CGD Policy Blogs
This is a joint post with Christian Meyer.
“Sorry for the nuisance: we are changing Brazil,” reads the sign carried by a young woman marching down the streets of São Paolo on June 17.
The Obama administration has announced the suspension of Bangladesh’s trade benefits under the Generalized System of Preferences (GSP) over the country’s failure to improve working conditions and protect worker rights. The decision is not surprising given the problems in Bangladesh, but, as I noted here in January, it is purely symbolic. First, GSP does not include clothing. Second, it accounts for a trivial $35 million of duty-free exports, or less than 1 percent of Bangladesh’s total exports to the United States, most of which (90 percent) is clothing. Meanwhile, most Bangladeshi exports face an average duty of 15 percent, one of the highest rates in the US market.