1

J. Agreement on Trade-Related Aspects of

Intellectual Property Rights (TRIPS)......... 10
K. Dispute Settlement.................................... 11
L. Trade Policy Reviews................................. 11
M. Enhanced Integrated Framework (EIF)...... 12
N. General recommendations to improve
effectiveness of WTO Special Support
Measures................................................... 12
SECTION II. SPECIAL SUPPORT MEASURES RELATED TO
PREFERENTIAL MARKET ACCESS
A. Non-reciprocal preference arrangements of
developed countries................................... 13
B. Non-reciprocal preference arrangements of
developing countries.................................. 14
C. Reciprocal trade arrangements................... 15
D. Recommendations to improve international
support measures related to preferential
market access............................................. 16
Survey on International Support Measures specific to the
Least Developed Countries (LDCs)
related to WTO Provisions and Preferential Market Access
Bangladesh
Summary Results
prepared by the United Nations Department of Economic and Social
Affairs (DESA)
and the Committee for Development Policy (CDP) Secretariat*
Table of Contents
SECTION I. SPECIAL SUPPORT MEASURES UNDER THE WTO
A. Compliance with the WTO Agreements.... 2
B. Agreement on Agriculture (AoA)............... 3
C. Agreement on the Application of Sanitary
and Phytosanitary Measures (SPS)............. 4
D. Agreement on Technical Barriers to
Trade (TBT)............................................. 6
E. Agreement on Trade-Related Investment
Measures (TRIMs).................................... 7
F. Agreement on Implementation of
Article VII of the GATT 1994
(Customs Valuation).................................. 8
G. Agreement on Import Licensing Procedures 9
H. Agreement on Subsidies and Countervailing
Measures (ASCM)..................................... 9
I. General Agreement on Trade in Services
(GATS)..................................................... 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
2
SECTION I.
SPECIAL SUPPORT MEASURES UNDER THE WTO
A. Compliance with the WTO Agreements
Country response
Bangladesh had to undertake various obligations under
the Uruguay Round Agreements, covering commitments
on market access, subsidies, and the enactment of national
rules and regulations, or the modification of existing
national rules and regulations as per provisions of the
various WTO Agreements.
Market-access commitments were aimed at tariff
bindings at the ceiling level of 200% on agricultural
products, and of 50% on 13 other agriculture products
and 31 industrial products. Besides, Bangladesh also
bound other duties and charges (Article II.2b GATT)
at 2.5% for all products and undertook the commitment
to 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 agriculture
production, (b) prohibiting the introduction of any
export subsidies in agriculture; and (c) withdrawal of
subsidies or support mesaures contingent upon the use of
domestic over imported goods by 2003.
Other requirements included obligations relating to
introducing the GATT valuation system, national antidumping
laws and regulations, and countervailing and
safeguard measures.
Bangladesh reported that it was in a position to comply
with market-access committments in most of the
cases, but faced great difficulties in terms of complying
with some other obligations. For example, despite having
enacted laws and regulations in accordance with the
WTO agreements, the implementation of such rules was
challenging, owing to the lack of information required
to take action under these rules.
Pursuant to the Understanding on the Balance-ofpayments
Provisions of the GATT 1994, Bangladesh
was scheduled to withdraw quantitative restrictions on
imports for 17 categories of products that were being
maintained on balance of payments grounds, by 2005.
However, as a WTO Member, Bangladesh resorted to
GATT Article XVIII:C as a reason to enforce import
restrictions on 5 of these categories beyond 2005, due
to their importance in terms of employment generation.
The country was not allowed to invoke Article XVIII:C,
but Members agreed that Bangladesh maintained restrictions,
until 2009, on the 4 following products: carton,
poultry, eggs, and salt. Bangladesh has already withdrawn
the quantitative restrictions as per its commitment.
In addition, Bangladesh, along with other LDCs, requested
an extension of the time frame for complying with
TRIPS and TRIMs obligations. An extension of the transitional
period for implementing the TRIPS Agreement
until 2016 for pharmaceutical products and July 1 2013
for other products was granted to LDCs as a group of
members. LDCs have also been allowed to maintain existing
TRIMs and introduce new measures until 2020.
Bangladesh anticipated difficulties in ensuring compliance
with the WTO obligations, such as provisions related
to subsidies, compliance with SPS and TBT Agreements,
TRIMS, TRIPS etc. Bangladesh has put in place various
rules and regulations pertaining to SPS and TBT measures.
