Politics behind non-restoration of GSP, says Tofail Ahmed

Commerce Minister Tofail Ahmed suspects ‘political reasons’ behind Bangladesh not getting back preferential trade facilities from the United States despite fulfilment of the conditions it had set.

Senior Correspondentbdnews24.com
Published : 3 Feb 2016, 04:53 PM
Updated : 3 Feb 2016, 04:53 PM

Speaking in the Parliament on Wednesday, he said, “What other than politics can explain the non-restoration of the GSP (Generalised System of Preference) facilities.”

His statement came in reply to a question by a ruling party MP during the question-answer session.

The US government suspended the trade privilege under GSP for Bangladesh in 2013 after two devastating accidents in the apparel sector – fire at Tazreen Fashions and collapse of Rana Plaza building that housed several RMG units – which claimed over 1,000 lives.

Bangladesh used to enjoy duty-free access to the US market for around 5,000 items under the preferential trade scheme.

The minister said Bangladesh fulfilled all 17 conditions the US had set for restoration of the trade privilege.

He said, “TICFA (Trade and Investment Forum Agreement between the US and Bangladesh) will not be effective unless we can get back the GSP facilities.”

Ahmed said US government representatives acknowledged the ‘good’ relationship between garment factory owners, workers and the government.

“They say the condition has improved (in apparel sector) but further improvement is required. But we don’t know what the basis of their statement is,” he said.

Replying to a question by another MP, the minister said exports to the US market remained almost unaffected as less than 1 percent of Bangladesh’s export basket was covered by the GSP.

He said workers welfare associations had been formed in EPZs and a safe environment created in apparel sector to fulfil the US condition.

“In such a situation, there is no logical ground for the US for not giving back the GSP facilities,” he said.