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Tofail pushes for return of GSP

Star Business Report
Commerce Minister Tofail Ahmed demanded duty-free access of Bangladeshi garment items to the US market at a meeting with US Trade Representative Michael Froman on Wednesday in Washington.
Ahmed also demanded reinstatement of the trade privileges as the government has made tremendous progress toward ensuring labour rights and improvement of workplace safety in the last one and a half year.
Nearly 97 percent of Bangladeshi-origin goods enjoyed duty-free access to the US market until the suspension of the generalised system of preferences for Bangladesh in June last year, in the wake of the Rana Plaza collapse.
But garment, the country's main export, had always remained out of the GSP purview, subjecting garment makers to 15.61 percent duty in the US markets.
Bangladesh paid $746 million in duty to the US customs for exporting a little above $5 billion worth, the country's annual average, of garment items in 2012.
Before suspension, Bangladesh used to export 0.54 percent of its total export, or $26 million, under the GSP scheme to the US in a year.
"Duty-free market access of Bangladeshi apparels into US markets can boost the ongoing progress of the RMG industry that has employed more
than 3 million women in the sector, bringing about positive changes in women's empowerment, child and maternal health, education and other socio-economic sectors," Ahmed said in a statement issued by the Bangladesh embassy in Washington.
Ahmed also briefed US officials on Bangladesh's progresses made in the Action Plan for regaining the GSP to the US market during the Washington meeting.
Bangladesh has taken a series of actions to improve worker safety and labour rights in the garment industry including amendments to labour law and formation of trade unions, Ahmed said. The minister also spoke on the strengthening of government agencies, appointment of inspectors, assessment of fire and building safety, adoption of National Occupational Safety and Health Policy, and launching Better Work Programme.
He also talked about the establishment of hotlines and reviewing of the Bangladesh Export Processing Zones Authority Act. "Due to extensive safety measures the industry has not witnessed any accident since the Rana Plaza incident," Ahmed said.
The government has also increased the minimum wage for garment workers by 219 percent in the last four years, he said.
The government has waived duties on imports of all fire safety equipment which will encourage the owners to install fire-fighting measures cost effectively, Ahmed said.
Ahmed rebuffed the alleged reports of harassment and intimidation of the labour leaders in some garment factories. Ambassador Froman thanked Bangladesh for signing the Trade and Investment Cooperation Forum Agreement.
Froman acknowledged the progress Bangladesh has already made to improve labour rights and factory safety in the garment industry.
Catherine A Novelli, US under-secretary of state for economic growth, energy and environment, said the umbrella programme for GSP is yet to be renewed and once renewed there may be opportunities for Bangladesh.
The remaining issues under the GSP action plan need to be addressed by Bangladesh in the meantime, Novelli said.
Nisha Desai Biswal, IIS assistant secretary of state for South and Central Asian affairs, also spoke.