Editorial
US's suspension of GSP facility
Meet the challenge head-on
THE US government's decision to suspend Generalised System of Preference (GSP) facility for Bangladesh has disappointed us. It is undoubtedly unfortunate, and our government has given its reaction in so many words.
As the rationale, the US has cited its concern over labour rights and workers' safety in Bangladesh.
We had hoped that such an eventuality would be averted given Bangladesh's redoubled efforts to raise labour rights and safety standards in the recent months.
Even so, there is no reason for us to be overly upset about this coming from one of our biggest global trading partners.
As only less than one per cent of the total annual volume of Bangladeshi exports worth around $5 billion to the US market will be affected, the US measure, in effect, is going to have a symbolic rather than a quantitative impact on the trade between the two countries. But there is every reason to take the US step seriously, since it may affect our reputation in the US, European and other international markets negatively.
However, it is only suspension rather than outright withdrawal of the facility as such. For there will be review of the situation and possibility of resumption of the facility depending on our progress in terms of meeting compliance standards.
We should be complying with the labour rights and safety standards of our own volition. It is in our best interest to do so.
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