Why did major US retailers reject the Bangladesh factory safety pact?

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Major US Retailers Opted for Self-Regulation Over Bangladesh Safety Accord

Leading Western retailers, including Carrefour, Primark, and Tesco, have committed to the Accord on Fire and Building Safety in Bangladesh, a legally binding agreement aimed at improving factory conditions following the Rana Plaza collapse. This pact mandates that participating retailers underwrite renovations and commit to factories for two years, with a central headquarters in the Netherlands overseeing implementation. In contrast, prominent American brands such as Walmart and Gap have not signed the accord, instead choosing to pursue their own safety initiatives.
Alternative Safety Measures Pursued by US Brands

While European retailers like Carrefour, Primark, and Tesco have joined the Accord on Fire and Building Safety, major US brands have opted for alternative approaches. Walmart, the world's largest retailer and a significant buyer from Bangladesh, has stated its intention to inspect its suppliers in the country and subsequently publish the findings. Similarly, Gap announced in October that it had initiated its own safety drive to address factory conditions.
Rationale Behind the Accord's Structure

The Accord on Fire and Building Safety was established in response to the catastrophic collapse of the Rana Plaza complex in April, which resulted in 1,129 fatalities and highlighted severe safety issues within Bangladesh's garment industry. Under the terms of the pact, retailers are required to complete initial inspections at all their contracted factories within nine months and implement necessary renovations and repairs. The agreement also mandates a two-year commitment to factories undergoing renovation work, underscoring a long-term approach to safety improvements.
Concerns Regarding Accord's Implementation and Scope

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA), which represents a substantial number of garment factories, initially welcomed the accord, viewing it as a sign of retailers' commitment to the country. However, some manufacturers have since voiced criticism, suggesting that the BGMEA should have been more involved in the accord's development and decision-making processes. This sentiment was echoed by a BGMEA vice-president, who stated that manufacturers should have been included in the accord and its governing bodies, given that their factories are subject to inspection.

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Why did major US retailers reject the Bangladesh factory safety pact?

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