US move to cut trade privileges 'shocking': Bangladesh

DHAKA: Bangladesh on Friday criticised a "shocking" decision by the United States to cut trade privileges in the wake of a deadly garment factory collapse, insisting it had taken concrete action to improve safety.

"It cannot be more shocking for the factory workers of Bangladesh that the decision to suspend GSP comes at a time when the government of Bangladesh has taken concrete and visible measures to improve factory safety and protect workers' rights,"  a foreign ministry statement said.

"While Bangladesh is absolutely respectful of a trading partner's choice of decisions, it expresses its deep concern that this harsh measure may bring in fresh obstacles in an otherwise flourishing bilateral trade," it added.

The US on Thursday announced it was removing duty-free trade privileges which had been accorded to Bangladesh under Generalized System of Preferences (GSP) programme, citing dangerous conditions for workers after more than 1,100 people were killed in a factory disaster in April.

Although the GSP programme does not cover the garment industry, the move will increase the pressure on Dhaka to take credible moves to increase workplace safety after a series of disasters in the sector which accounts for 80 percent of its $25 billion exports.

The cut means importers of some Bangladesh products will now have to pay duties on them to bring them into the US and is also an embarrassment to the government which declared a series of safety initiatives after the April 24 disaster at the Rana Plaza garment factory complex, near Dhaka.

Announcing the move in a presidential order, US President Barack Obama said that Bangladesh "has not taken or is not taking steps to afford internationally recognised worker rights to workers in the country."

In its reaction, the foreign ministry said it hoped that top retailers such as the US giant Wal-Mart would not divert its orders elsewhere.

"Bangladesh hopes that despite this setback the buyers would continue their business with their long trusted partners and allow the US-Bangladesh trade to grow further," said the ministry.