World Trade Organigation

8/11/2019 World Trade Organigation

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J. Agreement on Trade-Related Aspects ofIntellectual Property Rights (TRIPS)......... 10K. Dispute Settlement.................................... 11L. Trade Policy Reviews................................. 11M. Enhanced Integrated Framework (EIF)...... 12N. General recommendations to improveeffectiveness of WTO Special SupportMeasures................................................... 12

SECTION II. SPECIAL SUPPORT MEASURES RELATED TOPREFERENTIAL MARKET ACCESSA. Non-reciprocal preference arrangements ofdeveloped countries................................... 13B. Non-reciprocal preference arrangements ofdeveloping countries.................................. 14C. Reciprocal trade arrangements................... 15D. Recommendations to improve internationalsupport measures related to preferentialmarket access............................................. 16

Survey on International Support Measures specific to theLeast Developed Countries (LDCs)related to WTO Provisions and Preferential Market Access

BangladeshSummary Resultsprepared by the United Nations Department of Economic and Social

Affairs (DESA)and the Committee for Development Policy (CDP) Secretariat*

Table of ContentsSECTION I. SPECIAL SUPPORT MEASURES UNDER THE WTOA. Compliance with the WTO Agreements.... 2B. Agreement on Agriculture (AoA)............... 3C. Agreement on the Application of Sanitaryand Phytosanitary Measures (SPS)............. 4D. Agreement on Technical Barriers toTrade (TBT)............................................. 6E. Agreement on Trade-Related Investment

Measures (TRIMs).................................... 7F. Agreement on Implementation ofArticle VII of the GATT 1994(Customs Valuation).................................. 8G. Agreement on Import Licensing Procedures 9H. Agreement on Subsidies and CountervailingMeasures (ASCM)..................................... 9I. General Agreement on Trade in Services


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(GATS)..................................................... 9* This summary was prepared by the DESA/CDP Secretariat, based on the survey response submitted bya consultant fromBangladesh. The content, findings, interpretations, and conclusions as expressed in this summary reflectthe views of its authors,and do not necessarily represent the views of the United Nations or Bangladesh. The views presented in

this document should notbe considered as the official position of Bangladesh.

March 20122

SECTION I.SPECIAL SUPPORT MEASURES UNDER THE WTO

A. Compliance with the WTO AgreementsCountry responseBangladesh had to undertake various obligations underthe Uruguay Round Agreements, covering commitmentson market access, subsidies, and the enactment of national

rules and regulations, or the modification of existingnational rules and regulations as per provisions of thevarious WTO 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 GATT)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 agriculturalproduction 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 GATT valuation system, national antidumpinglaws and regulations, and countervailing andsafeguard measures.Bangladesh reported that it was in a position to complywith market-access committments in most of thecases, but faced great difficulties in terms of complyingwith some other obligations. For example, despite havingenacted laws and regulations in accordance with theWTO 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-ofpayments


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Provisions of the GATT 1994, Bangladeshwas scheduled to withdraw quantitative restrictions onimports for 17 categories of products that were beingmaintained on balance of payments grounds, by 2005.However, as a WTO Member, Bangladesh resorted to

GATT Article XVIII:C as a reason to enforce importrestrictions on 5 of these categories beyond 2005, dueto 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 withdrawnthe quantitative restrictions as per its commitment.In addition, Bangladesh, along with other LDCs, requestedan extension of the time frame for complying withTRIPS and TRIMs obligations. An extension of the transitional

period for implementing the TRIPS Agreementuntil 2016 for pharmaceutical products and July 1 2013for other products was granted to LDCs as a group ofmembers. LDCs have also been allowed to maintain existingTRIMs and introduce new measures until 2020.Bangladesh anticipated difficulties in ensuring compliancewith the WTO obligations, such as provisions relatedto subsidies, compliance with SPS and TBT Agreements,TRIMS, TRIPS etc. Bangladesh has put in place variousrules 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 productsbeings dumped into Bangladesh market. But the privatesectors lack of capacity to furnish evidence on the existenceof such dumping practices, and on the alleged injurycaused to the domestic industry by such dumping,which are two prerequisites for initiating any investigation,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 Countriesa had foreseen theneed to ensure their effective participation in the worldtrading system and to improve their trading opportunities.

