from the Financial Times..
June 27, 2013
By Richard McGregor in Washington
The Obama administration has decided to suspend trade privileges for Bangladesh, citing its poor labour standards after a series of disasters in the country’s multibillion-dollar clothing export factories.
The decision, announced on Thursday, follows a petition from the AFL-CIO, the largest US union federation, complaining about labour and safety standards in Bangladesh.
The suspension of Bangladesh from the so-called generalised system of preferences, or GSP, a status that allows recipient countries to export some goods tariff-free, is largely symbolic, as it does not cover garments.
The US imported $4.9bn worth of goods from Bangladesh in 2012, nearly all of that apparel and related goods.
By contrast, the decision to suspend trade privileges affects only $34.7m worth of 2012 imports, including tobacco, sporting equipment, porcelain china, plastic products and a small amount of textile products.
“Most textile and apparel products are not eligible for duty-free treatment under the GSP programme,” said a US government official.
Link to the entire article: http://www.ft.com/intl/cms/s/0/09e130c4-df43-11e2-a9f4-00144feab7de.html#axzz2XXylgUmf