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NEWS and REPORTS => World News => Topic started by: NBCNews on May 01, 2013, 03:30 AM

Title: EU considers trade action after Bangladesh factory collapse
Post by: NBCNews on May 01, 2013, 03:30 AM
   (http://msnbcmedia.msn.com/j/MSNBC/Components/Photo/_new/130430-bangladesh-hmed-7p.photoblog600.jpg)Khurshed Rinku / ReutersA view of rescue workers attempting to find survivors from the rubble of the collapsed Rana Plaza building on April 30.By Susan Taylor, Neha Alawadhi, Serajul Quadir and Rema Paul, ReutersThe European  Union voiced strong concern over labor conditions in Bangladesh after a building  collapse there killed hundreds of factory workers, and said it was considering  action to encourage improvements, including the use of its trade preference  system.

Anger has been growing since the illegally built structure  collapsed last week, killing at least 390 people. Hundreds remain unaccounted  for but rescue officials said on Tuesday they had given up hope of finding any  more survivors.



It was the third deadly incident in six months to raise  questions about worker safety and labor conditions in the poor South Asian  country, which relies on garments for 80 percent of its exports.

Representatives of major international garment buyers - some facing  sharp criticism in home markets for doing too little to safeguard the mostly  female workers making their clothes - met industry representatives in Dhaka on  Monday and agreed to form a joint panel to put together a new safety plan.

Clothes made in five factories inside the Rana Plaza building on the  outskirts of the capital, Dhaka, were produced for retailers in Europe and  Canada.

Late on Tuesday, the EU issued a brief statement expressing  concern and suggested it would look at Bangladesh's preferential trade access to  the EU market in considering taking action to encourage better safety standards  and labor conditions.

Follow @NBCNewsWorld (http://twitter.com/NBCNewsWorld) "The EU is presently considering appropriate  action, including through the Generalised System of Preferences (GSP) - through  which Bangladesh currently receives duty-free and quota-free access to the EU  market under the ‘Everything But Arms' scheme - in order to incentivize  responsible management of supply chains involving developing countries," said  the statement, issued by EU foreign policy chief Catherine Ashton and Trade  Commissioner Karel de Gucht.

About 3.6 million people work in  Bangladesh's garment industry, making it the world's second-largest apparel  exporter. The bulk of exports - 60 percent - go to Europe.

Ashton and de  Gucht said they were deeply saddened by the "terrible loss of life",  particularly because it followed a fire in the Tazreen Fashion factory in a  Dhaka suburb in November that killed 112 people.

The sheer scale of  this disaster and the alleged criminality around the building's construction is  finally becoming clear to the world," Ashton and de Gucht said.

Also on  Tuesday, following a private emergency meeting of Canadian retailers, the Retail  Council of Canada said it would develop a new set of guidelines.

That  emergency meeting brought together retailers including Loblaw, Sears Canada Inc  and Wal-Mart Canada, to discuss how they would deal with the tragedy.

Representatives of some 45 companies, including Gap Inc, H&M, J.C.  Penney, Nike Inc, Wal-Mart, Britain's Primark, Marks & Spencer and Tesco,  and Li & Fung, also met officials from the Bangladesh Garment Manufacturers  and Exporters Association in Dhaka on Monday to discuss safety.

The  Retail Council of Canada, which represents operators of more than 43,000 stores  in Canada, said it would work with international organizations, the Bangladeshi  government and others to find ways to address safety in the Bangladesh garment  industry.

Primark and Loblaw have promised to compensate the families of  garment workers killed while making their clothes.

AGONISING WAIT

With no hope left of finding survivors, heavy machinery is being used to  clear concrete and debris from the site in the commercial suburb of Savar, about 20 miles from Dhaka.

It was still an agonizingly slow process  for families waiting for news on loved ones who worked in the Rana Plaza, which  collapsed with about 3,000 people inside. About 2,500 people have been rescued  so far, many of them injured.

With angry protests continuing daily since  Bangladesh's worst industrial accident, the building's owner was brought before  a court in Dhaka on Monday, where lawyers and protesters chanted "hang him, hang  him."

About 20 people were injured on Tuesday as police fired teargas,  rubber bullets and water cannon to disperse protesters in Savar calling for the  death penalty for the owners of the building and factories.

Officials in  Bangladesh have said the eight-story complex had been built on swampy ground  without the correct permits, and more than 3,000 workers entered the building  last Wednesday despite warnings it was structurally unsafe.

Eight people  have been arrested - four factory bosses, two engineers, building owner Mohammed  Sohel Rana and his father, Abdul Khalek. Police are looking for a fifth factory  boss, Spanish citizen David Mayor, although it was unclear whether he was in  Bangladesh at the time of the accident.

The garment industry employs  mostly women, some of whom earn as little as $38 a month.

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