A great number of Multilateral Trade Agreements(MTAs) provide Special and Differential Treatment (SDT) toLDCs in terms of longer transitional periods or, in somecases, permanent exemptions, for so long as they remainin that category. Many WTO Agreements commit WTOMembers, primarily among developed countries, to take


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special measures in favour of LDCs, such as technical andfinancial assistance, which ought to be implementedexpeditiously and subject to regular reviews.aAnnexed to the Final Act of the Uruguay Round.

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.B. . Agreement on Agriculture (AoA)

The Agreement on Agriculture (AoA) initiates a reformprocess aimed at establishing a fair and market-orientedagricultural 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 anddifferential treatment to developing countries, includingconcerns such as food security, and the possible negativeeffects of reform implementation on LDCs and Net Food-Importing Developing Countries (NFIDCs).

Article 15.2 of the AoA provides LDCs with an overall exemptionfrom undertaking reduction commitments, and

a more specific exemption from bound agricultural tariffreduction as far as the market access pillar is concerned.Since none of the LDCs scheduled commitments withrespect to domestic support and export subsidies whenthey became WTO Members, this provision does not representan additional flexibility for LDCs under both pillars.b

Although they have not scheduled commitments relatedto trade distorting domestic support, LDCs are allowed tomaintain domestic support measures that fall under thecategories exempt from reduction commitments, such asgreen 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 productionduring the relevant year).LDCs as Net food ImportersThe Committee on Agriculture monitors the follow-upto the Decision on Measures Concerning the PossibleNegative 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 increasingproportion of basic foodstuffs is provided to LDCs andNFIDCs in fully grant form and (ii) to give full considerationto requests for the provision of technical and financial assistanceto LDCs and NFIDCs to improve their agricultural

productivity and infrastructure. In 1995, the Committeeestablished notification requirements under which donorMembers are required to submit data on quantity of foodaid and technical and financial assistance to improve agriculturalproductivity provided to LDCs and NFIDCs.b Twenty-five WTO Members can subsidize exports, but only for products on whichthey have commitments to reduce subsidies. 34 WTO Members have commitmentsto reduce their trade-distorting domestic supports in the amber box (i.e to reduce thetotal aggregate measurement of support or AMS).www.wto.org/english/tratop_e/agric_e/negs_bkgrnd08_export_e.htmwww.wto.org/english/tratop_e/agric_e/negs_bkgrnd08_domestic_e.htm


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Country responseDomestic supportBangladesh is not required to undertake any reductioncommitment; when the country became a WTOMember, its Aggregate Measurement of Support

(AMS) was at about 2-3% of agricultural GDP, waybelow the permissible threshold of 10% of agriculturalproduction (de minimis). The country has not so farprovided any agricultural export subsidies.Bangladesh offers domestic support in the form ofsubsidies (input and output subsidies, for example, subsidizedfertilizer and seed procurement).LDCs as Net food Importers1Food aid. After 1995, Bangladesh continued to receivefood aid and project aid in agriculture, but the countryreported 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 ingrant form since 1985. Major donors include Australia,Canada, Germany, Japan, the United States andSaudi Arabia. (Source: External Resources Division ofBangladesh).Technical assistance. Various bilateral and multilateralorganizations have provided technical and financial assistanceto enhance agricultural output, productivity,crop diversification and strengthening of Research andDevelopment (R&D) capacity.

