US revokes Bangladesh's trade benefits
02/07/2013
“This was not a decision taken lightly by the administration,” said US Trade Representative Michael Froman. He said they had been reviewing the trade status prior to the factory collapse in April which killed 1,130 – the country’s worst industrial accident.
The action “sends an important message to our trading partners”, said Richard Trumka, president of the AFL-CIO, the largest US labour union.
Bangladesh participates in the Generalised System of Preferences, which allows zero or reduced tariffs on some products - although this does not include textiles, which make up 91% of the $4.9 billion in imports to the US. For this reason, the US action has been described as “largely symbolic”. EU action, however, could have a much bigger impact if it were to happen, as its duty-free privileges cover garments, which account for 60% of Bangladesh's exports to Europe.
Separately, 400 workers were taken ill after drinking water at a factory on the outskirts of Dhaka. A similar incident happened at the beginning of June. The Bangladesh Garments Manufacturers and Exporters Association described it as “sabotage” by people with “vested interests”.
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