The European Union (EU) asked Bangladesh to implement all of the 32 conventions to continue duty-free market access under the Generalized System of Preferences (GSP) policy.
The Head of Delegation of EU in Dhaka Charles Whiteley made the comments on Tuesday at a round table discussion meeting in the capital and said that Bangladesh’s progress over the implementation of 32 conventions is not satisfactory, read a press release.
He asked buyers to pay fair prices to the suppliers and said that the audit issues would be considered under the due diligence law.
International Business Forum of Bangladesh (IBFB) organised the programme at their head office in the capital, titled ‘Due Diligence Laws’, and EU Deputy Chief to Dhaka Bernd Spanier presented the key note.
IBFB President and Managing Director and CEO of Energypac Power Generation Humayun Rashid preside over the programme.
Meanwhile, apparel exporters blamed that the buyers are not following ethical buying practice, and said that they [brands and buyers] are ‘blood sucker’.
Currently Bangladesh is enjoying the GSP facility under the Everything but Arms (EBA) policy as a Least Development Country (LDC), and sought GSP+ as the country will graduate from 2026.
In November last year, an EU delegation came to Bangladesh to review the conventions progress, and its head the GSP EU’s external action service director Paola Pampaloni told The Business Post after meeting with BGMEA that they find delay to implementation of the commitments.
During this time, BGMEA President Faruque Hassan said, “The EU team provided a roadmap and recommendations on labour law amendments, focusing on issues such as child labour, the EPZ labour act, trade union formation, and general labour rights.
“They [the delegation] threatened that if Bangladesh will not improve in these areas, the EU likely to be ban GSP facility for the country.”
In the key note paper, Spanier said that due diligence is a set of binding rules to hold companies accountable for harm done to human rights and the environment in their supply chains.
He said, victims can claim reparations from a company in a European court if they can show that a damage they suffered through a violation of human rights or environmental standards was caused by the companies’ failure to follow proper due diligence procedures.
“EU’s national supervisory bodies will be able to sanction companies if they find that the companies do not properly implement their due diligence procedures.
“The sanctions can go as high as 5 per cent of a company’s global turnover, which can be especially painful for large global companies,” the key note paper read.
During the programme, Whiteley said “Due diligence is not in the interest of buyers or sellers. It is the interest of the world to tackle climate change, child labour, slavery, labour exploitation, pollution, deforestation, excessive water consumption, damage to ecosystem etc.
“Accession to GSP plus, there are 32 conventions, environmental, labour, human rights and so on, that Bangladesh has to implement, not just ratify. And we have to pay tribute to Bangladesh that it's already ratified these conventions. And now the hard work of further implementation must go on.”
The EU Dhaka office chief further said, “I will say to buyers, pay a fair price and treat your supply as well, because it's in your own interest. This legislation isn't supposed to impose things. It's supposed to actually be a very positive contribution to how the whole world treats business and needs to combat climate change and things like child labour.”
In the discussion, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan said, “The goal we want to achieve through implementing due diligence law is universal and desired by all.
“So the legislation should be something that is truly global and accepted in all places which is not the case we are witnessing.”
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Executive President Mohammad Hatem requested the EU delegation to make a unified audit system.
“There are too many audit systems which are unnecessary and take a huge time. There should be a common audit system and we want EU’s support in that case.”
He further said, “Brands and buyers are blood sucker, and they are not doing ethical buying practice."
IBFB Vice President and Legal Economist MS Siddiqui focused on ethical, proper, fair product pricing in terms of compliance.
“It is a bilateral thing and you should incorporate a strict law for pricing because the same t-shirt, we got $1 but the buyers sell that for $25.”
