24/04/2014

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:00:00. > :00:00.party would consider a Coalition with either party if neither had an

:00:00. > :00:00.outright majority. Now on BBC News all the latest business news live

:00:00. > :00:17.from Singapore. One year on, we look at what has

:00:18. > :00:23.changed from the worst industrial disaster to hit Bangladesh. Global

:00:24. > :00:31.trade ambitions, the US President is in Japan to push for progress.

:00:32. > :00:39.Thanks for watching Asia Business Report. We start off in Bangladesh

:00:40. > :00:45.in the south Asian nation witnessed its worst ever industrial disaster

:00:46. > :00:48.one year ago when a clothing factory collapsed, killing more than 1100

:00:49. > :00:58.people. It severely dented the image of the country 's garment industry.

:00:59. > :01:02.Our correspondent reported on the disaster and now looks at what has

:01:03. > :01:09.changed. This woman was lucky enough to

:01:10. > :01:12.survive the disaster. She was among hundreds of women working inside the

:01:13. > :01:18.complex when it came crashing down last year. Trapped under the rubble,

:01:19. > :01:29.she was rescued two days after the disaster. Her mangled legs had to be

:01:30. > :01:33.amputated. TRANSLATION: I am borrowing money to survive. My

:01:34. > :01:39.husband is taking care of me and he has no time to go to work. Who will

:01:40. > :01:45.look after me and do the housework? One year later, I am still waiting

:01:46. > :01:51.for my full compensation. That is because Western brands and retailers

:01:52. > :01:54.have so far contributed only $15 million to a $40 million fund to

:01:55. > :02:01.compensate victims and their families. Money has only just

:02:02. > :02:06.started trickling down and it is likely to take months to reach the

:02:07. > :02:12.victims. Thousands were saved from the rubble. It was a Bangladesh's

:02:13. > :02:20.worst ever industrial disaster. More than 1100 people were killed. The

:02:21. > :02:24.disaster was a major wake`up call for the clothing sector. A series of

:02:25. > :02:30.measures have been taken in the last year. The minimum monthly wage for

:02:31. > :02:37.workers has been increased from $38 per month to $68. Western retailers

:02:38. > :02:42.have also set up a fund to help improve safety standards in the

:02:43. > :02:46.clothing industry in Bangladesh. Around 200 new safety inspectors

:02:47. > :02:54.will be appointed to try and prevent another major collapse or fire in

:02:55. > :02:58.the factories. For others who escaped, they are back at work in

:02:59. > :03:07.new jobs. See the factories but life has not been easy. TRANSLATION: I do

:03:08. > :03:11.not want to work any more. I get flashbacks about those horrible

:03:12. > :03:15.days. They cannot be public as I have nightmares but I don't have any

:03:16. > :03:19.option as we are poor. My father and brother are no more. We have to work

:03:20. > :03:24.to pay our bills. Learning the lessons from the disaster is crucial

:03:25. > :03:29.to the economy. The clothing sector represent nearly 80% of exports but

:03:30. > :03:35.while Western retailers say they want safety to improve, they have

:03:36. > :03:44.not been shy to warn they will go elsewhere if cost is rise to high.

:03:45. > :03:49.Earlier I spoke to the deputy director`general of the

:03:50. > :03:55.International Labour Organisation. I started by asking him what has

:03:56. > :04:02.changed in a year? The political commitment, when I compare that to

:04:03. > :04:04.one year ago when I was here, the commitment is much more decisive in

:04:05. > :04:12.terms of fixing the problem. Secondly, the whole community,

:04:13. > :04:24.nationally and internationally, the lament has in to make sure we work

:04:25. > :04:32.with authorities. In the past nine months after the adoption of the new

:04:33. > :04:37.Labour laws, now we are working with trade unions so they can exercise

:04:38. > :04:42.freedom of association. 900 factories have been inspected. We

:04:43. > :04:48.still have more than 2000 to go. You can see that a lot of actions

:04:49. > :04:57.initiated, have been implemented to make sure it is reduced the risk of

:04:58. > :05:02.this type of tragedy. This UN supported scheme is only barely a

:05:03. > :05:08.third full. Why the shortfall? Essentially, it is because we can't

:05:09. > :05:16.talk about legal responsibility so we cannot enforce on anybody to put

:05:17. > :05:21.that much. We need to go back. Pressing people as much as we can

:05:22. > :05:27.and secondly, the fact that the international buyers say that those

:05:28. > :05:32.employees are not their employees. They have a contract with a local

:05:33. > :05:38.suppliers. You have this lack of legal framework to make it binding

:05:39. > :05:41.to the different stakeholders. This is really the challenge and one of

:05:42. > :05:49.the lessons we must learn in moving forward. Barack Obama spent his

