VZCZCXYZ0004
PP RUEHWEB

DE RUEHC #0011 0311801
ZNR UUUUU ZZH
P 311758Z JAN 08
FM SECSTATE WASHDC
TO AMEMBASSY DHAKA PRIORITY 0000

UNCLAS STATE 010011 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ELAB ECON ETRD PHUM PREL
SUBJECT: BANGLADESH GSP PETITION: REQUEST FOR INTERIM 
DEMARCHE 
 
 
THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED; PLEASE PROTECT 
ACCORDINGLY. 
 
¶1. (U) This is an action request, please see para 6. 
 
¶2. (SBU) SUMMARY:  The USTR-led Generalized System of 
Preferences (GSP) subcommittee accepted a 2007 American 
Federation of Labor and Congress of Industrial Organizations 
(AFL-CIO) GSP petition against the government of Bangladesh 
(GOB) for review.  Based on credible evidence related to 
several of the petition's allegations, Post is requested to 
meet with appropriate GOB officials to highlight the GSP 
petition and request action in the areas detailed following 
para 6, which provide some immediate actions that the GOB 
should take to show progress on addressing the concerns 
raised in the petition.  It also points out the broader 
systemic changes that ultimately must be undertaken to meet 
GSP eligibility criteria.  The GSP subcommittee will continue 
to monitor GOB actions closely and will provide a 
recommendation by June 30 on next steps.  END SUMMARY. 
 
¶3. (SBU) BACKGROUND:  After initial investigation, the GSP 
subcommittee is concerned that, as alleged in the 2007 
AFL-CIO petition, Bangladesh has failed to make adequate 
progress on commitments made during a previous GSP review 
cycle in 2004-2005.  The most recent petition from the 
AFL-CIO alleges the GOB has failed to realize associational 
rights in the export processing zones (EPZs), including 
implementation measures and basic protections from employer 
reprisal.  In addition, the petition alleges problems with 
standards in the ready made garment (RMG) sector; child labor 
in the shrimp and fish processing industry; and harassment 
and violence by government forces against trade unions, 
workers, and labor rights NGOs.  Host government should 
understand that under the GSP statute, failure to address 
issues of concern can lead to a loss of GSP benefits. 
Specifically, the GSP statute provides that a country may not 
be eligible for GSP benefits where the country has not or is 
not taking steps to afford internationally recognized worker 
rights to workers in the country. 
 
¶4. (SBU) The current petition repeats ongoing issues from 
petitions that were filed, beginning in 1990, regarding the 
labor rights of freedom of association and collective 
bargaining in Bangladesh's EPZs.  The current petition raises 
additional problems, including conditions in the RMG sector, 
child labor in the shrimp industry, and harassment and 
violence against trade unionists and labor rights NGOs under 
the state of emergency.  In the past, the USG has decided not 
to take action to suspend GSP privileges for Bangladesh based 
on GOB's passage of the EPZ Workers Association and 
Industrial Relations Act of 2004 (EWAIRA).  In delivering the 
demarche, Post should emphasize that the USG ultimately wants 
to see more than the interim associational measures called 
for in the EWAIRA, and that Bangladesh's long-term goal 
should be full rights of freedom of association and 
collective bargaining in the EPZs. 
 
¶5. (SBU) GOB action to address the concerns raised is a 
critical step to preserving Bangladesh's GSP eligibility.  We 
urge the GOB to fulfill its commitments under the EWAIRA with 
an ultimate goal of full permanent rights of association and 
collective bargaining in the EPZs.  We encourage the 
authorities to provide transparent mechanisms and procedures 
for facilitating negotiations and mediation, and to undertake 
substantive efforts to protect workers who exercise their 
rights from employer reprisal.  We further encourage the 
authorities to recognize and protect the rights of EPZ 
workers to seek assistance from the AFL-CIO Solidarity Center 
and other NGOS.  Most EPZ workers lack the experience and 
know-how necessary to advocate on their own behalf.  We 
believe that denying workers the right to contact with 
outside organizations, or harassment of those organizations, 
is a violation of the rights of freedom of association and 
collective bargaining. 
 
