Finally, the Bangladeshi Cabinet gave the nod to the draft Bangladesh EPZ Labour Law 2016, with provisions for forming legal trade unions in factories inside of the Export Processing Zones (EPZ). Out of the 16 conditions set by the US to be fulfilled by the Bangladesh government for regaining the GSP (Generalised System of Preferences) in the US market, the last condition was allowing trade unions in factories.

For reinstatement of GSP privilege, the Bangladesh government has already submitted the progress report on the implementation of 16 conditions to the United States Trade Representative (USTR), the chief trade negotiation body for the US government. The GSP was suspended for Bangladesh in June 2013, due to serious shortcomings in workplace safety and labour rights.

Apart from suspending the GSP benefit after the Rana Plaza building collapse, the US government gave the 16 conditions as ‘Bangladesh Action Plan.’ Earlier, the government made delays in allowing unions in the EPZs, as the foreign investors were divided on the issue. Investors of some countries said the unions would hamper the production while others argued that the unions would establish labor rights. If this draft, which amends EPZ Workers' Welfare and Industrial Relations Act, 2010, is passed by Parliament and made into law, the Workers' Welfare Associations (WWA) in factories inside of the EPZs would act as the legal trade unions.