However, faced with complaints over compliance,
Bangladesh may be unable to justify its scientific rationale,
due to inadequate human resources and skills.
There are some instances and indications of products
beings dumped into Bangladesh market. But the private
sectors lack of capacity to furnish evidence on the existence
of such dumping practices, and on the alleged injury
caused to the domestic industry by such dumping,
which are two prerequisites for initiating any investigation,
does not permit any investigation with respect to
antidumping and countervailing procedures.
Recognizing that the LDCs may face difficulty in meeting
the rules set out by the WTO, the Decision on Measures
in Favour of Least-developed Countriesa had foreseen the
need to ensure their effective participation in the world
trading system and to improve their trading opportunities.
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 implemented
expeditiously and subject to regular reviews.
a Annexed to the Final Act of the Uruguay Round.
3
.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 process
through 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 exemption
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 when
they became WTO Members, this provision does not represent
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 Importers
The 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 increasing
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 assistance
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 agricultural
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 reduction
commitment; when the country became a WTO
Member, its Aggregate Measurement of Support
(AMS) was at about 2-3% of agricultural GDP, way
below the permissible threshold of 10% of agricultural
production (de minimis). The country has not so far
provided any agricultural export subsidies.
Bangladesh offers domestic support in the form of
subsidies (input and output subsidies, for example, subsidized
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 country
reported that inflows in food aids have gradually decreased
in volume in recent years (see Annex Table 1).
All food aid received by Bangladesh has been in
grant form since 1985. Major donors include Australia,
Canada, Germany, Japan, the United States and
Saudi Arabia. (Source: External Resources Division of
Bangladesh).
Technical assistance. Various bilateral and multilateral
organizations have provided technical and financial assistance
to enhance agricultural output, productivity,
crop diversification and strengthening of Research and
Development (R&D) capacity.
Additional comments
Bangladesh mentioned that SDT provisions available to
agriculture have been of very limited use. The country
gave examples in the following areas:
Market access. In the Uruguay Round, all countries,
including LDCs, had to withdraw all quantitative restrictions
and bind duties on all agricultural products.
No SDT provision was available with this respect. While
Bangladesh, 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.
4
reduction commitments, this flexibility was offset by the
tariff liberalization process initiated by Bangladesh under
structural adjustment programmes, as part of World
Bank aid conditionalities in the early 1990s.
Domestic support. Bangladesh provided amber box
support to agriculture at the WTOs establishment.
However, the amount allocated for this support was
below 10% of the total value of agriculture production;
hence, Bangladesh was not required to make any
reduction commitment through taking advantage of
the relevant SDT provision. Therefore, the SDT provision
relating to exemption from reducing amber box
subsidies has not been of any benefit to Bangladesh. As
a matter of fact, 34 countries had to make reduction
commitments, their trade-distorting domestic supports
exceeding 5% (for developed countries) and 10% (in the
case of developing countries) of the total value of their
agricultural production.
Export subsidies. At the WTOs creation, only 25 countries
provided exports subsidies, and were required, as
such, to undertake reduction commitment. No LDC
was included in this list. Since Bangladesh did not provide
any agricultural export subsidies, it could not use
SDT in export subsidies.
Food aid and technical assistance in agriculture. As
indicated earlier, food aid and agricultural project loan
inflow 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 remarkably
well in recent times, with the country gradually
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 order
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 importing
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 utilized
this procedure.
Under Article 10.4, Members should encourage and facilitate
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 standard-
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, sanitary
or phytosanitary measures necessary to achieve the appropriate
level of sanitary or phytosanitary protection in their
export markets. The 2001 Doha Ministerial Decision on
Implementation-related Issues and Concerns urges members
to ensure that technical assistance is provided to leastdeveloped
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 countries
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/33 and 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 the
operation and implementation of the SPS Agreement Background
document, par. 26.
e http://www.standardsfacility.org/
5
Country response
Participation in standard-setting organizations2
Bangladesh indicated that it did not have any representative
in meetings of the World Organization for Animal
Health (OIE) or the International Plant Protection
Convention (IPPC), but that national delegations were
present at meetings of the Codex Alimentarius. The country
is a member of these three standard-setting bodies.
Participation in the SPS Committee
Capital-based officials have had the opportunity to attend
some of the regular meetings of the SPS Committee.
