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1. Why US government has stopped GSP facilities for Bangladesh?

- President Barack Obama has banned Bangladesh's long-standing preferential trade status, or GSP, in a mostly
symbolic response to deadly working conditions in the garment sector, which have claimed over 1,200 deaths in
the last year.

Bangladesh's trade privileges were terminated Monday by the US after a six-year examination revealed "severe
breaches" in safety and labor regulations.
Under the Generalised System of Preferences, the decision would reintroduce duties on certain of Bangladesh's
exports to US markets. The plan, however, does not apply to Bangladesh's most important export: garments.
The suspension highlights the government's lack of progress in improving manufacturing conditions.
In a statement to Congress, US President Barack Obama said, "I have concluded that it is appropriate to suspend
Bangladesh's designation as a beneficiary developing country under the GSP program because it is not taking
efforts to ensure globally recognized worker rights."

Bangladesh has been excluded from the United States' generalized preference system (GSP).The US has
extended trade privileges to 122 countries across the world, but Bangladesh has been left off the list.

According to a notification released by US Customs and Border Protection, US President Barack Obama signed
the Trade Preferences Extension Act on June 29, extending the generalised system of preferences (GSP)
through 2017.

Trade advantages will be retroactive to July 31, 2013, under the new GSP scheme.Bangladesh was suspended
from the GSP in June 2013 because it failed to fulfill legislative qualifying standards pertaining to labor rights.
Following two industrial tragedies-
The Tazreen Fashions fire and the collapse of the Rana Plaza building – the US banned GSP for Bangladesh
in June 2013, citing significant labor rights and occupational safety violations.While Bangladesh made progress
in the previous year to address fire and building safety hazards in the garment sector, an interagency assessment
coordinated by the United States Trade Representative (USTR) found that further progress is needed.

However, the USTR stated that further effort is required to restore the generalized system of preferences.

GSP is a trade arrangement through which the United States enables the import of over 5,000 commodities from
122 Least Developed and Developing Countries (LDCs) with reduced or no tariffs. In that evaluation, USTR
Director Michael Froman stated that there is still more work to be done to address concerns regarding factory
safety in the clothing industry, expanding on the partnership between the government of Bangladesh, private
sector players, and the International Labour Organization.
Froman also encouraged the Bangladesh government to step up its efforts to protect workers' rights, as well as
take steps to address ongoing complaints of harassment and violence against labor activists seeking to exercise
their rights.

In 2012, the overall value of US GSP imports from Bangladesh was $34.7 million, with cigarettes, sports
equipment, porcelain china, and plastic items among the top GSP imports from Bangladesh.

According to the American Apparel and Footwear Association, US firms are losing $2 million per day since the
plan was suspended for all nations.

According to the January USTR evaluation, there has been minimal movement in pushing labor law reforms,
including adjustments to guarantee that employees in export processing zones have the same rights and
protections as those in the rest of the nation.

Over 2,000 initial factory safety inspections were accomplished in the garment industry last year under the
general supervision of the Bangladesh government, the majority by teams organized by private sector
initiatives, according to the report.

According to the American Apparel and Footwear Association, since the plan was delayed for all countries, US
businesses have lost $2 million per day.

According to the USTR's January assessment, there has been no progress in pressing labor law improvements,
such as changes to ensure that employees in export processing zones have the same rights and protections as
those in the rest of the country.

According to the study, the Bangladesh government conducted over 2,000 first factory safety inspections in the
garment industry last year, the bulk of which were conducted by teams created by private sector initiatives.

According to the New York Times, labor organizations and Democrats on Capitol Hill have been pressuring the
US administration to terminate Bangladesh's trade rights. At the same time, some State Department officials
argued that withdrawing trade rights would harm diplomatic ties and destabilize an already impoverished
country's economy.

The United States, which buys approximately a quarter of Bangladesh's $18 billion in annual garment exports,
allows Bangladesh to export nearly 5,000 goods duty-free.
The US investigation began in 2007, when the AFL-CIO, the country's largest labor organization, submitted a
petition requesting for Bangladesh's trade privileges to be rescinded.

In response to the two disasters, European shops have signed an agreement to promote worker safety in
Bangladesh, but many US retailers have balked at accord, saying it gives unions too much control over ensuring
workplace safety.