U.S., Bangladesh Sign Pact that Targets GSP Restoration, Says USTR Spokeswoman
The U.S. and Bangladesh signed on Nov. 25 an economic pact that provides an avenue to discuss actions needed to restore Generalized System of Preferences (GSP) status for Bangladesh, said a U.S. Trade Representative (USTR) spokeswoman. The Trade and Investment Cooperation Forum Agreement (TICFA) builds off a Bangladesh GSP Action published by the administration in July, said the spokesman, which seeks to increase Bangladeshi government inspection of manufacturing facilities and improve freedom of association (here).
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The TICFA enables the U.S. “to track and discuss Bangladeshi efforts to improve worker safety and worker rights,” USTR chief Michael Froman also said in a Nov. 25 press release (here). “This is an important priority for the United States as Bangladesh seeks to prevent more tragedies in its ready-made garment sector.” USTR decided in late June to rescind GSP status for Bangladesh following a series of labor disasters in the country, culminating in the April 24 Rana Plaza factory fire that claimed nearly 1,200 lives (see 13071613).
Signed by Bangladesh Secretary of Commerce Mahbub Ahmed and Acting Deputy U.S. Trade Representative Wendy Cutler, the pact also provides a mechanism to discuss bilateral trade and investment, said the press release. The International Labour Organization, the Alliance for Bangladesh Worker Safety, the Accord on Fire and Building Safety, and the Bangladesh University of Engineering and Technology also signed a private-industry agreement to improve building and fire safety in the Bangladeshi manufacturing sector, said a joint Nov. 20 release (here).
The organizations developed consensus on a “minimum criterion for fire and structural inspection safety standards, pending a few final modifications,” said the release. “The United States and Bangladesh are working together on many bilateral trade issues. The TICFA and ILO/Alliance/Accord agreement both provide forums for this continued dialogue,” the USTR spokeswoman added.