Non-compliance with SPS measures of importing Members
Bangladesh experienced difficulties in meeting the SPS
requirements of importing countries for some of its exports
(see Annex Table 2):
Government action. Generally, exporters facing problems
in meeting SPS requirements applied by importing
countries bring their case to the attention of the
Government. The Government then takes the initiative
to resolve the problem through bilateral discussions with
the government of the country concerned, and undertakes
corrective measures.
In the case of shrimps, the European Union (EU)
imposed an import ban in 1997, which was later lifted
by the EU authorities. In 2009, the EU rejected entry for
at least 50 container loads of shrimps in which the presence
of the banned antibiotic nitrofuran was detected.
These incidents led Bangladeshi exporters to maintain
an eight month voluntary export restraint on fresh
water shrimps as of May 2009. On 12 July 2010, the EU
adopted a decision aimed at testing 20% of all shrimps
consignments exported by Bangladesh into the Union,
and introduced a new mandatory testing requirement,
with a view to detecting the presence of oxytetracycline
and 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 monitor
SPS measures notified to the WTO and evaluate their
impact on trade. For this reason, Bangladesh does not
notify the WTO when it faces potential difficulties with
proposed SPS regulations by importing Members.
Technical assistance
In 1997, the EU provided financial and technical assistance
to help Bangladesh comply with Hazard Analysis
Critical Control Point (HACCP) requirements, a
food safety management system. In the last five years,
Bangladesh has received technical and financial assistance
from the EU and UNIDO under the project
titled Bangladesh Quality Support programme. The
program has focused on raising awareness and building
capacity within the private sector to meet the standards,
conformity assessment, and packaging requirements of
export markets in a competitive manner.
Bangladesh has also received some assistance from the
Indian Government to strengthen the capacity of the
Bangladesh Standards and Technical Institute (BSTI).
STDF Assistance3
The Government of Bangladesh is yet to receive any support
from the STDF, which will be considered after the
completion of the Diagnostic Trade Integration Study
(DTIS) under the Enhanced Integrated Framework
(EIF). The World Bank has been entrusted with the
DTIS and is currently engaged in the study.
Additional comments
The main reasons for not appropriately taking advantage
of the SDT provisions under the SPS Agreement are related
to inadequate human resources within the government
dealing with WTO issues, and the lack of proper
coordination among the various ministries monitoring
the WTO Agreements and implementing SPS measures.
3 See WTO document G/SPS/GEN/1029, 23 June 2010, for an
overview of STDF projects.
6
Country response
Participation in the TBT Committee
Representatives of Bangladesh rarely participate in meetings
of the TBT Committee. Between 1995 and 2010,
the country did not make any notification to the TBT
Committee.4
There is lack of capacity to regularly examine TBTrelated
notifications both within the government and in
the private sector. As a result, Bangladesh has not been
able to assess trade impact of the TBT measures and put
on record its Specific Trade Concerns regarding technical
regulations and standards.
Non-compliance with technical regulations or standards
of importing Members
Some consignments of Bangladesh major export products,
such as leather, knitwear, woven garments and
pharmaceuticals were rejected for lack of compliance
with technical regulation and packaging requirements
in 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 leastdeveloped
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 technical
assistance, account shall be taken of the stage of development
of the requesting Members and in particular of the
least-developed country Members. (Article 12.7).
Technical assistance may include: advice on the preparation
of technical regulations (Article 11.1); the establishment
of national standardizing bodies, and participation in the
international standardizing bodies (Article 11.2); the establishment
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 obligations
of membership or participation in international
or regional conformity assessment systems (Article 11.6
and 11.7).
The 2001 Doha Ministerial Decision on Implementationrelated
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 responding
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 standardization
process requires that developing countries are not
excluded de facto from the process. With respect to improving
participation by developing countries, it may be appropriate
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 with
these organizations and institutions, 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 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 Recommendations
with relation to Articles 2, 5 and Annex 3 of the Agreement, Annex 4 of
WTO document G/TBT/9, 13 November 2000.
7
Bangladesh has also faced TBT measures with regard
to export of shrimps to the United States due to lack
of compliance with the use of Turtle Excluder Devices
(TED) in open water fishing.
Government action. In the event of a non-compliance
issue, the Government of Bangladesh takes up the dispute
with the importing country to resolve the dispute
through mutual discussion and also by taking corrective
measures.
