Ticfa with US will be meaningless if GSP not revived for Bangladesh, Tofail says

The Trade and Investment Cooperation Forum Agreement will not be implemented if the US does not restore GSP facilities for Bangladesh, Commerce Minister Tofail Ahmed has hinted.

“The GSP facilities should be returned to make Ticfa meaningful. Otherwise, the Ticfa meeting in November will not be meaningful.”

He was speaking to reporters on Tuesday after meeting a USTR delegation led by Assistant US Trade Representative for South and Central Asia Michael Delaney.

The Awami League government in 2013 signed the Ticfa agreement with the US. Soon afterwards, the Obama administration suspended GSP facility over dangerous work conditions in the garment industry.

The US gave Bangladesh a 16-point action plan at the time to get back the preferential trade privilege. Although Bangladesh claims to have fulfilled most of the clauses, Washington did not include Bangladesh in its updated list of eligible countries for GSP facility last August. 

Speaking about the meeting with the USTR delegation, Ahmed said, “They have admitted that we have met most of the 16 conditions they set.”

“They have expressed satisfaction over Bangladesh’s progress in meeting the conditions and the developments,” he added.

But Delaney, in a press meet, said there was an assessment by “some” in Bangladesh that the action plan had already been fulfilled. “But the fact is that our own tracking of the items in the plan indicates that more needs to be done.” 

“Such as freedom of association, greater transparency with respect to unfair labour practices, and union registration both outsides and inside the EPZs.

“These are the areas where improvements must be made in order to fulfil the action plan,” he said.

Ahmed, however, claimed workers in the EPZs did not want trade unions.

He said they had spoken to the workers in a visit to Chittagong EPZ. “The workers told them that they are happy. There is no concern over safety [at workplace].”

“I told them (US delegation) that we can’t do more than this,” said the minister apparently irked by the US move.

“I have told them that returning the GSP facilities or not returning them is their decision now.”

Tofail has been maintaining that this GSP decision was political. But the US officials deny it. 

Delaney said the criteria to suspend GSP were “transparent” and applied “equally to all countries” and said the timeline for getting back the GSP facility depends on Bangladesh. 

Under the GSP, 5,000 types of Bangladeshi goods enjoyed duty-free access but the multi-billion dollar readymade garment export was not included.

Although it did not leave much effect on Bangladesh’s exports, the decision sent negative image across the world about Bangladesh’s factory safety and labour rights standards.

The commerce minister said, “The facility was extended for some items including plastic, tobacco, ceramic and tableware, which is not more than $23 million.”

“Bangladesh’s current exports are more than $31 billion. So even though there was not much financial damage, it was about image crisis.”