The European Union (EU) said on Sunday a decision to withdraw the EU Generalised System of Preferences (GSP) facility for Bangladeshi products must be avoided. In a statement it said, “the EU wishes to remain engaged with Bangladesh, so that it can preserve the preferential access to the EU market which has greatly helped socio-economic development over the years,” said an EU statement on Sunday. The EU, which is the largest market for Bangladeshi readymade garments (RMG), further stated that withdrawal of the trade benefit for Bangladesh must be avoided.
“The GSP provided by the EU benefits all products from Bangladesh under its Everything but Arms (EBA) scheme. This means that a decision to withdraw the EU GSP for Bangladesh must be avoided, as it would have far-reaching consequences for jobs and for the economy,” the statement added.
The European bloc, however, made it known that the International Labour Organisation (ILO) would monitor the efforts to improve labour conditions in Bangladesh. “The ILO will monitor progress in the joint efforts by stakeholders in improving the labour conditions in Bangladesh this year and throughout 2014,” the statement said, adding:
“The EU will follow this process closely.”
It added: “The EU aims to uphold fundamental human rights, of which adhering to core labour standards is an intrinsic part. This is why the EU is lending maximum support to the ILO process. The EU will also act in full respect of its WTO commitment to avoid discrimination.”
The EU assurance comes as a relief for Bangladesh following the recent decision by the Barack Obama administration to suspend the preferential access facility for Bangladeshi goods in the US market.
As of June, Bangladesh RMG exports to EU market stood at USD 11.37 billion. Under the US GSP, less than 1 per cent of the total exports enjoyed the benefits while all Bangladeshi products, except arms, get duty-free and quota-free access to the EU market. The EU, an economic and political union of 28 member states, also said that its trade commissioner Karel De Gucht would host a meeting in Geneva on July 8 and it would be attended by a high-level team from the Bangladesh government, the ILO, and the US government. There will be also representatives from the RMG exporters’ association, some leading buyers and trade unions.The meeting, entitled “Staying Engaged: A Sustainability Compact with Bangladesh”, will focus on ensuring labour rights, safety and health at workplaces, and responsible business conduct.
Following the recent industrial disasters in Bangladesh, De Gucht had met Bangladesh’s foreign minister Dr Dipu Moni on May 28 to discuss the problems in the country and the ways to avoid hardships for its citizens.
“Both sides agreed that the key to a lasting improvement lies in the engagement of all actors in the supply chain, and of international support for work at a multilateral level which can effect change in the most efficient and comprehensive manner,” the EU statement said.
-With The Independent input
