US to review its GSP benefits to Sri Lanka

The United States announced yesterday that its Trade Representative (USTR) has accepted a petition to review whether Sri Lanka met Generalized System of Preferences (GSP) eligibility criteria related to worker rights in 2009.

The U.S. Embassy in Colombo said in 2008, as part of the annual review process, the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), an American trade union, filed a petition with the US Government requesting a review of worker rights in Sri Lanka. The organization has resubmitted an updated petition for last year.
Under the U.S. GSP program which is designed to promote economic growth in the developing world, 131 countries including Sri Lanka receive preferential duty-free treatment for over 3,400 products.
Sri Lanka in 2009 has received GSP benefits of approximately $116 million of goods. Products covered under the GSP program included machinery, electrical goods, chemical products, agricultural products, jewelry and much more but not most textiles and apparel.
To benefit from the GSP program countries must ensure that they have taken or are taking steps to afford their workers of internationally recognized worker rights including the right of association, and the right to organize and bargain collectively.
Further they must set a prohibition on compulsory labor, a minimum age for the employment of children and a prohibition on the worst forms of child labor. The countries must also provide acceptable conditions of work with respect to minimum wages, hours of work and occupational safety and health.
Any person may file a request to review the designation of any beneficiary country with respect to any of the designation criteria, the Embassy said.
The US Embassy said it shared the petition from the AFL-CIO with the government several months ago.
According to the Embassy, following the acceptance of the petition by the USTR, there will be a public hearing, likely held in August, to discuss the worker rights issues raised by the AFL-CIO petition. The Government of Sri Lanka will be invited to participate in the hearing.
However, before the hearing, the United States and Sri Lankan government will engage in a dialogue on any areas of concern with respect to worker rights.
"Acceptance of the petition is not a decision to revoke GSP nor does it set a deadline for a decision on action on GSP privileges. It is the beginning of a formal, collaborative process to work with the Sri Lankan government to address the concerns in the petition and work to improve support of and adherence to worker rights," the Embassy statement said.
GSP privileges will continue throughout the process, it assured.
Several countries remain under review of whether they meet eligibility criteria, USTR says. Those countries are Lebanon, Russia and Uzbekistan regarding IPR protection and Bangladesh, Niger, the Philippines and Uzbekistan regarding worker rights.
The U.S. says it has a strong working relationship with the Government of Sri Lanka on labor issues.
"As an example of our productive working relationship, the U.S. Government has recently sponsored a labor program, administered through the International Labor Organization. This program emphasizes a tripartite dialogue on labor issues with the Government of Sri Lanka, employers, and unions," the Embassy statement said.