¶6. (U) ACTION REQUEST:  Post is requested to engage 
appropriate GOB officials to urge the GOB to take action in 
the following areas, and to indicate that, in the spring, we 
will begin to review and assess the GOB's progress in 
addressing these issues.  Post should draw upon background 
above to explain the GSP review process, as well as the 
potential benefits of the GSP program for economic 
development. 
 
Immediate Steps 
 
-- In line with the USG's desire to see the full lifting of 
the current restrictions on fundamental rights under the 
state of emergency, we urge the GOB to lift the current legal 
prohibition on trade union activities (Emergency Powers Act, 
Section 4). 
 
-- We encourage the GOB to cease actions that contribute to 
the climate of intimidation against lawful labor groups; 
including intimidation of NGO staff. Pending charges against 
the staff of labor-rights NGOs should be carefully reviewed 
for any political motives, and labor activists should not be 
subject to indiscriminate arrests and intimidation. 
 
Export Processing Zones 
 
-- As part of the EWAIRA, the GOB should allow worker-led 
referenda to form associations.  Referenda, elections, and 
constitutions by workers should be permitted (with applicable 
assistance from labor NGOs); such proceedings should not be 
subject to manipulation or influence by factory management, 
owners, or other authorities.  Additionally, workers 
associations should be able to be constituted for an 
indefinite period, without an externally defined termination 
date (currently 2010.) 
 
-- The GOB should take the appropriate steps, including 
notification in the GOB's official gazette, to establish 
independent labor tribunals, as called for in the EWAIRA; 
 
-- The GOB should end the restriction on the review of 
correspondence or grievances submitted on behalf of EPZ 
workers on the basis that they come from NGOs located outside 
of the EPZs; 
 
-- The GOB should create appropriate legal mechanisms for 
hearing grievances from worker representation and welfare 
committee (WRWC) members concerning suspensions of employees 
for union activity by employers; 
 
-- The GOB should appoint an independent labor ombudsman with 
authority to investigate and report on the implementation and 
enforcement of the EWAIRA, including responding to individual 
concerns raised by workers. Such an ombudsman should have 
credibility as an independent observer and have full access 
to the EPZs in order to conduct his or her work. 
 
-- Longer Term Changes: While the immediate steps listed 
above, if implemented, would show important progress, the GSP 
committee reiterates that the goal, as communicated by letter 
to the government of Bangladesh from then-USTR Ambassador 
Robert Zoellick in December 2004, is to see full freedom of 
association for all workers in the EPZs.  It is important to 
note that the GOB had agreed to take this action in 1992 
during consultations over an earlier GSP country practice 
review. 
 
Actions in the Ready-Made Garment Sector 
 
-- Enforce the provisions of the 12-point tripartite 
agreement in the RMG sector including: 
     1) strict enforcement of the new minimum wage, and legal 
action to enforce payment of wage arrears; 
     2) mandate the provision of appointment letters; 
     3) register unions that submit complete applications for 
registration. 
 
Child labor 
 
-- Undertake immediate action on child labor in the shrimp 
industry, including increasing the number of inspections, 
imposing fines on employers who violate minimum wage laws, 
and develop incentives to keep children in schools and out of 
the industry; 
 
-- Establish a dedicated child labor law enforcement task 
force, to include a permanently constituted child labor 
enforcement cell under the Department of Labor's Chief 
Inspectorate from the Department of Factories and 
Establishments, and accompanying provisions for a mobile 
court system. With this task force, initiate enforcement 
efforts within the shrimp and seafood processing industry 
within 12 months. 
 
¶7. (U) Washington agencies wish to thank Post for its 
excellent recent reporting on labor issues in Bangladesh and 
its cooperation on the GSP review.  Follow up inquiries may 
be directed to Aaron Scheibe in the Economic, Energy, and 
Business Affairs Bureau (EEB) via email (scheibeap@state.gov) 
or phone (202-647-8202). 
RICE