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US downgrades Bangladesh trade ties US downgrades Bangladesh trade ties
(about 1 hour later)
The US has suspended trade privileges for Bangladesh until it improves workers' safety conditions in the clothing industry.The US has suspended trade privileges for Bangladesh until it improves workers' safety conditions in the clothing industry.
US Trade Representative Michael Froman pointed to several recent fatal accidents in its huge clothing sector.US Trade Representative Michael Froman pointed to several recent fatal accidents in its huge clothing sector.
These "had served to highlight some of the serious shortcomings in worker rights and workplace safety standards in Bangladesh", he said.These "had served to highlight some of the serious shortcomings in worker rights and workplace safety standards in Bangladesh", he said.
In April, a factory collapse near Dhaka killed more than 1,100 people. Two months ago, a factory collapse near Dhaka killed 1,129 people.
The collapse of the nine-storey complex, on 24 April, was Bangladesh's worst industrial disaster, and one in a series of accidents involving the world's second-biggest exporter of garments after China.
The high death toll focused global attention on low safety standards in garment factories and prompted the Bangladeshi government to launch inspections of all plants to try to reassure Western retailers that safety conditions had improved.
Twelve people have so far been arrested over what happened, including the building's owner.
But unions and experts say hundreds of factories are still operating in shoddy buildings, raising fears that another tragedy could occur at any time.
President Obama's order suspends Bangladesh's duty-free trade privileges under the terms of a US trade programme called the Generalized System of Preferences (GSP), designed to promote economic growth in developing countries.
"The US government has worked closely with the government of Bangladesh to encourage the reforms needed to meet basic standards," said US Trade Representative Michael Froman.
"Despite our... clear, repeated expressions of concern, the US government has not seen sufficient progress towards those reforms", he added.