Suspension of GSP: Image Crisis for Bangladesh

Abstract

The most troubled sector of recent times is Ready-made Garments (RMG) sector of Bangladesh which is the backbone of our economy. This labor intensive industry has accommodated 4.5 million workers 80% of whom are women in the last fiscal year. So there are about 5,000 garments factories scattered across the country. 78% of our foreign earnings come from this sector. This sector keeps our economy moving, but the industry has been facing numerous problems. Poor working conditions, bad industrial relations, low wage, the arrogant and ruthless attitude of the owners or management and lack of solid and positive initiative on behalf of successive governments has made this sector questionable in the world market. It has lost GSP (Generalized System of Preference) advantage in the U.S market which has created an image crisis for the industry. This is fear of loosing GSP advantage in the EU market as well. To save the employment generation and one of the largest foreign currency earning sectors, BGMEA, BKMEA and Government should adopt an integrated approach on the one hand and boost up the image of this industry on the other. 

Key words: Ready Made Garment, GSP, Suspension of GSP,