EU GSP Plus depends on labour law reforms

European Parliament and European Commission, parts of European Union (EU), will see whether Bangladesh's labour laws conform to international standards to provide preferential trade benefits under a proposed GSP Plus, said EU Ambassador to Bangladesh Charles Whiteley yesterday.

Even though Bangladesh is scheduled to graduate to developing country status in 2026, the EU will continue to provide the country its trade facilities meant for least developed countries (LDC) up to 2029.

Afterwards Bangladesh wants to avail the Generalised Scheme of Preferences (GSP) Plus, a special incentive for developing countries to pursue sustainable development and good governance.

"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," said Whiteley.

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 (DCCI) and the EU at Renaissance Dhaka Gulshan Hotel.

The new areas of cooperation are ICT, infrastructure, aviation, renewable energy, agriculture and pharmaceuticals.

Over the past 8 years, over $5 billion was scheduled to come from the EU to Bangladesh in the form of foreign direct investment, according to Bangladesh Bank.

However, only $2 billion finally came about, which is far from ideal when compared with that going to other developing countries, such as $28 billion in Vietnam, 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 multinational clothing company H&M.

Bangladesh needs more EU investment for untapped potentials in leather goods, IT and bicycles, said Syed Nasim Manzur, managing director of Apex Footwear.

Bangladesh's exports to the EU, 93 percent of which was garments, stood at $25.23 billion in fiscal year 2022-23, said DCCI President Md Sameer Sattar.

Commerce Minister Tipu Munshi, Lokman Hossain Miah, executive chairman of Bangladesh Investment Development Authority, Jurate Merville, counsellor of the EU Delegation to Bangladesh, Morad Bourouffala, country representative of Airbus, Iqbal Chowdhury, CEO of Lafarge Holcim, Massih Niazi, CEO of Petromax LPG, Mushtaque Ahmed, vice president of the Bangladesh Bicycle and Parts Manufacturers and Exporters Association, Miran Ali, vice president of the BGMEA, and Russell T Ahmed, president of the BASIS, also spoke.