:05:50. > :05:54.first night in Japan on a tour of Asia. Today he will be having talks

:05:55. > :06:02.with Shinzo Abe and high up on their agenda will be the potential free

:06:03. > :06:06.trade deal. US and Japan hold the key to the success of negotiations

:06:07. > :06:11.but even if a deal is done between the two countries or the 12

:06:12. > :06:19.countries involved, could Obama get the approval from Congress to sign

:06:20. > :06:23.it? This is the UPS sorting facility in Kentucky. Thousands of packages

:06:24. > :06:29.make their way to hear everyday. If the US agrees on a free trade deal

:06:30. > :06:34.with 12 other countries, this place could get a whole lot busier. We

:06:35. > :06:38.would see a tremendous growth from a trade agreement. We have seen that

:06:39. > :06:41.in past trade agreements. Some previous agreement that were

:06:42. > :06:48.negotiated like the US, Singapore agreement and be US, Chile free

:06:49. > :06:54.trade agreement. We saw 20% increase in volume. Past agreements have

:06:55. > :07:00.taken manufacturing jobs from the US. Which is why not all businesses

:07:01. > :07:08.are getting behind the massive trade partnership that would link nearly

:07:09. > :07:15.60% of global GDP. Businesses like Ford, maker of the iconic mustang.

:07:16. > :07:20.It could hurt our business. It could in balance and take jobs away from

:07:21. > :07:24.American workers and use that for countries that are trying to

:07:25. > :07:28.manipulate their currency and always export their unemployment problems

:07:29. > :07:34.to other parts of the world and we do not think that is right. US

:07:35. > :07:39.manufacturers often complain that countries engaging in currency

:07:40. > :07:42.manipulation by keeping it artificially low has had a

:07:43. > :07:48.devastating impact on America's manufacturing sector. In last year

:07:49. > :07:53.'s state of the union address, President Obama made specific

:07:54. > :07:58.mention of the DPP. To boost American exports, support jobs and

:07:59. > :08:03.level the playing field in the growing markets of Asia, we intend

:08:04. > :08:05.to complete negotiations on the transpacific partnership and

:08:06. > :08:09.tonight, I am announcing we will launch talks on a competency of

:08:10. > :08:15.transatlantic trade and investment partnership with the EU. Trade that

:08:16. > :08:18.is fair and free across the Atlantic support millions of good paying

:08:19. > :08:24.American jobs. But this year, there was no reference to the trade deal

:08:25. > :08:28.at all. Getting fast track authority to get past regulars would be

:08:29. > :08:31.crucial in extracting concessions from Japan and other countries.

:08:32. > :08:37.Adding that through this divided Congress is unlikely. A sign that

:08:38. > :08:44.the present's biggest obstacle could be right here at home. ``

:08:45. > :08:49.president's. Two giants of the pharmaceutical company announced a

:08:50. > :08:53.cobbler Cater Deal which will see them create a new consumer

:08:54. > :09:00.healthcare business. GSK will buy the vaccine business of Novartis. It

:09:01. > :09:12.is the latest in a slew of deals pointed to a consolidation for the

:09:13. > :09:19.drugs industry. Our correspondent explain why these deals are taking

:09:20. > :09:25.place. One reason it is scientific. Drug design is causing more fairly

:09:26. > :09:30.than successes and rational drug design is why you have big Pharma

:09:31. > :09:35.companies. Second is government, government is restricting access to

:09:36. > :09:42.doctors. You need much different salesforce models. The third is

:09:43. > :09:47.capital markets. They are punishing companies when they get late stage

:09:48. > :09:53.failures and so they are looking for different ways to spread the risk.

:09:54. > :09:58.Fewer companies with fewer product makes more sense. What does this

:09:59. > :10:02.mean for Asia's pharmaceutical sector? For outbound, Asian

:10:03. > :10:06.companies need to start increasing their global footprint because this

:10:07. > :10:11.is a situation with fewer competitors and more consolidation.

:10:12. > :10:20.Companies, if they do it right, it will increase their global

:10:21. > :10:23.footprint. For inbound, companies could increase their Asia footprint

:10:24. > :10:28.and there is a lot involved in that that they need to deal with.

:10:29. > :10:39.Complexity, regular Tory and quality big three of them. Thank you for

:10:40. > :10:42.investing your time with us. The top stories this hour.

:10:43. > :10:45.Hamas returns to share power with Fatah ` but Israel pulls out of

:10:46. > :10:50.peace talks as a new unity government is formed in Gaza.

:10:51. > :10:52.Talking to the Emperor of Japan ` President Obama reassures Asian

:10:53. > :10:54.leaders that the US will counter China and strengthen trade and

:10:55. > :10:55.security