Recently the US has renewed the system of duty or tax-free imports into its economy from 122 other countries, termed Generalized System of Preferences (GSP), but not Bangladesh. Although the US stated Bangladesh has made progress in fire and safety precautions, additional modifications are needed, especially labor rights and harassment issues, which must be under the direction of the ILO, EU and other international associates thereby adhering to Sustainability Compact act. Controversially, the issue may be entirely US political, where Sri Lanka sustaining many good conditions, are still out of GSP.
The GSP only affects non-apparel exports which are the preferences of the US.
The ratio of
exports of Bangladesh sits at $2 million US tax for $35 million GSP goods and $732 million US tax for $4.9 bn clothing exports. GSP preferential basket contains tobacco, porcelain china, plastic, etc. Nevertheless, since total export consisted of 95% garments, work rights and safety issues in those factories impacts GSP inclusion. With at least 31 factories closed since losing GSP status in June 2013, recent visits by the US and the EU Ambassador other international delegates were satisfied with two factories in Gazipur.
The ratio of
exports of Bangladesh sits at $2 million US tax for $35 million GSP goods and $732 million US tax for $4.9 bn clothing exports. GSP preferential basket contains tobacco, porcelain china, plastic, etc. Nevertheless, since total export consisted of 95% garments, work rights and safety issues in those factories impacts GSP inclusion. With at least 31 factories closed since losing GSP status in June 2013, recent visits by the US and the EU Ambassador other international delegates were satisfied with two factories in Gazipur.
With recent improvements in Bangladesh and with talks of the nation achieving middle-income status, the EU’s GSP facility may be lost due to review. GSP Plus would have to be local exporters’ new target, particularly garments, with higher work safety standards. Exports to the EU were $12.13 bn last year.
See more in these links:
Tofail: GSP suspension for export to US politically motivatedUS leaves out Bangladesh from GSP
BGMEA-EU MP MEETING : Govt, exporters urged to begin groundwork for GSP plus - See more at: http://newagebd.net/145586/bgmea-eu-mp-meeting-govt-exporters-urged-to-begin-groundwork-for-gsp-plus/#sthash.p4e5zjSS.dpuf
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