LETTER OF TRANSMITTAL

Date: 22 April, 2015

Mr. Subod Devnath,
Assistant Professor ,Department of International Business, University of Dhaka.
Subject: Submission of Assignment
Dear Sir
Greetings,
We would at first like to acknowledge the outstanding support and help that the
honorable Course Teacher Mr. Subod Devnath has provided throughout the whole
venture of completing this assignment. Without his superb supervision and
indispensable guidelines, carrying out this huge task would not have been possible.
Without the unbelievable help and support from the above person, completion of this
venture would never have been a reality. We are truly indebted to this extraordinary
person.
We are submitting the assignment regarding the GSP EFFECT ON BANGLADESH.
While writing the assignment, we have gathered factual and statistical information,
analyzed them and expressed my own decisions, opinions and views based on those
information. During the assignment, we have learnt a great deal on world economics
and the related issues. Please forgive us if there is any mistake in this short endeavor
of analysis.
Thank you for your time and kindness.

Sincerely,
Group (2)

TABLE OF CONTENTS

TOPICS

PAGE NO.

Letter Of Transmittal

(i)

Table Of Contents

(ii)

Executive Summary

(iii)

CHAPTER 01 : INTRODUCTION
1.1

Statement Of The Research Problem

02

1.2

Scope & Objectives Of The Study

02

1.3

Methodology Of The Study

03

1.4

Limitation Of The Study

03

CHAPTER 02 : AN OVERVIEW OF GSP EFFECT

2.1

Overview Of GSP

05

2.2

RMG and GSP facility

06

2.3

GSP Facility Of Bangladesh

07

2.4

USA Suspended Bangladeshs GSP In June 2013

07

2.5

GSP Cut An Opportunity For Bangladesh

09

2.6

EU Continues GSP For Bangladesh

10

2.7

Slow Progress In Getting Back GSP Facility

11

2.8

Present Condition Of GSP

13

CHAPTER 03 : EFFECTS OF GSP

3.1

Effects Of GSP

16

3.2

Reasons for GSP Suspension

18

3.3

Real Scenario After GSP Suspension

19

3.4

Effects of RMG sectors Violence in EU GSP

19

CHAPTER 04 : RECOMMENDATION & CONCLUSIONS

4.1

Recommendations

21

4.2

Conclusions

24

Bibliography

25
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EXECUTIVE SUMMARY
The U.S. Generalized System of Preferences (GSP) program provides non-reciprocal,
duty-free tariff treatment to certain products imported from designated beneficiary
developing countries. The United States, the European Union, and other developed
countries have implemented similar programs since the 1970s. The U.S. program was
first authorized in Title V of the Trade Act of 1974, and is subject to periodic renewal
by Congress. The GSP program was most recently extended until July 31, 2013, in
Section 1 of P.L. 112-40, and has not been renewed.
The expiration of GSP means that renewal of the program may continue to be a
legislative issue in the 114th Congress. In recent years, GSP renewal has been
somewhat controversial. In the 113th Congress, controversy arose over the funding
provisions in Senate bill S. 1331 seeking to renew GSP. Other GSP legislation
introduced in the 113th Congress included H.R. 2709, H.R. 2139, and H.R. 1682.
U.S. implementation of GSP requires that developing countries meet certain criteria
to be eligible for the program. GSP rules of origin require that at least 35% of the
appraised value of the product be the growth, product, or manufacture of the BDC.
In Chapter 1, we have focused on the statement of the problem, objective,
methodology and limitations.
In Chapter 2, we have tried to focus on about GSP related topics. When it started and
how long it continued until the cancellation.
In Chapter 4, we have focused advantages and disadvantages of GSP effect in
Bangladesh.
In Chapter 4, we have focused on how Bangladesh are trying to bring back GSP and
conclusion of the assignment.

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