Additional commentsBangladesh mentioned that SDT provisions available toagriculture have been of very limited use. The countrygave examples in the following areas:Market access. In the Uruguay Round, all countries,including LDCs, had to withdraw all quantitative restrictionsand bind duties on all agricultural products.No SDT provision was available with this respect. WhileBangladesh, as an LDC, was not required to make any1 See also WTO document G/AG/W/42/Rev.13,Implementation of the Decision on Measures ConcerningThe Possible Negative Effects of the Reform Programme

on Least-Developed and Net Food-Importing DevelopingCountries, 15 October 2010.4

reduction commitments, this flexibility was offset by thetariff liberalization process initiated by Bangladesh understructural adjustment programmes, as part of WorldBank aid conditionalities in the early 1990s.Domestic support. Bangladesh provided amber boxsupport to agriculture at the WTOs establishment.


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However, the amount allocated for this support wasbelow 10% of the total value of agriculture production;hence, Bangladesh was not required to make anyreduction commitment through taking advantage ofthe relevant SDT provision. Therefore, the SDT provision

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 WTOs creation, only 25 countries provided exports subsidies, and were required, assuch, to undertake reduction commitment. No LDCwas included in this list. Since Bangladesh did not provide

any agricultural export subsidies, it could not useSDT 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 thiscould be that its agriculture has been performing remarkablywell in recent times, with the country graduallymoving towards food self-sufficiency.

C. Agreement on the Application of Sanitaryand 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 specialneeds of developing country Members, and in particular ofthe least-developed country Members (Article 10.1). In orderto operationalize Article 10.1, the SPS Committee setout a Procedure to Enhance Transparency of Special andDifferential Treatment in Favour of Developing CountryMembers.c If a developing country identifies significantdifficulties with the proposed or final measure, the importingMember would examine whether and how theidentified problem could best be addressed: (1) revisionof the SPS measure; (2) provision of technical assistance

to the exporting Member; or (3) provision of special anddifferential treatment. Such a decision has to be notifiedto the SPS Committee. As of 2012, no country has utilizedthis procedure.Under Article 10.4, Members should encourage and facilitatethe active participation of developing country Membersin the relevant international organizations, that is theFAO/WHO Codex Alimentarius, the World Organization for

Animal Health (OIE) and the International Plant Protection


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Convention (IPPC). The 2001 Doha Ministerial Decisionon Implementation-related Issues and Concerns urgesthe Director-General to continue his cooperative efforts withthese organizations and institutions in this regard, includingwith a view to according priority to the effective participationof 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 increaseparticipation of developing countries in the three standard-setting bodies.dUnder Article 9, Members agree to facilitate the provisionof technical assistance to other Members [...] inter alia, in theareas of processing technologies, research and infrastructure,including in the establishment of national regulatory bodies[...] to allow such countries to adjust to, and comply with, sanitaryor phytosanitary measures necessary to achieve the appropriatelevel of sanitary or phytosanitary protection in theirexport markets. The 2001 Doha Ministerial Decision onImplementation-related Issues and Concerns urges members

to ensure that technical assistance is provided to leastdevelopedcountries with a view to responding to the special

problems faced by them in implementing the Agreementon the Application of Sanitary and Phytosanitary Measures(par. 3.6). In 2002, the Standards and Trade DevelopmentFacility (STDF) was established to assist developing countriesto enhance their expertise and capacity to analyzeand implement international SPS standards, and thus theirability to gain and maintain market access.ec See WTO documents G/SPS/33 andAdd.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 AgreementBackground

document, par. 26.e http://www.standardsfacility.org/

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Country responseParticipation in standard-setting organizations2Bangladesh indicated that it did not have any representativein 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. The countryis a member of these three standard-setting bodies.Participation in the SPS CommitteeCapital-based officials have had the opportunity to attendsome of the regular meetings of the SPS Committee.Non-compliance with SPS measures of importing MembersBangladesh experienced difficulties in meeting the SPSrequirements of importing countries for some of its exports(see Annex Table 2):Government action. Generally, exporters facing problemsin meeting SPS requirements applied by importing


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countries bring their case to the attention of theGovernment. The Government then takes the initiativeto resolve the problem through bilateral discussions withthe government of the country concerned, and undertakescorrective 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 presenceof the banned antibiotic nitrofuran was detected.These 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-settingbodies.

