US may include Bangladesh apparel in the new GSP

There were some encouraging gestures by the US delegation at the recently concluded Seventh US-Bangladesh Trade Investment Cooperation Forum Agreement (Ticfa) meeting in which the US delegation agreed to include Bangladesh’s RMG items in the new GSP program.

Currently, the duty on Bangladesh RMG in the United States is 15 percent. However, the US delegation pointed out its reservations about various policies of Bangladesh. The issue of labour rights, a speedy trial for labour leader Shahidul Islam’s murder, and revising labour laws as per ILO recommendations was taken up by the US delegation. The US has also asked to simplify the existing provisions on the unionisation of factory workers.

Bangladesh seeks inclusion in US International Development Finance Corporation funds.

A good number of RMG items could be included in the new GSP program of the United States, officials of the Office of the United States Trade Representative (USTR) have informed the Bangladesh government, adding that if Bangladesh is included in the program and meets the specified conditions, it could export RMG products under duty-free facilities.

The US officials mentioned that Bangladesh’s copyright law conflicts with the Paris Convention and TRIPS.

Bangladesh said it fully abides by convention, however, if something like this is identified in the Copyright Act, it will be amended.

The US officials expressed interest in considering Bangladesh’s proposal to impose tariffs solely on the value added in Bangladesh for RMG products made from US cotton.

Bangladesh imports 14 percent of cotton from the US.

USTR officials said Bangladesh can get the new GSP benefits in two ways — firstly, by fulfilling the compliance criteria set for getting GSP benefits, and secondly, as per the decision of the Senate.

However, no information as to when the new GSP program would be implemented was shared at the Ticfa meeting.

The US delegates pointed out that due to geopolitical reasons, the country wants to reduce imports from China, he said, adding that even if imports from Vietnam and Cambodia increase, Chinese traders will benefit because Chinese investment in those two countries is very high.
For these reasons, both the United States and Bangladesh will benefit from GSP benefits for Bangladeshi-made garment products. The US is Bangladesh’s largest export market, with .

7 billion in total exports last fiscal year, including $8.5 billion in RMG, according to the Export Development Bureau.