summary results bangladesh

8/11/2019 Summary Results Bangladesh

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J. Agreement on rade-Related Aspects ofIntellectual Property Rights (RIPS) ........ 10

K. Dispute Settlement ................................... 11

L. rade Policy Reviews ................................ 11

M. Enhanced Integrated Framework (EIF) ..... 12

N. General recommendations to improveeffectiveness of WO Special SupportMeasures .................................................. 12

SECTION II. SPECIAL SUPPORT MEASURES RELATED TO

PREFERENTIAL MARKET ACCESS

A. Non-reciprocal preference arrangements ofdeveloped countries .................................. 13

B. Non-reciprocal preference arrangements of

developing countries ................................. 14C. Reciprocal trade arrangements .................. 15

D. Recommendations to improve internationalsupport measures related to preferentialmarket access ............................................ 16

Survey on International Support Measures specific to the

Least Developed Countries (LDCs)

related to WTO Provisions and Preferential Market Access

Bangladesh

SUMMARYRESULTS

prepared by the United Nations Department of Economic and Social Affairs (DESA)and the Committee for Development Policy (CDP) Secretariat*

TABLEOFCONTENTS

SECTION I. SPECIAL SUPPORT MEASURES UNDER THE WTO

A. Compliance with the WO Agreements ... 2

B. Agreement on Agriculture (AoA) .............. 3

C. Agreement on the Application of Sanitaryand Phytosanitary Measures (SPS) ............ 4

D. Agreement on echnical Barriers torade (B)............................................. 6

E. Agreement on rade-Related InvestmentMeasures (RIMs) ................................... 7

F. Agreement on Implementation ofArticle VII of the GA 1994(Customs Valuation) ................................. 8

G. Agreement on Import Licensing Procedures 9

H. Agreement on Subsidies and CountervailingMeasures (ASCM) .................................... 9

I. General Agreement on rade in Services(GAS) .................................................... 9

* This summary was prepared by the DESA/CDP Secretariat, based on the survey response submitted by a consultant from

Bangladesh. The content, findings, interpretations, and conclusions as expressed in this summary reflect the views of its authors,

and do not necessarily represent the views of the United Nations or Bangladesh. The views presented in this document should not

be considered as the official position of Bangladesh.

March 2012


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SECTION I.

SPECIAL SUPPORT MEASURES UNDER THE WTO

A. Compliance with the WTO Agreements

Country response

Bangladesh had to undertake various obligations underthe Uruguay Round Agreements, covering commitmentson market access, subsidies, and the enactment of na-tional rules and regulations, or the modification of exist-ing national rules and regulations as per provisions of the

various WO Agreements.

Market-access commitments were aimed at tariffbindings at the ceiling level of 200% on agriculturalproducts, and of 50% on 13 other agriculture productsand 31 industrial products. Besides, Bangladesh alsobound other duties and charges (Article II.2b GA)at 2.5% for all products and undertook the commitmentto withdraw all quantitative restrictions by 2005.

In the area of subsidies, the obligations included (a)keeping all domestic support in favour of agricultural

production below 10% of the value of total agricultureproduction, (b) prohibiting the introduction of anyexport subsidies in agriculture; and (c) withdrawal ofsubsidies or support mesaures contingent upon the use ofdomestic over imported goods by 2003.

Other requirements included obligations relating tointroducing the GA valuation system, national anti-dumping laws and regulations, and countervailing andsafeguard measures.

Bangladesh reported that it was in a position to com-ply with market-access committments in most of thecases, but faced great difficulties in terms of complyingwith some other obligations. For example, despite hav-ing enacted laws and regulations in accordance with theWO agreements, the implementation of such rules waschallenging, owing to the lack of information requiredto take action under these rules.

Pursuant to the Understanding on the Balance-of-payments Provisions of the GA 1994, Bangladeshwas scheduled to withdraw quantitative restrictions onimports for 17 categories of products that were beingmaintained on balance of payments grounds, by 2005However, as a WO Member, Bangladesh resorted toGA Article XVIII:C as a reason to enforce importrestrictions on 5 of these categories beyond 2005, dueto their importance in terms of employment generationTe country was not allowed to invoke Article XVIII:C

but Members agreed that Bangladesh maintained restric-tions, until 2009, on the 4 following products: cartonpoultry, eggs, and salt. Bangladesh has already withdrawnthe quantitative restrictions as per its commitment.

In addition, Bangladesh, along with other LDCs, re-quested an extension of the time frame for complying withRIPS and RIMs obligations. An extension of the tran-sitional period for implementing the RIPS Agreementuntil 2016 for pharmaceutical products and July 1 2013for other products was granted to LDCs as a group of

members. LDCs have also been allowed to maintain exist-ing RIMs and introduce new measures until 2020.

Bangladesh anticipated difficulties in ensuring compli-ance with the WO obligations, such as provisions relatedto subsidies, compliance with SPS and B AgreementsRIMS, RIPS etc. Bangladesh has put in place variousrules and regulations pertaining to SPS and B mea-sures. However, faced with complaints over complianceBangladesh may be unable to justify its scientific ratio-nale, due to inadequate human resources and skills.

Tere are some instances and indications of productsbeings dumped into Bangladesh market. But the privatesectors lack of capacity to furnish evidence on the exist-ence of such dumping practices, and on the alleged in-jury caused to the domestic industry by such dumpingwhich are two prerequisites for initiating any investiga-tion, does not permit any investigation with respect toantidumping and countervailing procedures.

Recognizing that the LDCs may face difficulty in meetingthe rules set out by the WTO, the Decision on Measures

in Favour of Least-developed Countriesahad foreseen the

need to ensure their effective participation in the world

trading system and to improve their trading opportuni-

ties. A great number of Multilateral Trade Agreements

(MTAs) provide Special and Differential Treatment (SDT) to

LDCs in terms of longer transitional periods or, in some

cases, permanent exemptions, for so long as they remain

in that category. Many WTO Agreements commit WTO

Members, primarily among developed countries, to take

special measures in favour of LDCs, such as technical and

financial assistance, which ought to be implementedexpeditiously and subject to regular reviews.

a Annexed to the Final Act of the Uruguay Round.


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B. Agreement on Agriculture (AoA)..

The Agreement on Agriculture (AoA) initiates a reform

process aimed at establishing a fair and market-oriented

agricultural trading system through negotiations (Article 20)

on domestic support, market access, and export subsidies,

known as the three central concepts or pillars of the AoA.

WTO Members agreed to continue the reform processthrough negotiations taking into account special and

differential treatment to developing countries, including

concerns such as food security, and the possible negative

effects of reform implementation on LDCs and Net Food-

Importing Developing Countries (NFIDCs).

Article 15.2 of the AoA provides LDCs with an overall ex-

emption from undertaking reduction commitments, and

a more specific exemption from bound agricultural tariff

reduction as far as the market access pillar is concerned.

