The trade war between the U.S. and China has led many fashion brands to shift production to spots across Asia, including to Bangladesh, where safety issues persist years after two horrific workplace accidents killed more than 1,000 workers in 2012-2013. American clothing makers cut back on sourcing from Bangladesh or abandoned the country entirely, after the accidents.
In the aftermath, large U.S. retailers formed the Alliance for Bangladesh Worker Safety, an organization responsible for inspecting Bangladeshi factories that produced Alliance brands goods. The organization recommended improvements for structural, fire and electrical safety, and blacklisted factories that failed to make changes. When the Alliance dissolved in 2018, it said 90% of factory-safety issues had been resolved for factories in its program.
But some industry analysts say that safety and compliance issues persist, including structurally unsound factories and retaliation against employees who join unions. One global audit company has found continued use of child labor in the Bangladesh apparel supply chain, stating that over 80% of factories in South Asia were in need of improvement.
Now new tariffs have gone into effect in that already difficult environment. Since Sept. 1, most Chinese garment imports to the U.S. are subject to 15% tariffs—enough in the apparel industry to make many products uncompetitive. So companies have bulked up sourcing in Bangladesh amid “safer” conditions, and according to The Wall Street Journal (Sept. 6, 2019), at least one major brand that left—Ralph Lauren—has returned.
China remains by far the world’s largest supplier of garments. The shift to South Asia will only come gradually, in part because China’s high-quality infrastructure meant clothes could be shipped quickly from Chinese factories to the U.S.—necessary in the age of fast fashion, when consumers alight on new styles every few weeks.
Classroom discussion questions:
- Besides tariffs, what other factors are driving manufacturers out of China?
- What are the plusses and minusses of Bangladeshi production?