The US has asked Bangladesh to take tougher measures, including increased fines and other sanctions for violations of labor rights, fire and building standards, as well as appointing inspectors with sweeping powers.
This 11-point action plan to protect labor rights was presented by the United States at the ‘US-Bangladesh Tikfa Intersessional Meeting’ held in Dhaka on Sunday (April 21) under the Trade and Investment Agreement Framework.
According to the United States, if these action plans are implemented, it will be easier for Bangladesh to restore GSP facilities and get loans from the United States International Development Finance Corporation.
After the meeting, Commerce Department Senior Secretary Tapan Kanti Ghosh, who led the Bangladesh delegation, told The Business Standard, ‘If the labor rights situation in Bangladesh is improved, we can get duty-free and quota-free benefits in the US market.’
“We can also take advantage of funds from the United States International Development Finance Corporation,” said the Commerce Secretary, referring to Brendan Lynch, US delegation leader and Assistant USTR Representative for South and Central Asia, and US Ambassador Peter Haas.
Executive President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem told TBS, ‘When the workers commit violence, most of the time the police become plaintiffs and file a case. The police also investigated the case. In this case, if the United States asks to take action against the police, it will not be acceptable. If this happens, the workers will be given immunity from crime.’
He said neither the government nor BGMEA and BKMEA want unfair labor practice. “If any owner or manager practices unfair labor, we also want punishment against them. But in this case, it must be identified first, which are unfair labor practices.
He further said, ‘If the workers vandalize our factory, set arson or beat up our mid-level management, action will be taken against them. If the United States makes such a provision in its own country, then we are also willing to accept it.
Hatim said that the employer has already given an opinion to the Ministry of Labor regarding the relaxation of the requirement to obtain the signature of at least 20 percent of the workers in the case of forming a trade union.
The US has called for the removal of existing restrictions on workers calling strikes, calling them “excessive”. In this regard, Mohammad Hatim said, “No country in the world approves the illegal strike of workers.”
Last November, a European Union delegation also expressed displeasure over the labor situation in Bangladesh. They also made several recommendations to Bangladesh on labor rights protection, the implementation of which will depend on Bangladesh’s access to GSP Plus benefits in this key market post-LDC transition.
What is in the action plan?
In the ‘Bangladesh Labor Action Plan’, the United States said, Bangladesh must ‘take meaningful steps to prevent and hold accountable those responsible for violence and harassment against union organizers, workers and legal protest activities.’
The US has also asked to drop or settle criminal charges against labor activists.
The United States has asked the government to hold accountable factory owners, management and individuals responsible for labor rights violations under the Bangladesh Labor Act and to investigate allegations of such violations.
The action plan also states that the Bangladesh Labor Act (BLA) should be amended in consultation with the International Labor Organization to bring it in line with international labor laws.
The action plan called for workers to be allowed to know official numbers while trying to form unions. It has also been stipulated to authorize legal action against employees who fail to maintain such registers.
Another amendment calls for the removal of ‘excessive’ restrictions on the right to strike and tougher penalties for illegal strikes.
The US asked the government to take measures to ‘fully enforce workers’ rights to organize and collective bargaining in export processing zones’.
In this regard, the United States has talked about bringing EPZs under the Bangladesh Labor Rights Act. The Ministry of Commerce has promised that the Labor Act will be implemented in EPZs by June 2025.
A director of BGMEA told TBS on condition of anonymity, ‘Bangladesh has made huge strides in the ready-made garment (RMG) sector in the last decade. In addition to green factories, we have also invested heavily in technology, which is indicative of our commitment to best labor practices.’
However, when the issues of GSP or duty-free market facilities come up, there are repeated attempts to bring up the trade union issue and use it as a weapon, he said.
He said, active trade unions in Bangladesh work within the framework of the country’s laws and enjoy full independence. ‘But sometimes there are disputes between different unions in the factories. And whenever something untoward happens, the factory is blamed.’
The director of BGMEA said, ‘Despite these strict restrictions of the EU and the United States, we have extended the work order. If the allegations raised were true, we would not have had such confidence in our industry.’
He also said, ‘In many cases trade unions are politically controlled. This raises doubts about the effectiveness of the unions in realizing the rights of the workers.
“Instead we support programs that emphasize training trade union leaders to inform workers of their rights and become more effective representatives in collective bargaining,” he said.
Reinstatement of GSP benefits
After the Rana Plaza collapse in 2013, the United States suspended Bangladesh’s GSP benefits and issued a 16-point action plan as a condition for its reinstatement.
Later, Bangladesh demanded the restoration of GSP facilities by demanding to implement them, but the country repeatedly rejected it and suggested further improvements.
In view of this, in 2017, the government decided not to demand the restoration of GSP. Since then, Bangladesh has been demanding duty-free and quota-free market facilities instead of GSP facilities.
An official of the Ministry of Commerce, who was present at the TIKFA meeting, told TBS that the United States did not directly say anything about GSP or duty-free market benefits if the action plan provided by the United States is implemented.
They said their GSP policy is in the US Congress. Implementation of the action plan will make it easier to get GSP back,’ he said.
The official also said that it was decided at the ministerial conference of WTO held in Abu Dhabi that even after the graduation of LDCs, the countries can give GSP benefits for three years if they want. As a result, if the GSP facility is reinstated, Bangladesh will be able to enjoy it for five years.
Duty free and quota free market facilities
At the meeting, Bangladesh hoped to get duty-free and quota-free market facilities for Bangladeshi garments produced from US cotton.
In this regard, the Labor Secretary said, Bangladesh has withdrawn the double fumigation method for importing cotton from the United States. In return, Dhaka has asked for duty-free market facilities for the export of Bangladeshi clothing produced from US cotton.
But an official of the Ministry of Commerce who was present at the meeting told TBS that no assurance was received from the United States.
According to the Bangladesh Textile Mills Association, the market share of US cotton in Bangladesh was 9 percent two years ago. It has now increased to about 14 percent after the abolition of the double fumigation system.
In this context, Dhaka decided to argue that RMG products manufactured in Bangladesh using cotton imported from the US should be given duty-free export facilities.
Although the cotton import from the US is increasing, Bangladesh’s garment export to the country is decreasing.
According to the Office of Textiles and Apparel (OTEXA) data published on April 4, Bangladesh’s garment exports to the United States in the last two months of January-February were 1.18 billion dollars—which is 19.24 percent less than the same period last year. Its amount was 1.46 billion dollars in January-February last year.
The US imported 395.69 million square meters of garments from Bangladesh in January-February this year—about 12.79 percent less than the 453.73 million square meters shipped in January-February 2023.
Cost of drug registration
An official of the Ministry of Commerce told TBS that Bangladesh has proposed to reduce the cost of registering pharmaceutical products as a less developed country by highlighting the information that it costs more than 6 million dollars to register five products of a Bangladeshi pharmaceutical company with the United States Food and Drug Administration.
The official said that the United States Trade Representative (USTR) has given assurances about this proposal.
In the briefing at the end of the meeting, the commerce secretary said that as a less developed country, a proposal has been made by Bangladesh to transfer technology for the development of the agricultural sector. The United States also agreed to this.
He said, USTR has appreciated Bangladesh’s Intellectual Property Acts. But it asked to emphasize on implementation.
Tags: tougher action violation labor rights firebuilding standards dutyfree facilities
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