Identification of technical assistance needs5
In 2002, Bangladesh responded to a survey by the WTO
Secretariat which aimed at assisting developing country
Members to identify and prioritise their technical assistance
needs.6 The country prioritised the following
TBT-related technical assistance, technical cooperation
and capacity building needs:
yy Technical Mission by the WTO for raising awareness
about the TBT and providing training to concerned
officials with a view to enabling them to fulfil
the requirement of the TBT Agreement;
yy Technical and financial assistance to upgrade the
Bangladesh Standards and Testing Institution (BSTI);
yy Financial assistance to participate in international
standard-setting activities as well as in annual and
triennial reviews of the TBT Agreement;
yy Technical assistance regarding access to systems for
conformity assessment operated by the developed
countries.
Technical assistance
Bangladesh has benefited from the technical and financial
support of the EU, the United Nations Industrial
Development Organization (UNIDO), and Japan Debt
Cancellation Fund (JDCF). Projects funded and implemented
included the following: Quality Management
System 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 strengthening
institutional and national capacities related to standards,
metrology, testing and quality, Modernization of BSTI
through procurement of sophisticated equipment & infrastructure,
Development of Laboratories for accreditation.
Use of Article 12.8 TBT
Bangladesh did not make use of Article 12.8 TBT.
Additional comments
It was suggested that the country would be better prepared
to make use of the relevant SDT provisions, if
a particular institution, such as the Bangladesh Tariff
Commission (BTC), was entrusted with the responsibility
to regularly monitor the notifications, and assess
human resource capacity and steps to be taken in view
of this. In this case, possible modalities could be to
strengthen and build up capacity of an appropriately
tasked and mandated institution to properly deal with
TBT-related issues.
E. Agreement on Trade-Related Investment
Measures (TRIMs)
LDCs were granted a seven-year transitional period
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).h The transition period could be extended, if an
LDC experienced particular difficulties to bring these measures
in conformity with the TRIMs Agreement (Article 5.3).
The 2001 Doha Ministerial Decision on Implementationrelated
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 leastdeveloped
countries when setting the terms and conditions
including time-frames (par. 6.2).
Annex F of the Hong Kong Ministerial Declarationi introduced
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
8
Country response
Notification of TRIMs inconsistent with the
TRIMs Agreement
Bangladesh has never notified the WTO of any TRIMs
inconsistent with the TRIMs Agreement.
Introduction of TRIMs inconsistent with the
TRIMs Agreement
Bangladesh did not introduce any new measure deviating
from the obligations of the TRIMs 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 Agreement
on Customs Valuation for five years (Article 20.1)
since it was not party to the Tokyo Round Customs
Valuation Code, without notifying the WTO. The
country did not request an extension of the five-year
delay period (Annex III, paragraph 1).
The country also delayed the application of the
computed value method (Article 20.2). Furthermore,
the country made reservations concerning: minimum
values (Annex III, paragraph 2), reversal of sequential
order of Articles 5 and 6 (Annex III, paragraph 3), and
application of Article 5.2 whether or not the importer so
requests (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 developing
country Members not party to the Tokyo Round
Customs Valuation Code to delay application of the provisions
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 development
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 conditions
as may be agreed to by the Members.
Annex III.3 allowed developing countries to make a reservation
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 countries,
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
The 2001 Doha Ministerial Decision on Implementationrelated
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 conditions
including time-frames.
j As of 2009, there is no single Member to have benefited from these provisions.
9
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 importers
importing products originating in developing country
Members 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 the
regular meetings of the Committee on Import Licensing.
Further, the country has not brought any issues regarding
the application of import licenses by another Member to
the 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, including
local yarn (5%), bicycles (15%), shrimps (12.5%), light
engineering products (10%), leather products (17.5%),
ship-building (5%) and jute products (7.5%).
The exports benefiting from such subsidies have
not been subject to countervailing measures. Further,
Bangladesh indicated that none of the products receiving
export subsidies achieved export competitiveness
within 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) of
that Agreement (Article 27.2(a)). However, their subsidized
exports are potentially liable for countervailing duties (if the
subsidies exceed the de minimis requirements, Article 27.10).
An LDC loses its exemption on export subsidies for
a product in which it has reached export competitiveness,
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 eight
years after reaching export competitiveness (Article 27.5).