Since none of the LDCs scheduled commitments with

respect to domestic support and export subsidies whenthey became WTO Members, this provision does not rep-

resent an additional flexibility for LDCs under both pillars.b

Although they have not scheduled commitments related

to trade distorting domestic support, LDCs are allowed to

maintain domestic support measures that fall under the

categories exempt from reduction commitments, such as

green box subsidies, developmental measures (Article 6.2)

and de minimis levels of support (for developing countries,

this is equal to 10% of the value of agricultural production

during the relevant year).

LDCs as Net food ImportersThe Committee on Agriculture monitors the follow-up

to the Decision on Measures Concerning the Possible

Negative Effects of the Reform Programme on Least-

Developed and Net Food-Importing Developing Countries

(Article 16.2 AoA). In this decision, trade ministers agreed,

inter alia, (i) to adopt guidelines to ensure that an increas-

ing proportion of basic foodstuffs is provided to LDCs and

NFIDCs in fully grant form and (ii) to give full consideration

to requests for the provision of technical and financial as-

sistance to LDCs and NFIDCs to improve their agricultural

productivity and infrastructure. In 1995, the Committee

established notification requirements under which donor

Members are required to submit data on quantity of food

aid and technical and financial assistance to improve agri-

cultural productivity provided to LDCs and NFIDCs.

b Twenty-five WTO Members can subsidize exports, but only for products on which

they have commitments to reduce subsidies. 34 WTO Members have commitments

to reduce their trade-distorting domestic supports in the amber box (i.e to reduce the

total aggregate measurement of support or AMS).

www.wto.org/english/tratop_e/agric_e/negs_bkgrnd08_export_e.htm

www.wto.org/english/tratop_e/agric_e/negs_bkgrnd08_domestic_e.htm

Country response

Domestic support

Bangladesh is not required to undertake any reduc-tion commitment; when the country became a WOMember, its Aggregate Measurement of Support(AMS) was at about 2-3% of agricultural GDP, waybelow the permissible threshold of 10% of agriculturaproduction (de minimis). Te country has not so farprovided any agricultural export subsidies.

Bangladesh offers domestic support in the form ofsubsidies (input and output subsidies, for example, sub-sidized fertilizer and seed procurement).

LDCs as Net food Importers1

Food aid. After 1995, Bangladesh continued to receive

food aid and project aid in agriculture, but the countryreported that inflows in food aids have gradually de-creased in volume in recent years (see Annex able 1).

All food aid received by Bangladesh has been ingrant form since 1985. Major donors include AustraliaCanada, Germany, Japan, the United States andSaudi Arabia. (Source: External Resources Division ofBangladesh).

Technical assistance. Various bilateral and multilateralorganizations have provided technical and financial as-sistance to enhance agricultural output, productivitycrop diversification and strengthening of Research andDevelopment (R&D) capacity.

Additional comments

Bangladesh mentioned that SD provisions available toagriculture have been of very limited use. Te countrygave examples in the following areas:

Market access. In the Uruguay Round, all countries

including LDCs, had to withdraw all quantitative re-strictions and bind duties on all agricultural productsNo SD provision was available with this respect. WhileBangladesh, as an LDC, was not required to make any

1 See also WTO document G/AG/W/42/Rev.13,

Implementation of the Decision on Measures Concerning

The Possible Negative Effects of the Reform Programme

on Least-Developed and Net Food-Importing Developing

Countries, 15 October 2010.


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reduction commitments, this flexibility was offset by thetariff liberalization process initiated by Bangladesh un-der structural adjustment programmes, as part of WorldBank aid conditionalities in the early 1990s.

Domestic support. Bangladesh provided amber boxsupport to agriculture at the WOs establishment.However, the amount allocated for this support was

below 10% of the total value of agriculture produc-tion; hence, Bangladesh was not required to make anyreduction commitment through taking advantage ofthe relevant SD provision. Terefore, the SD provi-sion relating to exemption from reducing amber boxsubsidies has not been of any benefit to Bangladesh. Asa matter of fact, 34 countries had to make reductioncommitments, their trade-distorting domestic supportsexceeding 5% (for developed countries) and 10% (in thecase of developing countries) of the total value of theiragricultural production.

Export subsidies. At the WOs creation, only 25 coun-tries provided exports subsidies, and were required, assuch, to undertake reduction commitment. No LDCwas included in this list. Since Bangladesh did not pro-vide any agricultural export subsidies, it could not useSD in export subsidies.

Food aid and technical assistance in agriculture. Asindicated earlier, food aid and agricultural project loaninflow have been on the decline over the past years.Bangladesh indicated that one of the reasons for this

could be that its agriculture has been performing re-markably well in recent times, with the country gradu-ally moving towards food self-sufficiency.

C. Agreement on the Application of Sanitary

and Phytosanitary Measures (SPS)

The SPS Agreement has several SDT provisions for LDCs:

When preparing or applying sanitary or phytosanitary

(SPS) measures, Members shall take account of the special

needs of developing country Members, and in particular of

the least-developed country Members (Article 10.1). In or-

der to operationalize Article 10.1, the SPS Committee set

out a Procedure to Enhance Transparency of Special and

Differential Treatment in Favour of Developing Country

Members.c If a developing country identifies significant

difficulties with the proposed or final measure, the im-

porting Member would examine whether and how the

identified problem could best be addressed: (1) revision

of the SPS measure; (2) provision of technical assistance

to the exporting Member; or (3) provision of special and

differential treatment. Such a decision has to be notified

to the SPS Committee. As of 2012, no country has utilizedthis procedure.

Under Article 10.4, Members should encourage and facil-

itate the active participation of developing country Members

in the relevant international organizations, that is the

FAO/WHO Codex Alimentarius, the World Organization for

Animal Health (OIE) and the International Plant Protection

Convention (IPPC). The 2001 Doha Ministerial Decision

on Implementation-related Issues and Concerns urges

the Director-General to continue his cooperative efforts with

these organizations and institutions in this regard, including

with a view to according priority to the effective participation

of least-developed countries and facilitating the provision of

technical and financial assistance for this purpose (par. 3.5).

