Bangladesh’s biggest trading partner, the European Union, which absorbs most of the readymade garment exports, has vowed to provide 'the best possible’ market access in its effort to improve labour standards.
The EU delegation in Bangladesh in a statement on Sunday said, “The GSP provided by the EU benefits all products from Bangladesh under its Everything But Arms (EBA) scheme."
“This means that a decision to withdraw the EU GSP for Bangladesh must be avoided, as it could have far-reaching consequences for jobs and for the economy,” it said.
The statement comes two days after the US decision to suspend Bangladesh’s GSP facility as a symbolic move to pressurise Bangladesh to improve working conditions and safety the garment industry that have cost more than 1,200 lives in the past one year.
The readymade clothes that boost Bangladesh’s economy do not enjoy the preferential market access in the United States.
The statement also came just a week before the EU Trade Commissioner De Gucht hosted a meeting in Geneva on labour rights and factory issues on July 8 where Bangladesh’s government and garment traders were joined by representatives from the ILO, the US government and some leading buyers.
The EU in the statement said Commissioner De Gucht met Bangladesh's Foreign Minister Dipu Moni on May 28 following Rana Plaza crash “to shape a response which would address the problems in the country, while avoiding hardship for its citizens”.
“Both sides agreed that the key to lasting improvement lies in the engagement of all actors in the supply chain, and of international support for work at a multilateral level which can effect change in the most efficient and comprehensive manner”.
The EU aims to uphold fundamental human rights, of which adherence to core labour standards is a key element.
“This is why the EU is lending maximum support to the ILO process. The EU will also act in full respect of its WTO commitment to avoid discrimination,” the statement read.
The government signed a tri-partite agreement with the employees and workers with the help of ILO in its efforts to improve workplace safety and working conditions after the devastating building collapse where mostly garment workers died.
But that was not good enough to help it retain the US GSP.
The EU said it wished to remain engaged with Bangladesh so that “it can preserve the preferential access to the EU market which has greatly helped socio-economic development over the years”.