In the 2001 Doha Ministerial Decision on Implementationrelated
Issues and Concerns, it was decided that the eightyear
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 the
least-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 developing
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 networks;
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 that targeted and coordinated technical assistance
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,l paragraph 6(d),
it is agreed that Members 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 treatment
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.
10
Country response
Extension of transition period
A request for further extension of the transition period
will 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 Council
for TRIPS on the Extension of the transition period
under article 66.1 of the TRIPS Agreement for leastdeveloped
country Members, Bangladesh provided information
on its individual priority needs for technical
and financial cooperation.9
9 WTO document IP/C/W/546, 23 March 2010.
Country response
Priority service sectors in national development policies
Bangladesh reported that no service sector has been prioritized
in its national development policies.
Technical assistance
The country has not carried out any national assessment
of trade in services. In the last 5 years, Bangladesh did
not receive support from trading partners to increase its
participation in world services trade.
Technical assistance in telecommunications services
Since 1995, a number of telecommunication companies
providing mobile telephone services have been operating
in Bangladesh. In order to raise the efficiency of their employees
and provide quality service, they have provided
training programmes on a commercial basis. These programmes,
along with telecom business operations run
in the country, have facilitated technology transfer. The
programmes were not undertaken to meet any specific
commitment under the WTO, but were part of normal
business practice, to cater for the human resources needs
of multinational companies.
J. Agreement on Trade-Related Aspects of
Intellectual Property Rights (TRIPS)
LDCs were not required to implement the provisions
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.m In 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 developing
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 information
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 requested
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 promoting
and 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 capacities
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.
11
Technical cooperation
The country has received technical cooperation from
developed country Members to assist in the implementation
of the TRIPS Agreement. The European Union
has supported a project in the Department of Patents,
Designs and Trademarks, with the objective to introduce
new laws or modify existing laws in the area of
patent designing, trademarks and geographical indications.
The project also stipulated the training of police,
customs officials, lawyers and judges in areas of TRIPS
compliance.
Use of the Paragraph 6 System10
The country has accepted the Protocol Amending the
TRIPS Agreement on 15 March 2011. Bangladesh has
not yet imported pharmaceutical products produced
under compulsory license.
New patents on pharmaceutical products
Although Bangladesh as an LDC is exempted from TRIPS
obligations for pharmaceutical products until 2016,
patents for pharmaceutical products had been granted
under Patents and Designs Act No. 11, 1911 until 2006.
According to available information, Bangladesh has
recently discontinued the practice to grant patent on
pharmaceutical 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 settlement
cases, as follows (see Annex Table 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 Trade Policy Reviews since
the establishment of the WTO, respectively in 2000 and
2006. Its first Trade Policy Review (under GATT) was
carried out in 1992.
Technical assistance from the WTO Secretariat
Bangladesh took appropriate preparations for the trade
policy reviews of 2000 and 2006 without having requested
technical assistance from the WTO.
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 dispute
settlement procedures, Members shall exercise due
restraint both in raising matters involving LDCs, and in asking
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 mediation
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 developing
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
12
Country response
Bangladesh has not yet submitted any proposal for
support under the Aid for Trade initiative. However,
efforts have been initiated to identify possible areas and
projects, through the DTIS process,11 to be subsequently
submitted for support under Aid for Trade.
N. General recommendations to improve
effectiveness of WTO Special Support
Measures
In many LDCs, there is a lack of capacity to (a) absorb
the technical notifications from the WTO, (b) assess
their implications on offensive as well as defensive interests,
(c) take follow-up actions to safeguard the countrys
offensive and defensive interests, and (d) design proposals
for concrete technical, advisory, and financial capacity
building support from the WTO or developmental
partners. In this regard, there is a need for (a) setting up
WTO focal points in key ministries, (b) greater interministerial
coordination, and (c) building up greater
capacity to (i) articulate and (ii) prepare projects for support,
in various agencies and ministries. Enhancing the
capacity of Chambers of Commerce in WTO-related
matters 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 profile is posted on the EIF website.
LDCs have highlighted the importance of their own contribution
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 traders,
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 assistance
and capacity building (Annex F of the Hong Kong
Ministerial Declaration).r
r See Aid for Trade.
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 developed
countries. In FY 2009-10, the top three export destinations
were the European Union (50.7%), the United States
(24.4%) and Canada (4.1%). The Everything But Arms
(EBA) scheme of the EU and GSP schemes of a number
of other developed countries such as Canada, Australia,
and Japan cover most traded items of Bangladesh.
