2013-06-28 16:46:18

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)








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