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US vs Bangladesh / Sweatshop / Suspension of Preferential Trade Status and Reactions

The U.S. is planning to suspend its preferential trade treatment for Bangladesh, a largely symbolic move to punish the country for poor labor practices that attracted world-wide attention after a garment factory collapsed in April. The suspension, which will begin in about 60 days.

The U.S. suspended its preferential trade treatment for Bangladesh on Thursday, a largely symbolic move to punish the country for poor labor practices that attracted world-wide attention after a garment factory collapsed in April, killing more than 1,100 workers.

President Barack Obama carved the South Asian country from a trade framework that eliminates certain U.S. import duties for select developing economies.

The suspension is expected to raise U.S. import duties on some Bangladeshi goods, including golf equipment and ceramics, but would have little effect on the garment industry, which dominates the country’s international trade. The decision marks a victory for U.S. labor leaders, who have criticized the labor laws and worker safety in Bangladesh. AFL-CIO President Richard Trumka said the suspension “sends an important message to our trading partners.”

Chosen excerpts by Job Market Monitor

WSJ

via U.S. Suspends Bangladesh’s Preferential Trade Status – Wall Street Journal – WSJ.com.

Bangladesh has called a decision by the United States to suspend the country’s trade privileges, due to concerns about dangerous working conditions and labor rights, a harsh measure.

Bangladesh’s foreign ministry has expressed hope that the U.S. will soon restore the country’s trade preferences and has urged Western buyers to continue their business with their “long trusted partners in the country.”

The garment industry employs nearly four million workers and is the main driver of Bangladesh’s economy. However, there are fears that the country’s failure to address global concerns on workers issues could drive buyers to other Asian countries such as Cambodia and Indonesia.

Chosen excerpts by Job Market Monitor

Capture d’écran 2013-06-28 à 09.53.17

via Bangladesh Criticizes US Decision to Suspend Trade Privileges.

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3 thoughts on “US vs Bangladesh / Sweatshop / Suspension of Preferential Trade Status and Reactions

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  1. Pingback: Sweatshops / Wrong unless Products Are Cute research finds | Job Market Monitor - June 29, 2013

  2. Pingback: Bangladesh / 50,000 garment workers strike over ‘inhuman’ wages | Job Market Monitor - September 23, 2013

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