Bangladesh getting EU GSP+ benefits linked to labour reforms: Envoy

Fibre2Fashion: The European Parliament and the European Commission will explore whether Bangladesh’s labour laws conform to international standards to be eligible for preferential trade benefits under the Generalised Scheme of Preferences (GSP) Plus, European Union (EU) ambassador to Bangladesh Charles Whiteley said recently.

“We are closely following the ongoing amendment of Bangladesh labour act. We hope that the amendment will be done with full transparency and in consultation with tripartite stakeholders and with technical assistance from ILO,” Whiteley was quoted as saying by domestic media reports.

He was addressing a seminar on ‘Unlocking Trade and Investment for European Companies in Bangladesh’, jointly organised by the Dhaka Chamber of Commerce and Industry and the EU.

The EU will continue to offer Bangladesh its trade facilities meant for least developed countries (LDC) up to 2029 after the country graduates from the LDC status in 2026.

Beyond that, Bangladesh has requested the EU to grant it GSP Plus benefits, a special incentive for developing countries to pursue sustainable development and good governance.

Though over $5 billion was scheduled to come from the EU to Bangladesh in the form of foreign direct investment over the past eight years, only $2 billion could finally come, Whiteley said.

Issues like carbon emission and renewable energy will be major factors in garments sourcing after 2030, said Ziaur Rahman, regional country manager of H&M.

Bangladesh’s exports to the EU, 93 per cent of which was garments, stood at $25.23 billion in fiscal 2022-23.