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U.S. to Suspend Trade Privileges With Bangladesh U.S. to Suspend Trade Privileges With Bangladesh
(31 minutes later)
The Obama administration on Thursday will suspend trade privileges for Bangladesh over concerns about safety problems and labor rights violations in that country’s garment industry, according to Administration and Congressional officials.The Obama administration on Thursday will suspend trade privileges for Bangladesh over concerns about safety problems and labor rights violations in that country’s garment industry, according to Administration and Congressional officials.
The administration has come under intense pressure to suspend trade privileges with Bangladesh after a factory building there collapsed in April, killing 1,129 workers and after a factory fire there killed 112 workers last November.The administration has come under intense pressure to suspend trade privileges with Bangladesh after a factory building there collapsed in April, killing 1,129 workers and after a factory fire there killed 112 workers last November.
Officials with the United States Trade Representative’s office declined to comment. Administration and Congressional officials said the official announcement would come later on ThursdayOfficials with the United States Trade Representative’s office declined to comment. Administration and Congressional officials said the official announcement would come later on Thursday
Labor unions and Democrats on Capitol Hill have been pressing the Obama administration to take this step. Under the Generalized System of Preferences, Bangladesh is allowed to export nearly 5,000 products duty-free to the United States, which purchases about 25 percent of the country’s $18 billion in annual apparel exports.Labor unions and Democrats on Capitol Hill have been pressing the Obama administration to take this step. Under the Generalized System of Preferences, Bangladesh is allowed to export nearly 5,000 products duty-free to the United States, which purchases about 25 percent of the country’s $18 billion in annual apparel exports.
Bangladesh is among more than 125 countries that receives breaks on United States tariffs under the Generalized System of Preferences, a World Trade Organization program that is intended to promote economic growth around the globeBangladesh is among more than 125 countries that receives breaks on United States tariffs under the Generalized System of Preferences, a World Trade Organization program that is intended to promote economic growth around the globe
In recent weeks, officials in the Labor Department have called for revoking Bangladesh’s special trade status, saying the United States needs to take strong action. Labor officials have asserted that the garment industry has been dragging its feet in improving safety and ending violations of workers’ right to form labor unions. At the same time, some State Department officials have pushed against suspending the trade privileges, saying it would damage diplomatic relations and undermine the economy or an already poor country.In recent weeks, officials in the Labor Department have called for revoking Bangladesh’s special trade status, saying the United States needs to take strong action. Labor officials have asserted that the garment industry has been dragging its feet in improving safety and ending violations of workers’ right to form labor unions. At the same time, some State Department officials have pushed against suspending the trade privileges, saying it would damage diplomatic relations and undermine the economy or an already poor country.
At a hearing in March held by the trade representative’s office, a top official in Bangladesh’s Commerce Ministry said, “Compliance with rights, including labor rights, will necessarily be gradual” in poor countries like Bangladesh.At a hearing in March held by the trade representative’s office, a top official in Bangladesh’s Commerce Ministry said, “Compliance with rights, including labor rights, will necessarily be gradual” in poor countries like Bangladesh.
The Administration’s move is in response to an official complaint that the A.F.L.-C.I.O. filed in 2007. The labor federation was upset about factory fires and a 2005 factory collapse in Bangladesh, as well as the extensive efforts by that country’s garment manufacturers to suppress labor unions. The administration’s move is in response to an official complaint that the A.F.L.-C.I.O. filed in 2007. The labor federation was upset about factory fires and a 2005 factory collapse in Bangladesh, as well as the extensive efforts by that country’s garment manufacturers to suppress labor unions.
Administration officials took that complaint with new seriousness after the Tazreen factory fire November and after the Rana Plaza factory building collapsed two months ago in what was the most deadly accident in the history of the world’s apparel industry.Administration officials took that complaint with new seriousness after the Tazreen factory fire November and after the Rana Plaza factory building collapsed two months ago in what was the most deadly accident in the history of the world’s apparel industry.
One labor rights advocate familiar with the decision said it called for suspension with a road map to restoring trade privileges.One labor rights advocate familiar with the decision said it called for suspension with a road map to restoring trade privileges.