US market is apparently becoming bleak, a prominent economist on Monday said it will have a ‘signaling impact’ on the US buyers and their investment in Bangladesh.
“Actually, I’m still hopeful of retaining the GSP facility. But, if it turns negative, it’ll certainly have a signaling impact, and the US buyers and investors will think of it (afresh),” Executive Director of the Centre for Policy Dialogue (CPD) Prof Mustafizur Rahman told the news agency.
Responding to a question, he said it is a ‘political decision’ and they will consider many things before taking the final decision.
“I don’t think the US has taken the final decision yet.”
Prof Rahman said the European Union and Canada have already issued warning messages but he does not think they will take any serious decision that will hurt Bangladesh’s interests.
“There’re many steps taken by the government. The labour law has already been amended and approved by the Cabinet. I think the US authorities will consider it.”
Responding to another question, Prof Rahman said there is no direct link between signing the Trade and Investment Cooperation Framework Agreement (Ticfa) with the US and retaining the GSP facility.
“But, if Ticfa is signed, a positive environment will prevail. Signing Ticfa doesn’t mean GSP will be retained. Actually, after Rana Plaza tragedy, the process got complicated a bit,” he said.
Contacted, President of Bangladesh Exporters Association (BEA) Abdus Salam Murshedy said, “It’s a government-to-government process. We’re doing our best to satisfy them. It’s true we’re under pressure after the recent accident.”
Murshedy, also a former BGMEA president, said they need to show the US authorities practically that these are the changes they’ve brought in. “I hope it’ll remain as it (GSP) was.” Former first vice vive president of the BGMEA, M Nasiruddin Chowdhury said they do not think that things will turn negative. “What I understand is that they’ll take time to take the final decision. They’ll monitor entire things closely.”
Commerce Minister GM Quader has recently said after the Rana Plaza collapse it has become difficult to expect a positive result from the United States Trade Representative (USTR) hearing on the GSP facility.
US Ambassador Dan W Mozena, he said, has passed on a grim feedback from the United States Trade Representative.
Under the GSP scheme, a host of Bangladeshi products enjoy duty-free entry to the US market at present.
Following the Tazreen fire last year that killed 112 workers, American Federation of Labour and Congress of Industrial Organisation, the largest trade union in the US, filed a petition for discontinuation of GSP for Bangladesh.
-With The Independent input
