US probe on labour, production under fire
Bangladesh has come under United State scrutiny in an investigation into “overproduction” and the use of forced labour, The New Nation reported on Saturday (14 March).
The inquiry aims to determine whether Bangladesh and some other countries produce goods beyond necessary capacity and whether they take effective measures to prevent forced labour in production.
The office of the United States Trade Representative (USTR) announced on 11 March that it would investigate 16 countries, including Bangladesh, for potential overproduction.
On 12 March, the review expanded to 60 countries to examine whether adequate measures exist to prevent products made with forced labour from entering global markets.
USTR Trade Representative Jamieson Greer said that if evidence shows a country is engaged in “unfair” trade practices, the US could impose import tariffs.
Regarding forced labour, the investigation will assess whether failure to prevent it harms US businesses.
The inquiry is expected to conclude before temporary tariffs imposed by former President Donald Trump in February expire in July.
Major competitors of Bangladesh’s garment industry, such as China, India, Cambodia, Indonesia, and Vietnam, are also under review.
The US launched this investigation after its Supreme Court invalidated Trump-era tariffs.
Formal consultations with the listed countries have begun, with written responses due by 17 March and hearings scheduled for early May.
Bangladesh’s inclusion is linked to its status as a major garment exporter. Dr. AbulKhair, Associate Professor of International Business at Dhaka University, noted, “The US is focusing on countries with high exports to its market. Bangladesh naturally falls under this review.”
The investigation will primarily look at whether subsidies, low-cost labour, or other practices reduce production costs and affect US competitiveness.
While Bangladesh, as a least-developed country, may receive exemptions, negotiations will be key to protecting its interests. Dr. MostafizurRahman, CPD fellow, said that maintaining production capacity is normal in a market economy, allowing industries to respond to changing demand.
The US is a crucial trade partner for Bangladesh, with bilateral trade valued at around $8 billion annually. Bangladesh exports approximately $6 billion of goods, mainly garments, while importing $2 billion, giving the US a $4 billion trade surplus.
Analysts note that previous agreements and tariff arrangements, including reciprocal trade deals signed shortly before Bangladesh’s national elections, were intended to protect the garment sector but have yet to be fully implemented.
The investigation underscores the US’s focus on safeguarding its domestic industries while highlighting the challenges for Bangladesh in balancing export growth, compliance with international labour standards, and maintaining trade relationships with a major partner.