As a result, trust funds have been established to increase

participation of developing countries in the three stand-

ard-setting bodies.d

Under Article 9, Members agree to facilitate the provision

of technical assistance to other Members [...]inter alia, in the

areas of processing technologies, research and infrastructure,

including in the establishment of national regulatory bodies

[...]to allow such countries to adjust to, and comply with, sani-

tary or phytosanitary measures necessary to achieve the ap-

propriate level of sanitary or phytosanitary protection in theirexport markets. The 2001 Doha Ministerial Decision on

Implementation-related Issues and Concerns urges mem-

bers to ensure that technical assistance is provided to least-

developed countries with a view to responding to the special

problems faced by them in implementing the Agreement

on the Application of Sanitary and Phytosanitary Measures

(par. 3.6). In 2002, the Standards and Trade Development

Facility (STDF) was established to assist developing coun-

tries to enhance their expertise and capacity to analyze

and implement international SPS standards, and thus their

ability to gain and maintain market access.e

c See WTO documents G/SPS/33and Add.1, Decision of the SPS Committee,

27 October 2004 and WTO document G/SPS/33/Rev.1,

18 December 2009.

d See WTO document G/SPS/GEN/510/Rev.1, 23 Feb 2005, Review of theoperation and implementation of the SPS Agreement Background

document, par. 26.

e http://www.standardsfacility.org/


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Country response

Participation in standard-setting organizations2

Bangladesh indicated that it did not have any representa-tive in meetings of the World Organization for AnimalHealth (OIE) or the International Plant ProtectionConvention (IPPC), but that national delegations werepresent at meetings of the Codex Alimentarius. Te coun-try is a member of these three standard-setting bodies.

Participation in the SPS Committee

Capital-based officials have had the opportunity to at-tend some of the regular meetings of the SPS Committee.

Non-compliance with SPS measures of importing Members

Bangladesh experienced difficulties in meeting the SPSrequirements of importing countries for some of its ex-ports (see Annex able 2):

Government action.Generally, exporters facing prob-lems in meeting SPS requirements applied by import-ing countries bring their case to the attention of theGovernment. Te Government then takes the initiativeto resolve the problem through bilateral discussions withthe government of the country concerned, and under-takes corrective measures.

In the case of shrimps, the European Union (EU)imposed an import ban in 1997, which was later liftedby the EU authorities. In 2009, the EU rejected entry forat least 50 container loads of shrimps in which the pres-ence of the banned antibiotic nitrofuran was detected.Tese incidents led Bangladeshi exporters to maintainan eight month voluntary export restraint on freshwater shrimps as of May 2009. On 12 July 2010, the EUadopted a decision aimed at testing 20% of all shrimpsconsignments exported by Bangladesh into the Union,and introduced a new mandatory testing requirement,

with a view to detecting the presence of oxytetracyclineand chlortetracycline.

2 See WTO document G/SPS/GEN/49/Rev.10, 4 March 2010,

on Membership in WTO and international standard-setting

bodies.

Notifying difficulties with proposed SPS measures of

other WTO Members

Bangladesh does not have a regular system to monitorSPS measures notified to the WO and evaluate theirimpact on trade. For this reason, Bangladesh does notnotify the WO when it faces potential difficulties withproposed SPS regulations by importing Members.

Technical assistance

In 1997, the EU provided financial and technical assis-tance to help Bangladesh comply with Hazard AnalysisCritical Control Point (HACCP) requirements, afood safety management system. In the last five yearsBangladesh has received technical and financial as-sistance from the EU and UNIDO under the projecttitled Bangladesh Quality Support programme. Teprogram has focused on raising awareness and building

capacity within the private sector to meet the standardsconformity assessment, and packaging requirements ofexport markets in a competitive manner.

Bangladesh has also received some assistance from theIndian Government to strengthen the capacity of theBangladesh Standards and echnical Institute (BSI).

STDF Assistance3

Te Government of Bangladesh is yet to receive any sup-

port from the SDF, which will be considered after thecompletion of the Diagnostic rade Integration Study(DIS) under the Enhanced Integrated Framework(EIF). Te World Bank has been entrusted with theDIS and is currently engaged in the study.

Additional comments

Te main reasons for not appropriately taking advantageof the SD provisions under the SPS Agreement are re-lated to inadequate human resources within the govern-

ment dealing with WO issues, and the lack of propercoordination among the various ministries monitoringthe WO Agreements and implementing SPS measures

3 See WTO document G/SPS/GEN/1029, 23 June 2010, for an

overview of STDF projects.


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Country response

Participation in the TBT Committee

Representatives of Bangladesh rarely participate in meet-ings of the B Committee. Between 1995 and 2010the country did not make any notification to the BCommittee.4

Tere is lack of capacity to regularly examine B-related notifications both within the government and inthe private sector. As a result, Bangladesh has not beenable to assess trade impact of the B measures and puton record its Specific rade Concerns regarding techni-cal regulations and standards.

Non-compliance with technical regulations or standards

of importing MembersSome consignments of Bangladesh major export prod-ucts, such as leather, knitwear, woven garments andpharmaceuticals were rejected for lack of compliancewith technical regulation and packaging requirementsin importing countries.

4 See WTO document G/TBT/29, 8 March 2011.

D. Agreement on Technical Barriers

to Trade (TBT)

The TBT Agreement recognizes that developing countries are

not able to fully implement the Agreement because of their

special development and trade needs, as well as their stage

of technological development. The TBT Committee can

grant, upon requests specified, time-limited exceptions in

whole or in part from obligations under the TBT Agreement.

When considering such requests, the Committee shall, in

particular, take into account the special problems of the least-

developed country Members(Article 12.8).

When providing advice and technical assistance to

other WTO Members, Members shall give priority to the

needs of the least-developed country Members. (Article 11.8).

Also, in determining the terms and conditions of the techni-

cal assistance, account shall be taken of the stage of devel-

opment of the requesting Members and in particular of the

least-developed country Members.(Article 12.7).

Technical assistance may include: advice on the prepara-

tion of technical regulations (Article 11.1); the establishment

of national standardizing bodies, and participation in the

international standardizing bodies (Article 11.2); the estab-

lishment of conformity assessment bodies (Article 11.3 and

11.4); advise regarding the steps that should be taken by

producers from developing countries if they wish to have

access to systems for conformity assessment operating

within the territory of the importing Member (Article 11.5);

advice regarding the establishment of the institutions and

legal framework which would enable them to fulfil the ob-ligations of membership or participation in international

or regional conformity assessment systems (Article 11.6

and 11.7).

The 2001 Doha Ministerial Decision on Implementation-

related Issues and Concerns (i) urges members to provide,

to the extent possible, the financial and technical assistance

necessary to enable least-developed countries to respond

adequately to the introduction of any new TBT measures

which may have significant negative effects on their trade;

and (ii) urges members to ensure that technical assistance is

provided to least-developed countries with a view to respond-ing to the special problems faced by them in implementing

the Agreement on Technical Barriers to Trade (par 5.4). In

2002, the WTO Secretariat submitted a questionnaire for

a survey to assist developing country Members to identify

and prioritise their specific needs in the TBT field.f

In 2000, the TBT Committee decided that tangible

ways of facilitating developing countries participation in

international standards development should be sought. The

impartiality and openness of any international standard-

ization process requires that developing countries are not

excluded de facto from the process. With respect to improv-

ing participation by developing countries, it may be ap-

propriate to use technical assistance, in line with Article 11 of

the TBT Agreement.g The 2001 Doha Ministerial Decision

on Implementation-related Issues and Concerns urges

the Director-General to continue his cooperative efforts withthese organizations and institutions, including with a view to

according priority to the effective participation of least-devel-

oped countries and facilitating the provision of technical and

financial assistance for this purpose.(par 5.3). International

standard-setting organisations such as the ISO, ITU and IEC

have launched initiatives to enhance developing country

and LDC participation.

f See WTO document G/TBT/W/178, 18 July 2002.

