President Barack Obama on June 27, 2013 announced suspension of Generalized System of Preferences, GSP, with Bangladesh for not adhering to the acceptable standards related to labor rights and workplace safety. Under the GSP, more than 5,000 Bangladeshi products are being sold in the US duty-free. However, the list doesn't include the all-important garment sector that brings majority share of $5 billion in annual exports to the US, the largest trading partner with Bangladesh. The US action is to take effect in 60 days, and has come after less than desirable progress, according to the USTR Mike Froman, in mitigating the issues that have stalked the labor rights and workplace safety such as a November 2012 fire that has gutted a garment factory, killing more than 100, and April 24, 2013, collapse of Rana Plaza--that has housed numerous textile operations--killing 1,129 people. However, the real bite may come if the US action sways a similar European assessment as the Bangladeshi textile exports falls under the category of European GSP privilege.
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