The US should keep the GSP privilege of Bangladesh suspended until such time that Bangladesh comply with all conditions and new conditions mandated by Trump Administration. Myanmar should be given GSP privilege as long Su Ki remains de facto Leader of Myanmar.Bangladesh again denied GSP
Refayet Ullah Mirdha
Bangladesh's trade privilege in US markets has been again denied as President Donald Trump's administration goes on to enforce the trade preference programme's eligibility this week.
The Generalised System of Preferences (GSP) facility for Bangladesh was suspended in June 2013 after the Rana Plaza building collapse in April, the reasons cited being poor labour rights and unsafe working conditions in factories.
The then Obama administration also gave 16 conditions to be fulfilled for regaining the trade privilege. Bangladesh fulfilled the conditions and twice submitted reports to United States Trade Representative (USTR).
But the US has not been reinstating the trade privilege, now citing poor labour rights.
Moreover, in this year's review, Bangladesh could not come out from the list of countries suspended from GSP benefits although some active decisions were taken in the trade preference enforcement programme in 2017.
For example, Argentina was being reinstated to the GSP programme, effective from January 1, 2018, following resolution of certain arbitral disputes with US companies.
The US also restored the trade benefits to The Gambia and Swaziland under the African Growth and Opportunity Act.
“President Trump has sent a clear message that the United States will vigorously enforce eligibility criteria for preferential access to the US market,” said Ambassador Robert E Lighthizer, the USTR and chief trade negotiator for the Trump administration, in a statement on December 22.
“Beneficiary countries choose to either work with USTR to meet trade preference eligibility criteria or face enforcement actions. The administration is committed to ensuring that other countries keep their end of the bargain in our trade relationships,” according to the statement.
“We do not expect reinstatement of GSP to the US market anymore as the American government has been giving newer conditions to be fulfilled by Bangladesh,” said a senior official of the commerce ministry asking not to be named.
Even though the 16 conditions had been fulfilled, the US is now demanding changing the labour law for the factories, housed in the export processing zones (EPZ), which is contradictory to the main guidelines of the EPZ law, the official said.
Moreover, Bangladesh has already submitted the draft copy of the proposed amendment of the labour law to International Labour Organization for its expert committee's opinion.
Workplace safety in Bangladesh has already been applauded all over the world after the inspection and remediation of the garment factories by the Accord and Alliance through fixing the loopholes in structural, fire and electrical aspects, the official said.
The US is the single largest export destination for Bangladesh. As a least developed country, 97 percent of goods originating from Bangladesh enjoy duty-free benefits on export to US markets as per the decision of the Hong Kong Ministerial Meeting of World Trade Organization in 2005.
However, the country's main export item, garments, has not been included in this “97 percent package” although garment items comprise 95 percent of Bangladeshi exports to the US in a year.
As a result, Bangladeshi exporters face 15.62 percent duty on export of apparel items to the US markets although some competing countries like China, Vietnam, Pakistan and India face much less.
The US government does not allow GSP on apparel items from any country and the duty differs from one country to anohter.
In 2012, the total value of imports from Bangladesh to US under GSP was $34.7 million. The top imports under GSP from Bangladesh included tobacco, sports equipment, porcelain china and plastic products.
The GSP programme saved American companies nearly $730 million in import duties in 2016 and is on track to save even more in 2017, according to American Apparel Footwear Association (AAFA).
When GSP expired from August 2013 to July 2015, US companies paid $1.3 billion extra in taxes while awaiting congressional reauthorisation, AAFA said.
https://www.thedailystar.net/business/bangladesh-again-denied-gsp-1511323
That's some quality spanking..
What is Bangladesh’s take on China’s BRI?
Ranjan Basu, Delhi
- Published at 12:41 pm November 29th, 2018
National flags of Bangladesh and China Bigstock
Analysts think Bangladesh will maintain a balance in the implementation of the initiative
China is moving to implement a mega project titled the “Belt and Road Initiative” (BRI) at a cost of around $1 trillion.
Dubbed as the Silk Road of the 21st century, the ambitious project involves the construction of roads and shipping lanes though countries in Europe, Asia and Africa.
South Asian countries need to play a great role in the implementation of the project, but India, Pakistan, Sri Lanka and Nepal have yet to decide on their contributions.
Analysts think Bangladesh will try to maintain a balance in the implementation of BRI.
In the third week of November, the “Nepal-China Friendship Forum” organized an international seminar in Kathmandu in which participants discussed South Asia’s gains and losses from BRI.
Bangladesh representatives who attended the seminar hinted at Dhaka’s take on the initiative.
India is opposing the project, as one of its crucial routes will go through Pakistan-governed Kashmir that India claims as its own land. It is not possible for India to accept BRI in terms of this sovereignty issue.
However, India has no issue regarding the implementation of the proposed Bangladesh-China-India-Myanmar (BCIM) corridor at its eastern border.
“Bangladesh prefers to maintain strategic balance with India and China. The government has long been maintaining a balance with these two giant powers. I believe it will do the same in BRI as well,” said Dhaka University’s economic department Prof Selim Raihan, who attended the seminar.
The countries to be engaged with BRI are also concerned over financial issues.
“Initially other countries thought China would offer them a free lunch, which means Beijing would provide all expenses and [the other countries] would get solid infrastructure and a commercial corridor. But now they have realized that China is not doing it for free; it will give them loans on easy terms,” said Prof Prabir Dey of Delhi-based think tank Research and Information System for Developing Countries.
Prof Dey, who has been working on connectivity between South Asia and China and ASEAN countries, was one of the panelists in the seminar.
During his Bangladesh visit in 2016, Chinese President Xi Jinping wrote a cheque for $30 billion. However, it became gradually clear that it was not a grant, but rather a loan.
Prof Raihan said: “Bangladeshis have sensitivity for India, not for China. But the Sheikh Hasina-led government has not been more inclined to either of the powers.”
For example, he said in the construction of Payra port both Indian and Chinese companies are working together under an umbrella project, which one cannot think of elsewhere.
The Dhaka University professor also cited some more examples.
“Bangladesh purchased submarines for the navy from China and signed defence deals with India. China was not given allocation for the deep sea port, but a Chinese consortium was awarded 25% share of the Dhaka Stock Exchange.
“So I believe Bangladesh will find a midway path regarding BRI,” Prof Raihansaid.
Asian Tiger Capital’s Group Chairman Ifty Islam also echoed Prof Raihan.
“China is going to emerge as the world’s greatest economy by 2050. India might also secure a top position. So, Bangladesh cannot avoid any of its neighbours,” he said.
Have you missed Gaocola this morning? When did Bangladeshis talked about competing with India? Yes, Bangladesh is overall a better country to live compared to India, but that does not mean we are competing with India. Size are different. So, one to one competition is not possible. And no one in Bangladesh claim that either. It is your big misconception and lie to claim that about Bangladeshis.
Elevated metrorail which is known as MRT-6 is already under construction in Dhaka and will be operational by 2020 and 2021. This news is about subway, construction of which will be started in the next year.
New Recruit
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Gud luck..