The compilation of responses by the WTO Secretariat is contained in

WTO document G/TBT/W/193, 10 February 2003.g See Development Dimension of the Decision of the Committee on Principles

for the Development of International Standards, Guides and Recommendationswith relation to Articles 2, 5 and Annex 3 of the Agreement, Annex 4 of

WTO document G/TBT/9, 13 November 2000.


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Bangladesh has also faced B measures with regardto export of shrimps to the United States due to lackof compliance with the use of urtle Excluder Devices(ED) in open water fishing.

Government action. In the event of a non-complianceissue, the Government of Bangladesh takes up the dis-pute with the importing country to resolve the dispute

through mutual discussion and also by taking correctivemeasures.

Identification of technical assistance needs5

In 2002, Bangladesh responded to a survey by the WOSecretariat which aimed at assisting developing countryMembers to identify and prioritise their technical as-sistance needs.6 Te country prioritised the followingB-related technical assistance, technical cooperationand capacity building needs:

y echnical Mission by the WO for raising aware-ness about the B and providing training to con-cerned officials with a view to enabling them to fulfilthe requirement of the B Agreement;

y echnical and financial assistance to upgrade theBangladesh Standards and esting Institution (BSI);

y Financial assistance to participate in internationalstandard-setting activities as well as in annual andtriennial reviews of the B Agreement;

y echnical assistance regarding access to systems for

conformity assessment operated by the developedcountries.


Bangladesh has benefited from the technical and finan-cial support of the EU, the United Nations IndustrialDevelopment Organization (UNIDO), and Japan DebtCancellation Fund (JDCF). Projects funded and imple-mented included the following: Quality ManagementSystem and Conformity Assessment Activity for

Bangladesh Quality Support Programme (Post MFA),Market access and trade facilitation support for South

5 See WTO document G/TBT/W/178, Questionnaire for a

survey to assist developing country Members to identify and

prioritise their specific needs in the TBT-field,18 July 2002.

The compilation of responses by the WTO Secretariat is

contained in WTO document G/TBT/W/193, 10 February 2003.

6 The submission of Bangladesh is contained in WTO

document JOB(02)/99/Add.37, 2 October 2002.

Asian least-developed countries, through strengtheninginstitutional and national capacities related to standardsmetrology, testing and quality, Modernization of BSIthrough procurement of sophisticated equipment & infra-structure, Development of Laboratories for accreditation.

Use of Article 12.8 TBT

Bangladesh did not make use of Article 12.8 B.

Additional comments

It was suggested that the country would be better pre-pared to make use of the relevant SD provisions, ifa particular institution, such as the Bangladesh ariffCommission (BC), was entrusted with the responsi-bility to regularly monitor the notifications, and assesshuman resource capacity and steps to be taken in viewof this. In this case, possible modalities could be tostrengthen and build up capacity of an appropriatelytasked and mandated institution to properly deal withB-related issues.

E. Agreement on Trade-Related Investment

Measures (TRIMs)

LDCs were granted a seven-year transitional pe-

riod to phase out measures inconsistent with the TRIMs

Agreement, if they were notified 90 days after the date

of the acceptance of the WTO Agreement (Article 5.1 and

Article 5.2).hThe transition period could be extended, if an

LDC experienced particular difficulties to bring these mea-

sures in conformity with the TRIMs Agreement (Article 5.3).


related Issues and Concerns, urges the Council for Trade

in Goods to consider positively requests that may be made

by least-developed countries under Article 5.3 of the TRIMs

Agreement or Article IX.3 of the WTO Agreement, as well as to

take into consideration the particular circumstances of least-developed countries when setting the terms and conditions

including time-frames(par. 6.2).

Annex F of the Hong Kong Ministerial Declaration i in-

troduced three SDT provisions which will expire by 2020:

First, LDCs were allowed to maintain TRIMs-inconsistent

measures for a (new) period of seven years, if notified by

18 January 2008. Second, this transition period may be


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Country response

Notification of TRIMs inconsistent with theTRIMs Agreement

Bangladesh has never notified the WO of any RIMsinconsistent with the RIMs Agreement.

Introduction of TRIMs inconsistent with the

TRIMs Agreement

Bangladesh did not introduce any new measure deviat-ing from the obligations of the RIMs Agreement.

F. Agreement on Implementation of Article VII

of the GATT 1994 (Customs Valuation)

Country response

Resort to SDT provisions7

Bangladesh delayed the implementation of the Agreemen

on Customs Valuation for five years (Article 20.1)since it was not party to the okyo Round CustomsValuation Code, without notifying the WO. Tecountry did not request an extension of the five-yeardelay period (Annex III, paragraph 1).

Te country also delayed the application of thecomputed value method (Article 20.2). Furthermorethe country made reservations concerning: minimumvalues (Annex III, paragraph 2), reversal of sequentiaorder of Articles 5 and 6 (Annex III, paragraph 3), and

application of Article 5.2 whether or not the importer sorequests (Annex III, paragraph 4).8

7 See WTO document G/VAL/W/77/Rev.1, 15 October 2009,

p. 4-6, for an overview.

8 Bangladesh indicated in the survey that it made a reservation

concerning minimum values (Annex III, paragraph 2).

According to WTO document G/VAL/W/77/Rev.1 (see

previous footnote), Bangladesh has officially not resorted to

Annex III, paragraph 2.

The Agreement on Customs Valuation permitted devel-

oping country Members not party to the Tokyo Round

Customs Valuation Code to delay application of the provi-

sions of this Agreement an initial transitional period of five

years (Article 20.1), which could be extended if requested

and justified (Annex III .1).

Pursuant to Article 20.2, developing country Members

could delay application of the computed value method

for a period not exceeding three years following their

application of all other provisions of this Agreement.

Annex III.2 allowed developing countries which valued

goods on the basis of officially established minimum values

[...] to make a reservation to enable them to retain such values

extended by the Council for Trade in Goods under the

existing procedures set out in the TRIMs Agreement,

taking into account the individual financial, trade, and de-

velopment needs of the Member in question. Third, LDCs

were given the right to introduce new TRIMs-inconsistent

measures for five years, if notified within six months after

their adoption.

h Governments that accepted the WTO Agreement after 1 January 1995 had a

period of 90 days after the date of their acceptance of the WTO Agreement to make

the notifications foreseen in Article 5.1, with the period for the elimination of TRIMs

notified under Article 5.1 being governed by reference to the date of entry into force

of the WTO Agreement itself (i.e. 1 January 1995). See WTO document WT/L/64,

10 April 1995 and G/L/860, 29 October 2008.

i www.wto.org/english/thewto_e/minist_e/min05_e/final_annex_e.htm#annexf

on a limited and transitional basis under such terms and con-

ditions as may be agreed to by the Members.