A major exception is the US GSP. Although the US
GSP scheme covers more than 85% of items exported
by LDCs, the scheme does not cover apparels, which are
Bangladeshs major products exported to the US. About
5% of Bangladeshs exports to the US market were Most
Favored Nation (MFN) zero-duty exports, whilst the
GSP scheme covered only about 2% of exports.
Main impediments to fully utilizing preferences
Bangladesh has listed the following constraints to fully
utilize preferences, ranked in descending importance,
ranging 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 TBT
Agreement.
1. Rules of origin
Rules of origins present a significant impediment to the
full utilization of LDC preferences. Bangladeshs major
item of export is apparel. Bangladeshi apparel firms in
the woven-Ready Made Garment (RMG) segment have
to import a significant quantity of fabrics and are therefore
unable to fully utilize preferences in woven apparel
due to two-stage transformation requirements.
For other products, rules of origin present a less significant
barrier. Bangladesh could utilize preferences
in export of knitwear and shrimps to the EU market.
Also, among the countries which have been providing
duty free access to LDCs, Canada has the most generous
rules of origin requirements; Bangladesh could take
advantage of these preferences.
Over the last 5 years, the country has not received
technical assistance regarding compliance with rules
of origin and related documentary requirements, either
through bilateral or multilateral programmes. However,
the EU has recently undertaken a project for introducing
a GSP certification system in Bangladesh which
will improve Bangladeshs administrative capacity with
Non-reciprocal market access preferences entitle exporters
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 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).
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 utilized,
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 preferences
6 Low preferential margins
14
regard to rules of origin.
2. Supply-side constraints
Bangladesh mentioned the following major supply constraints
to the countrys exports:
3. Low-preference margins
Bangladeshs major export products are woven and knit
garments, shrimps, leather and leather products, jute
and jute products, and fertilizers, all of which constitute
about 95% of its global exports. Among those, woven
and knit garments are covered by GSP schemes of some
developed countries, but not by the US GSP scheme.
Woven and knit garments are subject to high duties
in all countries, an average MFN duty of 15%, and
tariff peaks pose formidable challenge to Bangladeshi
exporters.
The following major export products have lowpreference
margins:
4. Security of access
The country considered that the lack of security of preferential
access acted as a deterrent to export-oriented
investment. A good example of that was the petition
filed by a sleeping bag manufacturer in the United States
requiring the withdrawal of GSP facilities on sleeping
bags. The Government of Bangladesh as well as other
Bangladeshi stakeholders sent their written submissions
on the petition when the Office of United States Trade
Representative (USTR) initiated the review. The request
was eventually denied by the USTR.
Duty-free and quota-free (DFQF) access granted
within the framework of the WTO seems to be more
predictable and secure. The WTO DFQF market access
initiative stipulates DFQF treatment to all LDC items,
on a lasting basis. Other related provisions of the WTO
(on rules of origin) also mention LDC-friendly rules of
origin. Therefore, a universal and comprehensive DFQF
treatment, as stipulated in the Hong Kong Ministerial
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 those
requiring skilled workers
High cost of capital All sectors
Capacity constraints in complying
with SPS and TBT standards of
importing countries
All sectors
Border infrastructure All sectors
Importing
market
Product Duty
United States Shrimps, jute and jute
products, fertilizers
MFN duty-free
European Union Jute and jute products,
leather, fertilizers
MFN duty-free
or 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 and
quota-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 reciprocal
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
15
Country response
Eligibility and product coverage
Bangladesh indicated eligibility for the preference
schemes of the following countries:
yy Republic of Korea, with Rules of Origin requirement
of 50% value addition;
yy China, with Rules of Origin requirement of 40%
value addition or Change of Tariff Heading (CTH);
yy India, with Rules of Origin requirement of 30%
value addition, plus CTH (DFQF within five years);
yy Brazil has granted Bangladesh DFQF access covering
80% of all tariff lines, to be increased to 100%
by 2012 under the WTO DFQF treatment.
Major product exclusions reported by Bangladesh are
listed in Annex Table 4.
