US suspends Bangladesh trade privileges over labour rights
28 June, 2013 - President Barack Obama announced Thursday the suspension of U.S.
trade privileges for Bangladesh because of concerns over labor rights and worker safety
that intensified after hundreds died there in the global garment industry's worst
accident. Obama said Bangladesh was not taking steps to afford internationally recognized
worker rights to employees in the South Asian country. U.S. Trade Representative
Mike Froman said the U.S. will, however, start new discussions with Bangladesh on
improving workers' conditions so the duty-free benefits that cover some 5,000 products
can be restored. He didn't say when that might be, noting that it would depend on
Bangladesh's actions. Bangladesh's Foreign Ministry called the suspension ``harsh''
and had been taken despite its concrete actions to improve factory safety. The
U.S. move does not directly affect Bangladesh's multi-billion-dollar clothing exports,
since garments are not eligible for U.S. duty cuts. But it could prompt the European
Union into similar action, which would have a bigger impact as Bangladesh's clothing
and textiles exports to the EU are duty-free. Thursday's announcement was the culmination
of a yearslong review of labor conditions in the impoverished country. Democratic
lawmakers have been pushing for the step since the April 24 collapse of Rana Plaza
in Dhaka that killed 1,129 people. In November, a fire at a garment factory killed
more than 100 people. (Source: AP/Reuters)