Annex III.3 allowed developing countries to make a res-

ervation concerning the sequential order of Articles 5 and 6.

Members who made a reservation under Article III.4 are

allowed to use the prices applicable in the importing coun-

tries, whether or not the importer agrees to it.

These two provisions are permanent exceptions

if Members consented to the reservation, in contrast

with the special provisions under Articles 20.1 and 20.2,

Annex III.1 and Annex III.2.j


related Issues and Concerns urges the Council for Trade

in Goods to give positive consideration to requests that

may be made by least-developed country members under

paragraphs 1 and 2 of Annex III of the Customs Valuation

Agreement or under Article IX.3 of the WTO Agreement, as well

as to take into consideration the particular circumstances of

least-developed countries when setting the terms and condi-

tions including time-frames.

j As of 2009, there is no single Member to have benefited from these provisions.


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Article 3:5 (j) of the Agreement on Import Licensing

Procedures provides that in allocating non-automatic

licences, consideration shall also be given to ensuring a

reasonable distribution of licences to new importers. [] In

this regard, special consideration should be given to those im-

porters importing products originating in developing countryMembers and, in particular, the least-developed country

Members.

G. Agreement on Import Licensing Procedures

Country response

Participation in the Committee on Import Licensing

Representatives of Bangladesh have not attended theregular meetings of the Committee on Import Licensing.

Further, the country has not brought any issues regardingthe application of import licenses by another Member tothe attention of the Committee on Import Licensing.

H. Agreement on Subsidies and

Countervailing Measures (ASCM)

Country response

Export subsidies

Export subsidies are provided for 13 items, includinglocal yarn (5%), bicycles (15%), shrimps (12.5%), lightengineering products (10%), leather products (17.5%)ship-building (5%) and jute products (7.5%).

Te exports benefiting from such subsidies havenot been subject to countervailing measures. FurtherBangladesh indicated that none of the products receiv-ing export subsidies achieved export competitivenesswithin the meaning of Article 27.6 of the Agreement.

I. General Agreement on Trade

in Services (GATS)

According to Annex VII to the Agreement on Subsidies

and Countervailing Measures, LDCs are not subject to the

prohibition on export subsidies as set out in Article 3.1(a) ofthat Agreement (Article 27.2(a)). However, their subsidized

exports are potentially liable for countervailing duties (if the

subsidies exceed the de minimisrequirements, Article 27.10).

An LDC loses its exemption on export subsidies for

a product in which it has reached export competitive-

ness, a share of at least 3.25 per cent in world trade for

that product for two consecutive calendar years. Legally,

export competitiveness only exists if the LDC notifies the

WTO or if the WTO Secretariat performs the calculation on

request of another Member (Article 27.6).

LDCs can benefit from a phase-out period of eightyears after reaching export competitiveness (Article 27.5).

In the 2001 Doha Ministerial Decision on Implementation-

related Issues and Concerns, it was decided that the eight-

year period in Article 27.5 within which a least-developed

country Member must phase out its export subsidies in respect

of a product in which it is export-competitive begins from the

date export competitiveness exists within the meaning of

Article 27.6.

The GATS provides that special priority shall be given to theleast-developed country Members in the implementation of

Article IV:1 and IV.2. (Article IV:3).

Article IV:1 states that the increasing participation of de-

veloping country Members in world trade shall be facilitated

through negotiated specific commitments [...] relating to:

(a) the strengthening of their domestic services capacity and

its efficiency and competitiveness, inter alia through access

to technology on a commercial basis; (b) the improvement

of their access to distribution channels and information net-

works; and (c) the liberalization of market access in sectors

and modes of supply of export interest to them.In 2003, Members decided to develop appropriate

mechanisms with a view to achieving full implementation of

Article IV:3 of the GATS and facilitating effective access of LDCs

services and service suppliers to foreign markets. Members

also decided thattargeted and coordinated technical assis-

tance and capacity building programmes shall continue to be

provided to LDCs in order to strengthen their domestic services

capacity, build institutional and human capacity, and enable

them to undertake appropriate regulatory reforms.k

Telecommunications

In the GATS Annex on Telecommunications,lparagraph 6(d),it is agreed thatMembers shall give special consideration to

opportunities for the least-developed countries to encourage

foreign suppliers of telecommunications services to assist in the

transfer of technology, training and other activities that support

the development of their telecommunications infrastructure

and expansion of their telecommunications services trade.

k See WTO document TN/S/13, 5 September 2003, Modalities for the special treat-

ment for Least-Developed Country Members in the negotiations on trade in services.

l http://www.wto.org/english/tratop_e/serv_e/12-tel_e.htm.


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Country response

Extension of transition period

A request for further extension of the transition periodwill perhaps be made in the future as the deadline looms

Information on technical assistance needs to the WTO

Pursuant to paragraph 2 of the Decision of the Councilfor RIPS on the Extension of the transition periodunder article 66.1 of the RIPS Agreement for least-developed country Members, Bangladesh provided in-formation on its individual priority needs for technicaland financial cooperation.9

9 WTO document IP/C/W/546, 23 March2010.

Country response

Priority service sectors in national development policies

Bangladesh reported that no service sector has been pri-oritized in its national development policies.


Te country has not carried out any national assessmentof trade in services. In the last 5 years, Bangladesh didnot receive support from trading partners to increase itsparticipation in world services trade.

Technical assistance in telecommunications services

Since 1995, a number of telecommunication companiesproviding mobile telephone services have been operatingin Bangladesh. In order to raise the efficiency of their em-

ployees and provide quality service, they have providedtraining programmes on a commercial basis. Tese pro-grammes, along with telecom business operations runin the country, have facilitated technology transfer. Teprogrammes were not undertaken to meet any specificcommitment under the WO, but were part of normalbusiness practice, to cater for the human resources needsof multinational companies.

J. Agreement on Trade-Related Aspects of

Intellectual Property Rights (TRIPS)

LDCs were not required to implement the pro-

visions of the TRIPS Agreement, other than

Articles 3, 4 and 5, for a period of 10 years from

1 January 1996 (Articles 65.1 and 66.1). An extension of the

transition period (par. 1) was granted for LCD members for

another 7.5 years, until 1 July 2013.mIn addition, LDCs were

not obliged to provide or enforce patents or exclusive

marketing rights on pharmaceutical products until

1 January 2016.n

Article 67 stipulates that developed country Members

shall provide, on request and on mutually agreed terms and

conditions, technical and financial cooperation in favour of de-

veloping and least-developed country Members. According

to paragraph 2 of the Decision on the Extension of the

Transition Period under Article 66.1 for LDCs, all the LDC

Members will provide to the Council for TRIPS as much in-

formation as possible on their individual priority needs for

technical and financial cooperation in order to get proper

assistance to implement the TRIPS Agreement, preferably

by 1 January 2008. Developed country Members were re-

quested to furnish technical and financial cooperation in

favour of LDCs in order to effectively address these needs.

