WASHINGTON: President Barack Obama has cut off long-time trade benefits for Bangladesh in a mostly symbolic response to conditions in the country’s garment industry that have cost more than 1,200 lives in the past year.
The move does not directly affect multi-billion-dollar clothing exports, since garments are not eligible for duty cuts, but could prompt the EU into similar action, which would have a bigger impact as Dhaka’s textiles exports to the EU are duty-free.
“I have determined that it is appropriate to suspend Bangladesh... because it is not taking steps to afford internationally recognised rights to workers,” Obama said.
Dhaka said it did not expect the move to have an impact on business but feared it would hurt US investment. “We are desperately trying to upgrade the situation of our garment factories and we expect assistance, not punitive action,” said H T Imam, Adviser to Premier Sheikh Hasina.
Richard Trumka, President of the AFL-CIO labour federation, said the decision sent a message to countries that receive duty-free access to the US. Agencies
