The United States cut its long standing trade benefits with Bangladesh on Thursday in move said to be in response to the poor working conditions within the country's garment industry.
Although the move is thought not to have a significant impact on Bangladesh's export industry, it is believed that it could encourage similar a move by the European Union, which would have a bigger impact as it is duty free.
In a statement Obama said,
"I have determined that it is appropriate to suspend Bangladesh ... because it is not taking steps to afford internationally recognized worker rights to workers in the country,"
The government adviser to Prime Minister Sheikh Hasina said,
"We are desperately trying to upgrade the situation of our garment factories and we expect assistance, not punitive action,"