Under Article 66.2 of the TRIPS Agreement, developed

country Members shall provide incentives to enterprises and

institutions in their territories for the purpose of promotingand encouraging technology transfer to least-developed

country Members in order to enable them to create a sound

and viable technological base.A mechanism for ensuring

the monitoring and full implementation of the obligations

under Article 66.2 was established by the TRIPS Council.o

Paragraph 6 of the Doha Ministerial Declaration on the

TRIPS Agreement and Public Healthp recognized that

WTO Members with insufficient or no manufacturing ca-

pacities in the pharmaceutical sector could face difficulties in

making effective use of compulsory licensing under the TRIPS

Agreement. A waiver of obligations under Article 31(f)of the TRIPS Agreement permits such countries to issue

compulsory licences to suppliers in exporting countries

under specific conditions. It is assumed that LDCs have

insufficient or no manufacturing capacities. Subsequently,

on 6 December 2005, a Protocol amending the TRIPS

Agreement from giving this provision a permanent legal

status was submitted for signature by Members.q

m See WTO document IP/C/40, 30 November 2005.n See WTO document IP/C/25, 1 July 2002.

See WTO document WT/L/478, 12 July 2002.o See WTO document IP/C/28, 28 February 2003, Implementation of Article 66.2

of the TRIPS Agreement.p See WTO document WT/MIN(01)/DEC/2, 20 November 2001.

q See WTO document WT/L/641, 8 December 2005.


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Technical cooperation

Te country has received technical cooperation fromdeveloped country Members to assist in the implemen-tation of the RIPS Agreement. Te European Unionhas supported a project in the Department of Patents,Designs and rademarks, with the objective to intro-duce new laws or modify existing laws in the area of

patent designing, trademarks and geographical indica-tions. Te project also stipulated the training of police,customs officials, lawyers and judges in areas of RIPScompliance.

Use of the Paragraph 6 System10

Te country has accepted the Protocol Amending theRIPS Agreement on 15 March 2011. Bangladesh hasnot yet imported pharmaceutical products producedunder compulsory license.

New patents on pharmaceutical products

Although Bangladesh as an LDC is exempted from RIPSobligations for pharmaceutical products until 2016,patents for pharmaceutical products had been grantedunder Patents and Designs Act No. 11, 1911 until 2006.According to available information, Bangladesh hasrecently discontinued the practice to grant patent onpharmaceutical products.

K. Dispute Settlement

10 http://www.wto.org/english/tratop_e/trips_e/amendment_e.htm

Country response

Participation in WTO dispute settlement

Bangladesh has been involved in two dispute settlementcases, as follows (see Annex able 3).

Bangladesh has never requested the good offices of

the Director General or the Chairman of the DSB.

L. Trade Policy Reviews

Country response

Bangladesh underwent two rade Policy Reviews sincethe establishment of the WO, respectively in 2000 and2006. Its first rade Policy Review (under GA) wascarried out in 1992.

Technical assistance from the WTO Secretariat

Bangladesh took appropriate preparations for the tradepolicy reviews of 2000 and 2006 without having re-

quested technical assistance from the WO.

Article 24 of the Dispute Settlement Understanding

sets out Special Procedures Involving Least-Developed

Country Members under which particular consideration

shall be given to the special situation of LDCs. At all stages

of the determination of the causes of a dispute and of dis-

pute settlement procedures, Members shall exercise due

restraint both in raising matters involving LDCs, and in ask-

ing for compensation or seeking authorization to suspend

concessions or other applicable obligations.

In dispute settlement cases involving an LDC, the

Director-General or the Chairman of the DSB shall, upon

request by a LDC offer their good offices, conciliation and me-

diation with a view to assisting the parties to settle the dispute,

before a request for a panel is made.

The Trade Policy Review Mechanism (TPRM) provides

that smaller trading countries will be reviewed every six

years, except that a longer interval may be fixed for LDCs.

Particular account shall be taken of difficulties presented

to LDCs in compiling their reports. The Secretariat shall

make available technical assistance on request to devel-oping country Members, and in particular to the least

developed country Members.

Trade Policy Review URL

2000 www.wto.org/english/tratop_e/tpr_e/tp132_e.htm

2006 www.wto.org/english/tratop_e/tpr_e/tp269_e.htm


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12

Country response

Bangladesh has not yet submitted any proposal forsupport under the Aid for rade initiative. Howeverefforts have been initiated to identify possible areas andprojects, through the DIS process,11to be subsequentlysubmitted for support under Aid for rade.

N. General recommendations to improve

effectiveness of WTO Special Support

Measures

In many LDCs, there is a lack of capacity to (a) absorbthe technical notifications from the WO, (b) assesstheir implications on offensive as well as defensive inter-ests, (c) take follow-up actions to safeguard the countrysoffensive and defensive interests, and (d) design propos-als for concrete technical, advisory, and financial capac-

ity building support from the WO or developmentapartners. In this regard, there is a need for (a) setting upWO focal points in key ministries, (b) greater inter-ministerial coordination, and (c) building up greatercapacity to (i) articulate and (ii) prepare projects for sup-port, in various agencies and ministries. Enhancing thecapacity of Chambers of Commerce in WO-relatedmatters is also important.

11 A diagnostic trade integration study (DTIS) evaluates internal

and external constraints on a countrys integration into the

world economy. It is the first step for funding under the

Enhanced Integrated Framework (EIF).

M. Enhanced Integrated Framework (EIF)

Bangladesh country profileis posted on the EIF website.

LDCs have highlighted the importance of their own contri-

bution to reducing their supply-side constraints. One of the

main components of the Enhanced Integrated Framework

(EIF) process includes the preparation of a Diagnostic Trade

Integration Study (DTIS) to recognize constraints to trad-

ers, distinguish sectors of greatest export potential, and

identify an action matrix, a plan of action that would allow

a better integration of LDCs into the international trading

system. This would enable LDCs to formulate trade-related

projects and to access Aid for Trade.

Aid for Trade is development assistance targeted at

helping developing countries to take advantage of trade

opportunities. In December 2005, the Sixth Ministerial

Conference in Hong Kong created a new WTO work

programme on Aid for Trade. Ministers directed the WTO

to coordinate its efforts with donors and relevant agencies

to significantly increase aid for trade-related technical assis-tance and capacity building (Annex F of the Hong Kong

Ministerial Declaration).r

r See Aid for Trade.


