Saturday, May 04, 2024
Ambassador and Head of Delegation of the European Union (EU) to Bangladesh Charles Whiteley has assured that they will not introduce any policy that may deprive Bangladesh from duty-free market access in the region.
Whiteley made the remarks on Monday during his visit to The Business Post and Dainik Amader Shomoy offices in Dhaka, adding, “We need your [Bangladesh’s] good value garments. I believe we will have to run around naked if the Bangladesh market collapses.
“So we have a vested interest in solving the GSP issue, and I am confident we will resolve it.”
First Secretary (political) of the Delegation of the EU accompanied Whiteley in the programme.
The EU is Bangladesh’s single largest export region, occupying nearly 45 per cent of the country’s total exports. In FY23, Bangladesh earned $25.24 billion from the EU, while the country’s total exports stood at $55.56 billion, according to the Export Promotion Bureau (EPB).
EPB data shows that the EU mostly purchases clothes from Bangladesh, occupying over 50 per cent market share. During FY23, the country earned $23.52 billion from the EU market, while total RMG exports reached nearly $47 billion.
That is why the EU is the most vibrant export destination for Bangladesh, and the region is providing duty-free market access for Bangladesh under the Generalised Scheme of Preferences (GSP) policy.
Bangladesh is fully capable of cashing in on the GSP facility properly, according to the European Commission.
EBA will not extend after 2029
Bangladesh will graduate from the Least Developed Countries (LDCs) in 2026, and the EU will continue duty-free market access for the country till 2029 under the Everything But Arms (EBA) policy.
To continue duty-free market access after 2029, the country should be compliant to GSP+ policy.
But in the latest GSP draft 2024-34, made by the European Commission, Bangladesh’s key export items, apparel and home textile, will not be eligible for GSP+ facility due to the safeguard measures.
Amid the situation, the country and its businesses urged the EU to extend EBA for further three years.
Whiteley, however, said the EU has no plans to extend EBA to Bangladesh after 2029, adding, “Graduation is graduation. So I think the focus has to be very much on meeting the conditions for GSP.
“Bangladesh is well placed, as we know, having ratified the 27 [EU] conventions that may in time become 32 or 33.”
He continued, “It is a demanding list, and there's a lot of meat in that list of conventions. Bangladesh is right and prerogative to propose that they [EU] extend further to 2032 our duty free quarter free access.
“But, I would not want that to detract from all the sincere efforts to meet the conditions of GSP, because that is where our minds are focused as EU and we want to help Bangladesh reach that.”
Whiteley then said, “So it is not just a question of us saying, you have to do this. We have many programmes, including the decent work programme to support the fulfillment of social standards, labour standards and so on.
“So that is a partnership and that is where we are focusing for the time being.”
GSP+ issue will get resolved
As the EU will not increase EBA tenure after 2029, Bangladesh would have to meet GSP+ conditions to get duty-free market access after the period. But the new draft GSP policy is a key barrier for Bangladesh to get GSP+ due to EU safeguard measures.
Businesses and experts believe that without the GSP+ facility, Bangladesh will lose competitiveness in the EU market, while its competitors are enjoying duty-free facilities. The crisis also affects the EU consumers because Bangladeshi apparels will be costlier in the EU market.
Whiteley also believes that Bangladesh’s apparel sector is already engaged in competitive business practices in the EU region. “This [safeguard measure] is under discussion,” he added.
He said, “It is a very important topic. Vital because you do not expect a partner to make lots of efforts to meet the conditions of GSP+, only for us to then turn around and say, actually, we have a technical reason triggering the safeguards clause, and then you will not get the benefits.
“I cannot say much because at present this falls into the GSP regulation that's still being negotiated.”
The EU head of delegation said there is an acute awareness that they [EU] need to make sure if Bangladesh puts all the effort in to meet the conditions of GSP, and added “So I can't give any cast iron guarantees about how this is going to be solved, but I can give a cast iron guarantee that it's foremost in our policy makers’ minds in Brussels.
“They know this issue very well. Bangladesh has lobbied very effectively on the issue. It is not targeting Bangladesh.”
Labour rights is key focus
GSP is highly connected with the labour rights issues, and Bangladesh is committed to the EU to ensure the rights during the GSP agreement sign. The EU is regularly monitoring Bangladesh’s labour issues.
The 27-country earlier said Bangladesh’s existing labour act is not enough to ensure labour rights, and the country failed to meet commitment which in their National Action Plan.
Bangladesh, however, recently made a draft amendment of labour act, and a copy provided to the EU. The labour ministry claimed that they considered the EU’s recommendation during the making draft, and make easier formation of trade union.
Regarding this issue, Whiteley said, “The [Bangladesh] government has made amendments and now I understand they are looking again. But what is important is that they look again and they are doing that in partnership with the ILO, and [other] development partners.
“And of course there is the tripartite mechanism with trade unions and businesses. So, all voices need to be heard in this discussion.”
The EU ambassador said they are working with the government and they have a National Action Plan on the labour sector, which is a very comprehensive document that has all of these issues embedded in it, including time-bound goals on issues such as trade unions and so on.
“So I think we have a blueprint, and it is important that we try to keep to the timelines. On the labour sector, this was concluded as an agreement between the EU and Bangladesh. And that is where we focus our attention.
“We will be having our regular dialogue on labour sector issues in May with the government,” the EU head of delegation said, adding, “So that is an opportunity to take stock with the key ministries.”
