White House set to suspend trade privileges for Bangladesh

Froman insisted that while the suspension may appear symbolic — the GSP affects less than 1 percent of the exports from Bangladesh and does not apply to economically dominant clothing industry — that the policy may “have a greater impact than the numbers themselves suggest.”

The decision was made after the review, which was started in 2007, showed that there has been a lack of sufficient progress toward an overhaul of the labor market. To accelerate the pace of changes, the administration is starting up new discussions with the government of Bangladesh to improve the worker rights environment, Froman said. 

The suspension is expected to start at the end of July. 

Democratic lawmakers on both sides of the Capitol who have been pushing for the step welcomed the news. 

House Ways and Means Committee ranking member Sander Levin (D-Mich.) and Education and Workforce Committee ranking member George Miller (D-Calif.) said the decision sends “a strong message that Bangladesh must take serious and concrete action to improve the situation on the ground. We expect this decision will be viewed with interest by others considering similar action, such as the European Union.”

AFL-CIO President Richard Trumka said the decision sends an important message to U.S. trading partners. 

“Bangladesh’s egregious labor practices have been under review for more than six years now, and the Bangladesh government has repeatedly failed to comply with the minimum GSP requirements to afford internationally recognized labor rights to its workers,” Trumka said. 

“Countries that tolerate dangerous — and even deadly — working conditions and deny basic workers’ rights, especially the right to freedom of association, will risk losing preferential access to the U.S. market.”

Since 2005, more than 1,800 workers have died in Bangladesh garment industry incidents, including the most recent collapse of the Rana factory that killed more than 1,110, Trumka said. 

“The suspension of GSP benefits, together with the binding commitment made by over 50 brands to improve fire and building safety in factories, are important steps to improving dangerous working conditions,” he said. 

“The AFL-CIO hopes that the suspension of GSP benefits will be a catalyst to accelerate an effective process involving the government, employers and workers of Bangladesh to achieve these goals.”  

Under the GSP program, which expires July 31, 127 beneficiary developing countries are eligible to export up to 5,000 types of products to the United States duty-free.  

Last year, the total value of imports that came into the U.S. was $19.9 billion, including $34.7 million from Bangladesh, which included tobacco, sports equipment, porcelain china, and plastic products. 

Bangladesh’s government says it is taking steps to improve worker safety after the April 24 collapse in Dhaka. Bangladesh also is considering a worker safety bill.