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13

SECTION II.

SPECIAL SUPPORT MEASURES RELATED TO

PREFERENTIAL MARKET ACCESS

A. Non-reciprocal preference arrangements

of developed countries

Country response

Eligibility and product coverage

Bangladesh is eligible for all Generalised Systems of

Preferences (GSP) schemes maintained by developedcountries. In FY 2009-10, the top three export destina-tions were the European Union (50.7%), the United States(24.4%) and Canada (4.1%). Te Everything But Arms(EBA) scheme of the EU and GSP schemes of a numberof other developed countries such as Canada, Australia,and Japan cover most traded items of Bangladesh.

A major exception is the US GSP. Although the USGSP scheme covers more than 85% of items exportedby LDCs, the scheme does not cover apparels, which areBangladeshs major products exported to the US. Abou5% of Bangladeshs exports to the US market were MostFavored Nation (MFN) zero-duty exports, whilst theGSP scheme covered only about 2% of exports.

Main impediments to fully utilizing preferences

Bangladesh has listed the following constraints to fullyutilize preferences, ranked in descending importanceranging from the highest to the lowest inhibiting factors

For non-tariff measures, please refer to Section I.C

on the SPS Agreement and Section I.D on the BAgreement.

1. Rules of origin

Rules of origins present a significant impediment to thefull utilization of LDC preferences. Bangladeshs majoritem of export is apparel. Bangladeshi apparel firms inthe woven-Ready Made Garment (RMG) segment have

to import a significant quantity of fabrics and are there-fore unable to fully utilize preferences in woven appareldue to two-stage transformation requirements.

For other products, rules of origin present a less sig-nificant barrier. Bangladesh could utilize preferencesin export of knitwear and shrimps to the EU market.Also, among the countries which have been providingduty free access to LDCs, Canada has the most gener-ous rules of origin requirements; Bangladesh could takeadvantage of these preferences.

Over the last 5 years, the country has not receivedtechnical assistance regarding compliance with rulesof origin and related documentary requirements, eitherthrough bilateral or multilateral programmes. Howeverthe EU has recently undertaken a project for introduc-ing a GSP certification system in Bangladesh whichwill improve Bangladeshs administrative capacity with

Non-reciprocal market access preferences entitle export-

ers from LDCs to pay lower tariffs or to have duty- and

quota-free access to third country markets. Many of these

trade preferences are granted under the Generalized

System of Preferences (GSP).

Developed Members, and developing country

Members declaring themselves in a position to do so,

agreed to provide duty-free and quota-free market access

on a lasting basis, for all products originating from all LDCs by

2008 or no later than the start of the implementation period

in a manner that ensures stability, security and predictability.

Members who face difficulties to provide duty-free and

quota-free (DFQF) market access immediately commit

themselves to provide duty-free and quota-free market ac-

cess for at least 97 per cent of products originating from LDCs,

defined at the tariff line level, by 2008 or no later than the start

of the implementation period(Annex F of the 2005 Hong

Kong Ministerial Declaration).

Although LDCs may be granted duty-free treatment

for all or most of their exports to some of their trading

partners, these preferences are far from being fully uti-lized, and many exports eligible for preferential treatment

do not actually receive it, and are eventually submitted to

duties.

1 Rules of origin

2 Supply-side problems

3 Non-tariff measures

4 Lack of awareness of eligibility to preferential treatment

5 Lack of awareness of preferences6 Low preferential margins


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14

regard to rules of origin.

2. Supply-side constraints

Bangladesh mentioned the following major supply con-straints to the countrys exports:

3. Low-preference margins

Bangladeshs major export products are woven and knit

garments, shrimps, leather and leather products, juteand jute products, and fertilizers, all of which constituteabout 95% of its global exports. Among those, wovenand knit garments are covered by GSP schemes of somedeveloped countries, but not by the US GSP scheme.Woven and knit garments are subject to high dutiesin all countries, an average MFN duty of 15%, andtariff peaks pose formidable challenge to Bangladeshiexporters.

Te following major export products have low-preference margins:

4. Security of access

Te country considered that the lack of security of preferential access acted as a deterrent to export-orientedinvestment. A good example of that was the petitionfiled by a sleeping bag manufacturer in the United Staterequiring the withdrawal of GSP facilities on sleepingbags. Te Government of Bangladesh as well as otheBangladeshi stakeholders sent their written submissionon the petition when the Office of United States rade

Representative (USR) initiated the review. Te requeswas eventually denied by the USR.

Duty-free and quota-free (DFQF) access grantedwithin the framework of the WO seems to be morpredictable and secure. Te WO DFQF market accesinitiative stipulates DFQF treatment to all LDC itemson a lasting basis. Other related provisions of the WO(on rules of origin) also mention LDC-friendly rules oorigin. Terefore, a universal and comprehensive DFQFtreatment, as stipulated in the Hong Kong Ministeria

Declaration, is a preferred option.

B. Non-reciprocal preference arrangements

of developing countries

Supply-side constraints

inhibiting exports

Products affected

Physical infrastructure All sectors

Human resources All sectors, particularly thoserequiring skilled workers

High cost of capital All sectors

Capacity constraints in complyingwith SPS and B standards ofimporting countries

All sectors

Border infrastructure All sectors

Importing

market

Product Duty

United States Shrimps, jute and juteproducts, fertilizers

MFN duty-free

European Union Jute and jute products,leather, fertilizers

MFN duty-freeor low-duty

Canada Shrimps, fertilizers, leather,jute and jute products(excluding jute bags)

MFN duty-free

Japan Jute and jute products(excluding jute fabrics) MFN duty-free

Japan Shrimps Very low-duty(lower than 5%)

Under Annex F of the Hong Kong Ministerial Declaration,

developing countries declaring themselves in a position

to do so, agreed to follow suit in providing duty-free andquota-free (DFQF) treatment to LDC products.s

The Global System of Trade Preferences among

Developing Countries (GSTP) is a preferential trade

agreement signed on 13 April 1988, aiming at increasing

trade between developing countries in the framework of

UNCTAD. Pursuant to Article 17.3 of the GSTP Agreement,

LDCs shall not be required to make concessions on a recip-

rocal basis, and such participating least-developed country

shall benefit from the extension of all tariff, para-tariff and

non-tariff concessions exchanged in the bilateral/plurilateral

negotiations which are multilateralized.t

s Members who face difficulties to provide DFQF market access immediately

commit themselves to provide duty-free and quota-free market access for at least

97 per cent of products originating from LDCs, defined at the tariff line level, by

2008 or no later than the start of the implementation period

(Annex F of the 2005 Hong Kong Ministerial Declaration).

t http://www.unctadxi.org/gstp


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Country response

Eligibility and product coverage

Bangladesh indicated eligibility for the preferenceschemes of the following countries:

y Republic of Korea, with Rules of Origin requirement

of 50% value addition;y China, with Rules of Origin requirement of 40%

value addition or Change of ariff Heading (CH);

y India, with Rules of Origin requirement of 30%value addition, plus CH (DFQF within five years);

y Brazil has granted Bangladesh DFQF access cover-ing 80% of all tariff lines, to be increased to 100%by 2012 under the WO DFQF treatment.