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

Technical assistanceIn 1997, the EU provided financial and technical assistanceto help Bangladesh comply with Hazard AnalysisCritical Control Point (HACCP) requirements, afood safety management system. In the last five years,Bangladesh has received technical and financial assistancefrom the EU and UNIDO under the projecttitled Bangladesh Quality Support programme. Theprogram has focused on raising awareness and buildingcapacity 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 theIndian Government to strengthen the capacity of theBangladesh Standards and Technical Institute (BSTI).STDF Assistance3The Government of Bangladesh is yet to receive any supportfrom the STDF, which will be considered after thecompletion of the Diagnostic Trade Integration Study


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(DTIS) under the Enhanced Integrated Framework(EIF). The World Bank has been entrusted with theDTIS and is currently engaged in the study.

Additional commentsThe main reasons for not appropriately taking advantage

of the SDT provisions under the SPS Agreement are relatedto inadequate human resources within the governmentdealing with WTO issues, and the lack of propercoordination among the various ministries monitoringthe WTO Agreements and implementing SPS measures.3 See WTO document G/SPS/GEN/1029, 23 June 2010, for anoverview of STDF projects.6

Country responseParticipation in the TBT CommitteeRepresentatives of Bangladesh rarely participate in meetingsof the TBT Committee. Between 1995 and 2010,

the country did not make any notification to the TBTCommittee.4There is lack of capacity to regularly examine TBTrelatednotifications both within the government and inthe private sector. As a result, Bangladesh has not beenable to assess trade impact of the TBT measures and puton record its Specific Trade Concerns regarding technicalregulations and standards.Non-compliance with technical regulations or standardsof importing MembersSome consignments of Bangladesh major export products,

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 Barriersto Trade (TBT)The TBT Agreement recognizes that developing countries arenot able to fully implement the Agreement because of theirspecial development and trade needs, as well as their stageof technological development. The TBT Committee cangrant, upon requests specified, time-limited exceptions inwhole 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 leastdevelopedcountry Members (Article 12.8).When providing advice and technical assistance toother WTO Members, Members shall give priority to theneeds of the least-developed country Members. (Article 11.8).

Also, in determining the terms and conditions of the technicalassistance, account shall be taken of the stage of development


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of the requesting Members and in particular of theleast-developed country Members. (Article 12.7).Technical assistance may include: advice on the preparationof technical regulations (Article 11.1); the establishmentof national standardizing bodies, and participation in theinternational standardizing bodies (Article 11.2); the establishment

of conformity assessment bodies (Article 11.3 and11.4); advise regarding the steps that should be taken byproducers from developing countries if they wish to haveaccess to systems for conformity assessment operatingwithin the territory of the importing Member (Article 11.5);advice regarding the establishment of the institutions andlegal framework which would enable them to fulfil the obligationsof membership or participation in internationalor regional conformity assessment systems (Article 11.6and 11.7).The 2001 Doha Ministerial Decision on ImplementationrelatedIssues and Concerns (i) urges members to provide,to the extent possible, the financial and technical assistance

necessary to enable least-developed countries to respondadequately to the introduction of any new TBT measureswhich 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 respondingto the special problems faced by them in implementingthe Agreement on Technical Barriers to Trade (par 5.4). In2002, the WTO Secretariat submitted a questionnaire fora survey to assist developing country Members to identifyand prioritise their specific needs in the TBT field.fIn 2000, the TBT Committee decided that tangibleways of facilitating developing countries participation ininternational standards development should be sought. Theimpartiality and openness of any international standardization

process requires that developing countries are notexcluded de facto from the process. With respect to improving

