Delay in review of US GSP will affect B’desh RMG exports
November 20, 2012 - Bangladesh
The delay in reviewing the US tariff reduction facility – Generalized System of Preferences (GSP) – will create a negative impact on the trade relation between Bangladesh and the US, especially exports of Bangladeshi readymade garments (RMG) to the US.
Dan W Mozena, the US Ambassador to Bangladesh said that a petition against Bangladesh’s GSP has been pending for five years, which is the longest in the US history.
He added that the delay in reviewing GSP will create a negative impact on the trade relation between the two countries. He was speaking at a monthly luncheon meeting of Foreign Investors’ Chamber of Commerce and Industry (FICCI) in Dhaka.
According to the US Ambassador, American Federation of Labor and Congress of Industrial Organization (AFL-CIO) have filed a petition against access to tariff reduction facilities by Bangladesh on the basis of the country’s failure to ensure labor rights.
Mr. Mozena further said that the US apparel buyers are concerned over the slow pace of infrastructural changes and the prevailing labor issue in Bangladesh.
He opined that by resolving all the issues constraining the growth of Bangladeshi garment sector with the support of all the concerned stakeholders, the country can become the world’s largest exporter of RMG as well as household textiles.
At present, GSP provides preferential duty-free entry to numerous products imported into the US from over 100 designated beneficiary countries and territories.