Major product exclusions reported by Bangladesh arelisted in Annex able 4.

Main impediments to fully utilizing preferences

Te main impediments to utilizing preferences inschemes made available by developing countries primar-ily relate to product coverage and rules of origin:

y For Bangladesh, the Duty Free and ariff Preferencescheme (DFP) offered by India in 2008 is lessattractive than tariff concessions granted by Indiaunder the South Asian Free rade Agreement(SAFA), both in terms of coverage and extensionof tariff concessions. While all products covered un-der DFP Scheme are duty-free since January 2008under the SAFA, these are yet to be made duty-freeunder the DFP scheme.

y Te Republic of Korea introduced the duty-freescheme for LDCs on 1 January 2008 and productcoverage was further extended first in January 2009,then in January 2010. Te coverage of the duty-freescheme accorded by the Republic of Korea to itsimports from Bangladesh is not significant. Rules

of origin require 50% value addition. Terefore, itwill not be easy for Bangladesh to benefit from thisparticular scheme.

y Te duty-free scheme granted by China has comeinto effect only on 1 July 2010. Terefore, it is tooearly to make an assessment of its effectiveness.

Generalized System of Trade Preferences (GSTP)

Bangladesh enjoys tariff preferences granted for LDCsunder the Global System of rade Preferences (GSP)However, Bangladesh is not participating in the on-going third round of trade negotiations under the GSP

C. Reciprocal trade arrangements

Country response

Benefits of Reciprocal trade agreements (RTAs)

Te government considered that being a party to recip-rocal trade agreements has provided additional benefitsover those enjoyed from LDC status under the WO(see Annex able 5).

y SAFTA: India is currently providing duty-free access

to a majority of export products from Bangladeshunder the South Asian Free rade Agreement(SAFA), which do not benefit from such a treat-ment under Indias DFP scheme for LDCs.

y APTA: Te global initiative of the Republic of Koreahas been so far less lucrative than the preferences

Every LDC WTO Member is a party to at least one Free

Trade Agreement (FTA), customs union or limited prefer-

ential agreement. Such agreements, when entered into

with other developing countries, often provide LDCs with

preferential access to markets that they would otherwise

not receive.

In FTAs with developed countries, which are commit-

ted to grant DFQF treatment, additional benefits can be

provided by improvements in rules of origin or greateraccess to financial and technical assistance to overcome

Non-Tariff Measures (NTMs) such as SPS. On the other hand,

membership in these Agreements may require LDCs to

make reciprocal concessions which they are not required

to make in the WTO or even accept more stringent disci-

plines on other trade issues (so-called WTO plus). LDCs

could also face higher duties than their competitors when

they do not sign FTAs with major export markets.u

u See Strengthening International Support Measures for the Least Developed

Countries, Policy Note, Committee for Development Policy, p. 9.


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16

granted under the Asia Pacific rade Agreement(APA), as APA covers many items of export in-terest to Bangladesh.

y BIMSTEC: Bangladesh also receives additionalmarket access under the BIMSEC-FA fromTailand. BIMSEC stands for Bay of BengalInitiative for Multi-Sectoral echnical and EconomicCooperation.12

Important export products from Bangladesh facehigher tariffs than those of competitors in main marketsdue to FAs, customs unions or other limited preferen-tial schemes.

D. Recommendations to improve

international support measures related to

preferential market access

Te following suggestions were provided:y Product coverage of DFQF. In order to improve

preferential market access, coverage of such accessshould be widened by extending DFQF marketaccess to all products from all LDCs, on a lasting,secured and predictable basis, in line with the HongKong Ministerial Decision of the WO.

12 http://www.bimstec.org/about_bimstec.html

y Rules of origin. Rules of origin should be formulatedin such a way so that countries eligible for preferen-tial treatment can effectively take advantage of suchpreferences.

y Supply-side constraints and export diversificationOne of the major concerns relate to supply-side con-straints. Greater international support in buildingsupply-side capacities towards export diversificationis key to realising the potential benefits of preferentiamarket access. Besides, initiatives towards encourag-ing Foreign Direct Investment (FDI) in LDCs fromdeveloped and developing countries (through addi-tional incentives for these countries), more energeticsupport for capacity-building in SPS-B areas, andtechnology transfer could enable LDCs to improvetheir supply-side capacities. Te WO Agreementon rade Facilitation also stipulates that necessarysupport will be accorded to LDCs in identified areas

of capacity needs. Te support envisaged under theAid for rade initiative should also be expedited andenhanced.


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ANNEX

Table 1: Food aid and project aid in agriculture received by Bangladesh after 1995

US$ million

Period (FY = financial year) Food aid Project aid in agriculture otal

FY 1990/91 FY 1994/95 882.1 363.5 1 245.6

FY 1995/96 FY1999/00 304.1 651.1 955.2FY 2000/01 FY 2004/05 198.6 278.1 476.7

Source: Bangladesh Ministry of Finance, External Relations Division

Table 2: Non-compliance with SPS measures of importing Members

Export product Importing partner Grounds for rejection

Shrimps European Union Import ban after EU inspections of Bangladeshs seafood processing plants whichfound serious deficiencies in infrastructure and hygiene conditions in processingestablishments and lax quality control by Bangladesh government inspectors

Hilsa fish India Mandatory testing requirement of each and every consignment of all processed

food and sanitary permit requirement for import of hilsa fish

Table 3: Bangladesh, participation in WTO dispute settlement

Case number Case name Capacity Initiation date

DS243 United States of America Rules of Origin forextiles and Apparel Products

third party 11 January 2002

DS306 India Anti-Dumping Measure on Batteries fromBangladesh

complainant 28 January 2004

Table 4: Bangladesh major product exclusions

US$ million

Importing country Product excluded Value of exportsValue of exports as percentage of

total exports to country concerned

Republic of Korea Shrimps, leather, petroleum by-products 84.7 69.5

China No major export items 11.0 8.3

India Betel nuts, garments 22.7 8.0

Brazil Information not available

Table 5: Bangladesh Benefits of RTAs

Benefit(s)South Asian Free rade Agreement

(SAFA)Asia Pacific rade Agreement

(APA)

Greater security of access X X

Preferential treatment that would not otherwise beavailable X X

Wider product coverage X

More flexible rules of origin X X

Provisions for dealing more effectively with NMs

Additional technical and financial assistance X X

summary results bangladesh

Documents