U.S. President Barack Obama on Thursday cut long-term U.S. trade interests dangerous conditions in Bangladesh, the country's garment industry has spent more than 1,200 lives in the past year, mostly symbolic response.
Obama said in a statement: "I have decided to suspend Bangladesh, it is appropriate because it does not take steps to afford internationally recognized labor rights in the country's workers."
U.S. sanctions will not directly affect Bangladesh multi - billion dollar American country's garment exports, Rana Square garment factory building in April, killing 1,129 people, and in the Tazreen factory fire in November , after a crash killed 112, came under consideration.
However, it may affect the European Union to take similar action, which would have a greater impact on Bangladesh and apparel industry.
"This is not a decision to be taken lightly," the new U.S. Trade Representative Michael Froman told reporters a phone call. "Our goal, of course, not only to see Bangladesh to reinstate its eligibility (trade) benefits, but to see Bangladeshi workers safe, appropriate work environment."
Federation of Labour (AFL-CIO) President Richard Trumka said the decision to send an important message to get into the U.S. market duty-free GSP (GSP) scheme under the generalized system of the country.
"Trumka said," National tolerate dangerous - even deadly - working conditions and refused to basic workers rights, particularly the right to freedom of association, it may lose preferential access to the U.S. market.
It also makes U.S. company informed that they must take meaningful steps to improve conditions for factory workers in Bangladesh, the Senate Foreign Relations Committee Chairman Robert Menendez, New Jersey Democrat, said in a statement.
"No one will want to wear the clothes," manufactured in Bangladesh, if it is by the blood of the workers, which is the U.S. industry, the display in the global safety standards with their European counterparts leadership and work. "
U.S. heavy taxes, the Bangladesh Garment
Bangladesh suspended GSP scheme, the duties would increase U.S. exports to countries on an array of products to the United States, such as tobacco, sports equipment, Chinese porcelain, plastic products and a small amount of textile products.
But it does not directly affect Bangladesh's main export clothing, because the clothing is not eligible for duty reduction plan, which was founded in 1976 under the scheme, in order to help the world's poorest countries, economic development, reducing the cost of imports for U.S. companies .
In 2012, Bangladesh spared about $ 20,000 U.S. dollars worth of about $ 35 million worth of goods duty under the GSP, but it's about $ 7.32 million U.S. dollars to pay duties not covered by the program and apparel exports $ 490 million, said Ed GRESSER, a Industry analysts and GlobalWorks Foundation.
An EU decision to suspend trade benefits will have more impact because Bangladesh garment and textile exports duty-free treatment to obtain an average of about 15% compared U.S. duties.
EU officials raised the possibility of suspension in early May, hoping to urge Bangladesh to action.
Last year, the EU imported about 920 million euros (12.13 billion) of goods from Bangladesh, according to the EU's executive, the European Commission data.
These products accounted for nearly 93% of apparel and textile products, from towels and bedding.
EU and Bangladeshi officials will meet in July in Geneva for talks aimed at improving safety conditions in Bangladesh and safeguard the country's trade interests.
EU spokesman in Brussels, said the United States stressed that the actions of the EU's attention.
Petition in 2007
America's own review of the history can be traced back in 2007, when the AFL-CIO, the main U.S. labor groups, the first submitted a petition asking to be withdrawn, Bangladesh trade interests.
Despite the decision by the United States Trade relatively small size, Frohman said that Bangladesh officials remaining in the program a very high value.
Frohman said: "We will maintain a very direct and continuous contact with the Government of Bangladesh on workers' rights and safety of the workers, because they take additional action." "We will at the appropriate time to review its position."
European retailers have responded to the two tragedies have signed an agreement to promote the safety of workers in Bangladesh, but many U.S. retailers have rejected the accord, saying so much control over trade unions, to ensure workplace safety.
They have been trying, rather than Maine, former U.S. Senator George Mitchell, a Democrat, and Olympia Snowe, the Republican Party, an alternative plan to improve in Bangladesh garment factory fire and safety regulations.
Bipartisan Policy Center, a think-tank in Washington is coordinating efforts.
BPC President Jason grommet, said: "At this point only a few final details remain to be worked out and agreed upon, we remain on track to complete the process in early July," earlier this week in an e-mail.
 



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