The United States has suspended special trade privileges for Bangladesh over lack of proper work conditions.
US Trade Representative Michael Froman pointed to several recent fatal accidents in its huge clothing sector in which hundreds of people died.
He said the accidents had highlighted some of the serious shortcomings in worker rights and workplace safety standards in Bangladesh.
According to the BBC, two months ago, a nine-storied factory collapsed near Dhaka killed 1,129 people, which was Bangladesh's worst industrial disaster.
The death toll from the 24 April accident and others focused global attention on low safety standards in Bangladesh's garment factories.
Bangladesh fire department said more than 400 garment workers have been killed in at least 213 factory fires between 2006 and 2009.
According to the report, President Barack Obama had ordered to suspend Bangladesh from its duty-free trade privileges under the terms of a US trade programme called the Generalized System of Preferences (GSP), designed to promote economic growth in developing countries.
Froman said the US Government has worked closely with the government of Bangladesh to encourage the reforms needed to meet basic standards
He added that despite America's clear, repeated expressions of concern, it has not seen sufficient progress towards those reforms.
