EU for strict enforcement of GSP regulations

The European Union (EU) appears to be stricter with the enforcement of Generalised System of Preferences, or GSP regulations amid rising exports from the beneficiary countries, including Bangladesh.

The 28-member regional bloc said its new leadership will take an interest in the effectiveness of core United Nations' (UN) and International Labour Organisation's (ILO) conventions on human rights and labour rights in return for the EU's generous tariff preferences.

" ... the enhanced engagement with EBA (Everything But Arms) beneficiary countries will be under increased scrutiny this year," the Commission's trade director Ewa Synowiec wrote in a recent letter to commerce and labour secretaries of Bangladesh.

The EU is the single largest trading partner of Bangladesh. In 2018, Bangladesh exported goods worth 18 billion euro to the regional bloc.

Ms Synowiec also wrote that her office is preparing a biennial GSP report for the EU parliament. A mission of the EU will visit to discuss the latest labour law reforms in Bangladesh and collect the necessary information on developments and progresses made on the remaining issues.

She also wrote Bangladesh's exports under the EBA to the EU countries saw over 12 per cent growth in 2017.

"The impact of the enhanced engagement process will thus be a major element of the next biennial report," Ms Synowiec noted.

She requested the two top Bangladeshi officials to submit in writing the latest developments about the labour rights situation in the country.

The EU trade boss wanted to know about the full alignment of the country's labour law, the statute applicable to the export processing zones and the labour rules with the ILO Conventions 87 and 98.

She also wanted to know about the matter of minimum membership requirements and coverage of all sectors and workers, the steps taken to effectively address anti-union-discrimination and to ensure simple, objective and transparent process of trade union registration.

Ms Synowiec also sought to know about the measures taken to effectively eliminate forced and child labour, including proper investigations, prosecutions and a sufficient capacity of the labour directorate in terms of number and ability.

A senior official at the ministry of commerce told the FE Bangladesh is graduating to the developing country status and risks losing various trade benefits.

He said Bangladesh is now expecting GSP Plus tariff preference from the EU after graduation.

"But we have to properly comply with the EU's labour rights requirements to avail the preference," he said.

He said factory owners need to implement the core ILO conventions in their own interest.

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