Addressing a Bangladeshi delegation recently, US Congresswoman Grace Meng reportedly said that the Generalized System of Preferences (GSP) facility needs to be restored for the economic development of Bangladesh, while also underlining that there was no political reason behind suspension of the trade facilities to it.
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This she said to the five-member Bangladeshi delegation, led by Bangladeshi American Democratic League President Khorshed Khandaker, accompanied by US Awami League President Siddiqur Rahman, acting General Secretary Abdus Samad Azad, Vice-President Abul Kashem and Executive Member Shahanara Rahman, who all met her recently to deliberate on the GSP issue.
The American Democratic League President said that the delegation submitted a memorandum to Meng, soliciting her help for revival of GSP facilities, adding further that the memorandum also noted that Bangladesh had followed all instructions the US had issued to secure safe workplaces.
Meng on her part assured the delegation of ‘doing her best’ for Bangladesh, Khandaker said.
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It may be mentioned here that GSP is a preferential tariff system that provides for a formal system of exemption from the more general rules of the World Trade Organization (WTO). Specifically, it is a system of exemption from the most-favoured nation principle (MFN) that obliges WTO member countries to treat the imports of all other WTO member countries no worse than they treat the imports of their ‘most favoured’ trading partner. In essence, the MFN requires WTO member countries to treat imports coming from all other WTO member countries equally, that is, by imposing equal tariffs on them, etc.
However, USA suspended the trade privileges enjoyed by Bangladesh under GSP in 2013, following the fire at Tazreen Fashions and collapse of the Rana Plaza building. Further, it also set a total of 18 conditions, including improvement in the working conditions and safety of workers later on, for Bangladesh to get back the benefit.