Workplace safety in domestic RMG

RMG in Bangladesh vis-à-vis global supply chain

Recently a resourceful article was published by The Financial Express, featuring research work from ULAB Business Faculty member Muhammad Faisol Chowdhury. It emphasizes the various developments of the RMG sector of Bangladesh, focusing on the pressing issue of worker's safety.

RMG comebacks and challenges

RMG export shines in volume, pales in value

Low price offers from foreign buyers, devaluation of the Euro and rise in production costs make our RMG exports bleak, compared to the 58.17% rise from the last fiscal year of 2014-15. The volume posted was at 1.57 bn units exported earning a total of US $25.49 bn, a 4% rise. Knitwear and woven products scaled up 3.13% and 5% respectively. Improvement in productivity and technology is required to meet the devaluation in the EU and possible monopsony of buyers worldwide.

Generalized System of Preferences (GSP): Bangladesh's inclusion a possibility or a non-necessity?

Focusing not on GSP but on building export capacities

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.