Bangladesh may not regain US GSP soon

Bangladesh is unlikely to regain benefits offered under the generalised system of preferences (GSP) from the United States if the programme is revived in the near future because of several issues related to labour rights in the country, Finance Adviser Salehuddin Ahmed said yesterday.

Ahmed, who is currently in the US to take part in the annual meetings between the World Bank and the International Monetary Fund, said he raised the topic during a meeting with the US Department of the Treasury on the sidelines of the event.

"If the GSP benefits are reinstated, we may not be able to avail them. They have some labour-related concerns. The US Congress is also involved in decisions regarding GSP facilities," the finance adviser said while speaking to journalists after the meeting.

However, he did elaborate on the US Congress' involvement in the process.

Introduced in 1976, the GSP was a trade scheme that allowed least developed and developing countries to export goods to the US at a low duty or none at all in some cases.

If the GSP benefits are reinstated, we may not be able to avail them. They have some labour-related concerns.

— Salehuddin Ahmed Finance adviser

However, such benefits were suspended for Bangladesh in June 2013 over serious shortcomings in labour rights and workplace safety standards after twin industrial disasters: the Tazreen Fashions fire and Rana Plaza building collapse.

The scheme was then cancelled for all beneficiary countries in December 2020.

Bangladesh has tried several times to regain duty-free access to the US market to boost exports.

The country has fulfilled 16 conditions for reinstatement of GSP benefits and submitted progress reports to the United States Trade Representative twice.

However, the US has repeatedly said that Bangladesh needs to do more.

Ahmed also shared that the World Bank would provide $250 million in grants to repair the damage caused by recent floods in Bangladesh.

He shared the information after meetings with members of different multinational development partners, including World Bank officials.