1/7/2016

GSP rationalization could have been the alternative of suspension | Bangladesh Textile Today

GSPrationalizationcouldhavebeenthealternativeof
suspension
AbrarAApu,MSc
IssueJune,2013|CategoryEditorial

Slowornogovernmentlevelprogressinlaborstandardsandworkenvironmentsafetyissues
stoodasprominentcausesforthesuspensionofGSP,thetradecatalystbetweenBangladesh
and the USA. The US President can limit products GSP eligibility as described in the GSP
Guidebook,revisedinDecember2012.Withthispower,thePresidentsuspendedtheGSPfor
products from Bangladesh. This new revised guide also included workers rights in
considerationwhilemodifyingorgrantingGSPincontinuation.Therefore,Bangladeshhasto
workonworkersissuesandmustperformbetter,inordertogetGSPbackinheropportunity
basket.
Textile clothing items under GSP were only sleeping bags, handloom woven cotton carpets
andothertextilefloorcoverings.Thesetextileclothingitemsarenotourcoreproducts,thus,
thesuspensionofGSPwillcreatemoreimagecrisisthanfinanciallossforBangladeshitextile
clothingsector.TheforeigninvestmentandjointventuresinBangladeshmaybediscouraged,
buyerslosetheirconfidenceofdoingbusinesswithBangladeshcompetitorsmaymisinterpret
the GSP suspension to our buyers, in order to get trade benefits our best performing
productionhousesmayrethinkongetbacktheirinvestment,initiativesandeffortsthatthey
have already done for retaining GSP facilities from USA.GSP suspension put scrupulous and
unscrupulous business organizations in the same basket. The GSP eligibility guideline for a
factory rather than that for all factories of the nation could be more effective and more
logical.AsinBangladeshiclothingsector100%investmentdoneunderprivateinitiativesand
the investment has been done both in the best possible methods and the worst ways.
Therefore,herewefindseveralbestpreformingclothingfactories/integratedfacilitiesandon
the other side, many poor performing factories where labor right concept is completely
absent.ThefactoriescoulddeservetheGSPfacilitiesthathavebeenmaintaininglaborrights
andworkenvironmentasadvisedinBLL(BangladeshLaborLaw)andILOLaborConvention.
IthereforebelievethattheUSAshouldtakesuchstrategywhichencouragegoodperforming
factories to go on continuous improvement while compel bad performers to rethink on the
issue.
IntermsoflaborstandardsandworkingenvironmentinclothingfactoriesinBangladesh,the
clothingindustryhasachievedimprovedsubstantiallyinlastfewyears.Buttheimprovement
is not so distinctive. The sector started journey in 1978. According to the official record of
198384, there were only 134 clothing factories, which employed approximately 40000
workers.After28yearsin2012,thenumberofclothingfactoriesestablishedis5266means
on an average of 200 clothing factories per year come into operation or one factory in less
thantwodays.Suchahighgrowthoftheclothingindustry,madeitdifficulttomaintainright
andequallaborstandardsinallfactories.
The USA could take alternative initiative rather than direct suspension of GSP which could
keep both countries interest and could encourage deserving factories to do continuous
improvement on labor and work environment issues to enjoy GSP facilities. The alternative
optionscouldhavebeenlikefollowing:
A direct certification system such as GSP qualified factory could be introduced and
implementedbytheUSgovernmentauthorityoranyotherthirdpartycompany.Aboardof
representativesfromBGMEA,BangladeshgovernmentandtheUScouldcontrolandmonitor
the program. The factory that has been maintaining labor standards and working
environmentmayapplyforandthecertificationbody,afterevaluatingthefactorystatusmay
provide certification for GSP capable work facilities. This method fosters competition among
thefactoriestoimrover.ThelessoncanbetakenfromGOTS(globalorganictextilestandard)
byIWG(internationalworkinggroup),whichensureslaborstandards,workingenvironment,
processandproductundersinglecertificate.

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GSP rationalization could have been the alternative of suspension | Bangladesh Textile Today

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