Bangladesh hopeful of GSP amid US nonchalance
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Bangladesh continues to stay hopeful of the revival of its Generalised System of Preferences (GSP) status in the US market although the going to officials of america Trade Representative (USTR) gave no such assurance found in the fifth round of a Ticfa getting together with in Dhaka yesterday.
"We strongly urged the USTR delegation for the reinstatement of the GSP to the united states market as we've improved our workplace safe practices and labour privileges a lot," explained Md Jafar Uddin, secretary to the commerce ministry.
The GSP reinstatement was widely discussed at the meeting held between your USTR and Bangladesh beneath the Trade and Expenditure Cooperation Forum Agreement (Ticfa) at the InterContinental hotel in Dhaka.
Ticfa was signed found in November 2013 to make a program for negotiating trade and expense between your two countries.
Bangladesh also sought financial and technical assist with strengthen trade negotiation expertise and export capacities after graduation from least developed to a good developing region, Jafar told The Daily Superstar after the meeting.
The Bangladesh side demanded fair prices during sale of goods, especially garment items.
Bangladesh also discussed expenditure, removal of trade barriers, easing market gain access to, increasing bilateral trade, intellectual property or home rights, cotton problems and the digital overall economy.
The USTR did not talk to the media following the meeting.
The US delegation showed interest in investing in the ICT and digital economy and sought waiver of fumigation test of US cotton at the port of entry in Bangladesh, Jafar said.
"We advised them that fumigation is usually important due to safety concerns. Plus they are convinced," explained the secretary, who headed the Bangladesh side in the meeting.
The GSP status, a preferential tariff system which gives tariff reduction on various products, was suspended for Bangladesh following a nation's deadliest commercial accident, the collapse of Rana Plaza in 2013.
The suspension came in June that year, citing poor working conditions and a lack of labour rights in the garment sector. The outfits industry, Bangladesh's primary export earner, by no means enjoyed GSP in america market.
The USTR had also outlined 16 conditions to be met by Bangladesh if the country wish to reclaim the GSP status.
Improvements followed in electrical, fire basic safety and structural issues in factories. Labour regulations were as well amended to boost worker's rights according to the recommendations.
Progress reports on place of work basic safety were submitted to the USTR twice. On the other hand, the USTR did not reinstate GSP status for Bangladesh as the government observed that further improvements, especially in labour rights, were required.
Currently, the government does not provide GSP status to apparel items from virtually any country however the duties imposed differ from nation to nation.
The full total value of exports from Bangladesh to the united states beneath the GSP was $34.7 million until it had been scrapped. Beneficiaries included sectors such as for example tobacco, sports tools, porcelain and plastic goods.
THE UNITED STATES is Bangladesh's single major export destination. As a least developed country, 97 % of the goods originating from Bangladesh had appreciated duty-free benefits in the US markets according to a decision taken through the Hong Kong Ministerial Getting together with of the Environment Trade Organization in 2005.
Even so, the country's main export item, garments, had not been contained in the 97 per cent package. Garment exports account for 95 % of Bangladesh's exports to the US.
Because of this, Bangladeshi exporters face 15.62 % duty on the export of clothing what to the US markets.
In fiscal 2017-18, Bangladesh exported goods worthwhile $5.98 billion to the united states marketplace while importing goods worth $1.70 billion, regarding to info from the commerce ministry.
Source: https://www.thedailystar.net