Govt preparing for hearing at US Congress

The government is preparing to make its case in the US Congress against the petition that sought cancellation of duty-free access of Bangladeshi products into American market over allegations of unsatisfactory labour and fire-fighting conditions in factories.

The Congress is expected to hear the petition in March.

Commerce Secretary Mahbub Hossain informed journalists about the latest status regarding the issue after attending an inter-ministerial meeting at the Secretariat on Sunday afternoon.

Foreign Minister Dipu Moni earlier said she had discussed the issue with US Ambassador Dan Mozena at a meeting.

“We will deliver our response,” Hossain said and added that they will also send a dossier of all the positive activities done in the last four years.

This is the third time such a petition to strip Bangladesh of its duty-free access to the market has been filed since Bangladesh secured the facility in 2007. Bangladesh managed to retain the facility on two previous occasions.

The influential American Federation of Labor-Congress of Industrial Organizations (AFL-CIO) appealed in October last year to revoke Bangladesh’s Generalised System of Preference (GSP).

Products with GSP get duty-free access.

According to the organisation, labour rights are not protected and fire-fighting system is not sufficient in garment and shrimp sectors and at the Export Processing Zones.

United States Trade Representative took the matter into cognisance after the AFL-CIO made the appeal.

Bangladesh was served with a notice to defend itself against the allegation on Jan 31.

Over 100 workers were burnt alive at Tazreen Fashions days after the complaint was filed against Bangladesh, triggering demonstration by US trade organisations in protest against the incident.

Bangladesh is the biggest exporter to US as a single country. But the main export product to US, the readymade garment, does not enjoy this facility.

According to the Export Promotion Bureau, Bangladesh exported goods worth $ 24 billion in 2011-12 fiscal and about 21 percent of the export, which is about $5 billion, was made to the US.

In 2011, Bangladesh enjoyed the GSP facility for exporting products worth about $26.3 million. Items that enjoy the facility include tobacco-products, sport gears, kitchen appliances, and plastic products.