USITC Releases Report on Apparel Export Competitiveness of Certain Suppliers to The United States

On September 30, 2024, the U.S. International Trade Commission released Apparel: Export Competitiveness of Certain Foreign Suppliers to the United States.

Apparel: Export Competitiveness of Certain Foreign Suppliers to the United States

On January 19, 2024, the International Trade Commission published in the Federal Register (89 FR 3692) Apparel: Export Competitiveness of Certain Foreign Suppliers to the United States.

Following receipt on December 20, 2023, of a request from the U.S. Trade Representative (the Trade Representative), under section 332(g) of the Tariff Act of 1930, the U.S. International Trade Commission (Commission) instituted Investigation No. 332–602, Apparel: Export Competitiveness of Certain Foreign Suppliers to the United States. The Trade Representative requested that the Commission conduct an investigation and prepare a report that examines the export competitiveness of the apparel industries in Bangladesh, Cambodia, India, Indonesia, and Pakistan, all of which are current leading suppliers to the U.S. market.

AAFA Formalizes Partnership with Bangladesh Garment Industry

On March 10, 2022, the American Apparel & Footwear Association (AAFA) signed a Memorandum of Understanding with The Bangladesh Garment Manufacturers & Exporters Association (BGMEA). AAFA President and CEO Steve Lamar and BGMEA President Faruque Hassan shared the pen in Washington, D.C. during the annual AAFA Executive Summit which convenes the AAFA Board of Directors and industry leadership.

The two groups will explore opportunities and work together to increase trade access for Bangladesh to the U.S. market, improve purchasing practices, build on the great work already done by the Bangladeshi industry on sustainability, and expand the strong partnership between the U.S. and Bangladeshi industry.

“Together, we aim to develop joint programs that train workers and mid- and top- management, explore new CSR initiatives to support the well-being of the workers and communities, and more,” said BGMEA President Faruque Hassan.

“AAFA’s comprehensive work ensures the continued success and growth of the global apparel and footwear industry, its suppliers, and its customers. With this in mind, agreements with strategic partners around the world help reduce trade barriers, encourage sharing of ESG best practices, and promote innovation on behalf of our members,” said AAFA President and CEO Steve Lamar. “Today’s collaboration marks increased capacity building to support joint practices and trainings to advance supply chain sustainability, expand trade opportunities, improve the buyer-supplier partnership.”

About BGMEA: The Bangladesh Garments Manufacturers and Exporters Association (BGMEA), represents the Bangladesh garments industry encompassing the second largest exporting country in the world.

U.S. Government Statement on the Anniversary of Rana Plaza Building Collapse in Bangladesh

The text of the following statement was released April 23, 2014, by the Department of State, the Office of the U.S. Trade Representative, the U.S. Agency for International Development, and the Department of Labor.

Begin Text:

Today marks the one-year anniversary of the building collapse at Rana Plaza in Dhaka, Bangladesh that claimed over 1,100 lives and injured thousands more – the worst industrial disaster in the history of the garment industry. Like the Triangle Shirtwaist disaster in the United States over one hundred years ago, Rana Plaza, and the Tazreen factory fire that preceded it in November 2012, have become potent symbols of the significant and unnecessary risks that many workers are still forced to take in order to earn a living and support their families. As we mourn the victims, we are again called to action so that tragedies like Rana Plaza and Tazreen never happen again.

All stakeholders in Bangladesh – including the government, employers, and buyers of Bangladeshi products – bear a responsibility for ensuring safe working conditions and that workers have a voice to protect their interests. To that end, we are working with all stakeholders to implement the Action Plan we laid out after President Obama suspended Bangladesh’s benefits under the Generalized System of Preferences program last June. We are also closely coordinating with the European Union and the International Labor Organization (ILO), key partners in a July 2013 Sustainability Compact on worker rights and factory safety in Bangladesh.

In the last year, the government of Bangladesh has made progress in some important respects. For example, Bangladesh has allowed over 140 unions to register, permitted re-registration of a leading labor rights non-governmental organization that had been stripped of its registration, agreed to an ambitious plan for safety inspections and factory-level monitoring and remediation across the garment sector in collaboration with the ILO, begun the hiring of new labor inspectors, and conducted preliminary safety inspections.

But there is much more work still to be done. There continue to be concerns about basic worker rights protections under both Bangladesh’s labor law and its special Export Processing Zone law. The Bangladesh government’s hiring of inspectors is lagging, and the results of inspections need to be made publicly available on an easily accessible database. The government of Bangladesh must also do more to ensure protection when workers face intimidation and reprisals for trying to organize. Addressing these issues would help workers secure safer working conditions and better wages and enable Bangladesh to realize its full economic potential.

USTR Annouces Next Step to Address Worker Safety in Bangladesh

Friday the Office of the United States Trade Representative ("USTR") outlined next steps in efforts to address in a meaningful way worker safety problems in Bangladesh – the severity of which were exemplified in the tragedies of the November 2012 Tazreen Fashions factory fire and the April 2013 Rana Plaza building collapse – and, more broadly, the ability of Bangladeshi workers to exercise their full range of labor rights. The full text of the USTR statement is available on the USTR website here.

President Obama Suspends GSP Benefits for Bangladesh

President Barack Obama has suspended the designation of Bangladesh as a beneficiary developing country under the Generalize System of Preferences ("GSP"). The suspension will take effect in 60 days.

BACKGROUND

1. Section 502(b)(2)(G) of the Trade Act of 1974, as amended (the "1974 Act") (19 U.S.C. 2462(b)(2)(G)), provides that the President shall not designate any country a beneficiary developing country under the Generalized System of Preferences ("GSP") if such country has not taken or is not taking steps to afford internationally recognized worker rights to workers in the country (including any designated zone in that country). Section 502(d)(2) of the 1974 Act (19 U.S.C. 2462(d)(2)) provides that, after complying with the requirements of section 502(f)(2) of the 1974 Act (19 U.S.C. 2462(f)(2)), the President shall withdraw or suspend the designation of any country as a beneficiary developing country if, after such designation, the President determines that as the result of changed circumstances such country would be barred from designation as a beneficiary developing country under section 502(b)(2) of the 1974 Act. Section 502(f)(2) of the 1974 Act requires the President to notify the Congress and the country concerned at least 60 days before terminating its designation as a beneficiary developing country for purposes of the GSP.