"I do not think the US would take any such decision," he said. The two-month deadline ended yesterday.

"The deadline is irrelevant when negotiations are going on (between Dhaka and Washington)," Khosru said when his attention was drawn on the two-month deadline regarding the implementation of the trade union rights in the factories under Bangladesh Export Processing Zones Authority (Bepza).

Referring to the tripartite committee drawing representatives from the government, the World Bank and the US embassy in Dhaka, the minister said the committee is working to resolve the issue and the progress has been positive.

The committee was formed after the government failed to live up to its commitment on allowing trade unionism in the export processing zones from January 2004.

The US had agreed to extend the deadline for another two months time a government request, which had assured Washington that the committee would draw up a common formula to ensure the rights of the workers and a congenial atmosphere for the investors in the export processing zones (EPZ).

The World Bank sources also told the Daily Star that they had been working on the issue and made significant progress.

The issue of allowing trade union activities in the EPZs turned critical after the foreign investors threatened to pull out if trade unionism were allowed in their factories.

The foreigners, mainly from South Korea and Japan, have invested around $600 million in two prominent EPZs in Dhaka and Chittagong that employ around 1.30 lakh Bangladeshis. Four other new EPZs are eyeing millions in investment and a massive employment generation.