24/04/2014 Asia Business Report

party would consider a Coalition with either party if neither had an

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

from Singapore. One year on, we look at what has

changed from the worst industrial disaster to hit Bangladesh. Global

trade ambitions, the US President is in Japan to push for progress.

Thanks for watching Asia Business Report. We start off in Bangladesh

in the south Asian nation witnessed its worst ever industrial disaster

one year ago when a clothing factory collapsed, killing more than 1100

people. It severely dented the image of the country 's garment industry.

Our correspondent reported on the disaster and now looks at what has

changed. This woman was lucky enough to

survive the disaster. She was among hundreds of women working inside the

complex when it came crashing down last year. Trapped under the rubble,

she was rescued two days after the disaster. Her mangled legs had to be

amputated. TRANSLATION: I am borrowing money to survive. My

husband is taking care of me and he has no time to go to work. Who will

look after me and do the housework? One year later, I am still waiting

for my full compensation. That is because Western brands and retailers

have so far contributed only $15 million to a $40 million fund to

compensate victims and their families. Money has only just

started trickling down and it is likely to take months to reach the

victims. Thousands were saved from the rubble. It was a Bangladesh's

worst ever industrial disaster. More than 1100 people were killed. The

disaster was a major wake`up call for the clothing sector. A series of

measures have been taken in the last year. The minimum monthly wage for

workers has been increased from $38 per month to $68. Western retailers

have also set up a fund to help improve safety standards in the

clothing industry in Bangladesh. Around 200 new safety inspectors

will be appointed to try and prevent another major collapse or fire in

the factories. For others who escaped, they are back at work in

new jobs. See the factories but life has not been easy. TRANSLATION: I do

not want to work any more. I get flashbacks about those horrible

days. They cannot be public as I have nightmares but I don't have any

option as we are poor. My father and brother are no more. We have to work

to pay our bills. Learning the lessons from the disaster is crucial

to the economy. The clothing sector represent nearly 80% of exports but

while Western retailers say they want safety to improve, they have

not been shy to warn they will go elsewhere if cost is rise to high.

Earlier I spoke to the deputy director`general of the

International Labour Organisation. I started by asking him what has

changed in a year? The political commitment, when I compare that to

one year ago when I was here, the commitment is much more decisive in

terms of fixing the problem. Secondly, the whole community,

nationally and internationally, the lament has in to make sure we work

with authorities. In the past nine months after the adoption of the new

Labour laws, now we are working with trade unions so they can exercise

freedom of association. 900 factories have been inspected. We

still have more than 2000 to go. You can see that a lot of actions

initiated, have been implemented to make sure it is reduced the risk of

this type of tragedy. This UN supported scheme is only barely a

third full. Why the shortfall? Essentially, it is because we can't

talk about legal responsibility so we cannot enforce on anybody to put

that much. We need to go back. Pressing people as much as we can

and secondly, the fact that the international buyers say that those

employees are not their employees. They have a contract with a local

suppliers. You have this lack of legal framework to make it binding

to the different stakeholders. This is really the challenge and one of

the lessons we must learn in moving forward. Barack Obama spent his

first night in Japan on a tour of Asia. Today he will be having talks

with Shinzo Abe and high up on their agenda will be the potential free

trade deal. US and Japan hold the key to the success of negotiations

but even if a deal is done between the two countries or the 12

countries involved, could Obama get the approval from Congress to sign

it? This is the UPS sorting facility in Kentucky. Thousands of packages

make their way to hear everyday. If the US agrees on a free trade deal

with 12 other countries, this place could get a whole lot busier. We

would see a tremendous growth from a trade agreement. We have seen that

in past trade agreements. Some previous agreement that were

negotiated like the US, Singapore agreement and be US, Chile free

trade agreement. We saw 20% increase in volume. Past agreements have

taken manufacturing jobs from the US. Which is why not all businesses

are getting behind the massive trade partnership that would link nearly

60% of global GDP. Businesses like Ford, maker of the iconic mustang.

It could hurt our business. It could in balance and take jobs away from

American workers and use that for countries that are trying to

manipulate their currency and always export their unemployment problems

to other parts of the world and we do not think that is right. US

manufacturers often complain that countries engaging in currency

manipulation by keeping it artificially low has had a

devastating impact on America's manufacturing sector. In last year

's state of the union address, President Obama made specific

mention of the DPP. To boost American exports, support jobs and

level the playing field in the growing markets of Asia, we intend

to complete negotiations on the transpacific partnership and

tonight, I am announcing we will launch talks on a competency of

transatlantic trade and investment partnership with the EU. Trade that

is fair and free across the Atlantic support millions of good paying

American jobs. But this year, there was no reference to the trade deal

at all. Getting fast track authority to get past regulars would be

crucial in extracting concessions from Japan and other countries.

Adding that through this divided Congress is unlikely. A sign that

the present's biggest obstacle could be right here at home. ``

president's. Two giants of the pharmaceutical company announced a

cobbler Cater Deal which will see them create a new consumer

healthcare business. GSK will buy the vaccine business of Novartis. It

is the latest in a slew of deals pointed to a consolidation for the

drugs industry. Our correspondent explain why these deals are taking

place. One reason it is scientific. Drug design is causing more fairly

than successes and rational drug design is why you have big Pharma

companies. Second is government, government is restricting access to

doctors. You need much different salesforce models. The third is

capital markets. They are punishing companies when they get late stage

failures and so they are looking for different ways to spread the risk.

Fewer companies with fewer product makes more sense. What does this

mean for Asia's pharmaceutical sector? For outbound, Asian

companies need to start increasing their global footprint because this

is a situation with fewer competitors and more consolidation.

Companies, if they do it right, it will increase their global

footprint. For inbound, companies could increase their Asia footprint

and there is a lot involved in that that they need to deal with.

Complexity, regular Tory and quality big three of them. Thank you for

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