Main impediments to fully utilizing preferences
The main impediments to utilizing preferences in
schemes made available by developing countries primarily
relate to product coverage and rules of origin:
yy For Bangladesh, the Duty Free and Tariff Preference
scheme (DFTP) offered by India in 2008 is less
attractive than tariff concessions granted by India
under the South Asian Free Trade Agreement
(SAFTA), both in terms of coverage and extension
of tariff concessions. While all products covered under
DFTP Scheme are duty-free since January 2008
under the SAFTA, these are yet to be made duty-free
under the DFTP scheme.
yy The Republic of Korea introduced the duty-free
scheme for LDCs on 1 January 2008 and product
coverage was further extended first in January 2009,
then in January 2010. The coverage of the duty-free
scheme accorded by the Republic of Korea to its
imports from Bangladesh is not significant. Rules
of origin require 50% value addition. Therefore, it
will not be easy for Bangladesh to benefit from this
particular scheme.
yy The duty-free scheme granted by China has come
into effect only on 1 July 2010. Therefore, it is too
early to make an assessment of its effectiveness.
Generalized System of Trade Preferences (GSTP)
Bangladesh enjoys tariff preferences granted for LDCs
under the Global System of Trade Preferences (GSTP).
However, Bangladesh is not participating in the ongoing
third round of trade negotiations under the GSTP.
C. Reciprocal trade arrangements
Country response
Benefits of Reciprocal trade agreements (RTAs)
The government considered that being a party to reciprocal
trade agreements has provided additional benefits
over those enjoyed from LDC status under the WTO
(see Annex Table 5).
yy SAFTA: India is currently providing duty-free access
to a majority of export products from Bangladesh
under the South Asian Free Trade Agreement
(SAFTA), which do not benefit from such a treatment
under Indias DFTP scheme for LDCs.
yy APTA: The global initiative of the Republic of Korea
has 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 preferential
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 committed
to grant DFQF treatment, additional benefits can be
provided by improvements in rules of origin or greater
access 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 disciplines
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.
16
granted under the Asia Pacific Trade Agreement
(APTA), as APTA covers many items of export interest
to Bangladesh.
yy BIMSTEC: Bangladesh also receives additional
market access under the BIMSTEC-FTA from
Thailand. BIMSTEC stands for Bay of Bengal
Initiative for Multi-Sectoral Technical and Economic
Cooperation.12
Important export products from Bangladesh face
higher tariffs than those of competitors in main markets
due to FTAs, customs unions or other limited preferential
schemes.
D. Recommendations to improve
international support measures related to
preferential market access
The following suggestions were provided:
yy Product coverage of DFQF. In order to improve
preferential market access, coverage of such access
should be widened by extending DFQF market
access to all products from all LDCs, on a lasting,
secured and predictable basis, in line with the Hong
Kong Ministerial Decision of the WTO.
12 http://www.bimstec.org/about_bimstec.html
yy Rules of origin. Rules of origin should be formulated
in such a way so that countries eligible for preferential
treatment can effectively take advantage of such
preferences.
yy Supply-side constraints and export diversification.
One of the major concerns relate to supply-side constraints.
Greater international support in building
supply-side capacities towards export diversification
is key to realising the potential benefits of preferential
market access. Besides, initiatives towards encouraging
Foreign Direct Investment (FDI) in LDCs from
developed and developing countries (through additional
incentives for these countries), more energetic
support for capacity-building in SPS-TBT areas, and
technology transfer could enable LDCs to improve
their supply-side capacities. The WTO Agreement
on Trade Facilitation also stipulates that necessary
support will be accorded to LDCs in identified areas
of capacity needs. The support envisaged under the
Aid for Trade initiative should also be expedited and
enhanced.
17
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 Total
FY 1990/91 FY 1994/95 882.1 363.5 1 245.6
FY 1995/96 FY1999/00 304.1 651.1 955.2
FY 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 which
found serious deficiencies in infrastructure and hygiene conditions in processing
establishments 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 for
Textiles and Apparel Products
third party 11 January 2002
DS306 India Anti-Dumping Measure on Batteries from
Bangladesh
complainant 28 January 2004
Table 4: Bangladesh major product exclusions
US$ million
Importing country Product excluded Value of exports
Value 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 Trade Agreement
(SAFTA)
Asia Pacific Trade Agreement
(APTA)
Greater security of access X X
Preferential treatment that would not otherwise be
available X X
Wider product coverage X
More flexible rules of origin X X
Provisions for dealing more effectively with NTMs
Additional technical and financial assistance X X