participation by developing countries, it may be appropriateto use technical assistance, in line with Article 11 ofthe TBT Agreement.g The 2001 Doha Ministerial Decisionon Implementation-related Issues and Concerns urgesthe Director-General to continue his cooperative efforts withthese organizations and institutions, including with a view toaccording priority to the effective participation of least-developedcountries and facilitating the provision of technical andfinancial assistance for this purpose. (par 5.3). International

standard-setting organisations such as the ISO, ITU and IEChave launched initiatives to enhance developing countryand LDC participation.f See WTO document G/TBT/W/178, 18 July 2002.The compilation of responses by the WTO Secretariat is contained inWTO document G/TBT/W/193, 10 February 2003.g See Development Dimension of the Decision of the Committee on Principlesfor the Development of International Standards, Guides and Recommendationswith relation to Articles 2, 5 and Annex 3 of the Agreement, Annex 4 ofWTO document G/TBT/9, 13 November 2000.

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Bangladesh has also faced TBT measures with regardto export of shrimps to the United States due to lackof 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 disputewith the importing country to resolve the disputethrough mutual discussion and also by taking correctivemeasures.Identification of technical assistance needs5In 2002, Bangladesh responded to a survey by the WTOSecretariat which aimed at assisting developing countryMembers to identify and prioritise their technical assistanceneeds.6 The country prioritised the followingTBT-related technical assistance, technical cooperationand capacity building needs:

yy Technical Mission by the WTO for raising awarenessabout the TBT and providing training to concernedofficials with a view to enabling them to fulfilthe requirement of the TBT Agreement;yy Technical and financial assistance to upgrade theBangladesh Standards and Testing Institution (BSTI);yy Financial assistance to participate in internationalstandard-setting activities as well as in annual andtriennial reviews of the TBT Agreement;yy Technical assistance regarding access to systems forconformity assessment operated by the developedcountries.Technical assistanceBangladesh has benefited from the technical and financialsupport of the EU, the United Nations IndustrialDevelopment Organization (UNIDO), and Japan DebtCancellation Fund (JDCF). Projects funded and implementedincluded the following: Quality ManagementSystem and Conformity Assessment Activity forBangladesh Quality Support Programme (Post MFA),Market access and trade facilitation support for South5 See WTO document G/TBT/W/178, Questionnaire for asurvey 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 iscontained in WTO document G/TBT/W/193, 10 February 2003.6 The submission of Bangladesh is contained in WTOdocument JOB(02)/99/Add.37, 2 October 2002.

Asian least-developed countries, through strengtheninginstitutional and national capacities related to standards,metrology, testing and quality, Modernization of BSTIthrough procurement of sophisticated equipment & infrastructure,


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Development of Laboratories for accreditation.Use of Article 12.8 TBTBangladesh did not make use of Article 12.8 TBT.

Additional commentsIt was suggested that the country would be better prepared

to make use of the relevant SDT provisions, ifa particular institution, such as the Bangladesh TariffCommission (BTC), was entrusted with the responsibilityto 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 withTBT-related issues.

E. Agreement on Trade-Related InvestmentMeasures (TRIMs)

LDCs were granted a seven-year transitional periodto phase out measures inconsistent with the TRIMs

Agreement, if they were notified 90 days after the dateof the acceptance of the WTO Agreement (Article 5.1 and

Article 5.2).h The transition period could be extended, if anLDC experienced particular difficulties to bring these measuresin conformity with the TRIMs Agreement (Article 5.3).The 2001 Doha Ministerial Decision on ImplementationrelatedIssues and Concerns, urges the Council for Tradein Goods to consider positively requests that may be madeby least-developed countries under Article 5.3 of the TRIMs

Agreement or Article IX.3 of the WTO Agreement, as well as totake into consideration the particular circumstances of leastdeveloped

countries when setting the terms and conditionsincluding time-frames (par. 6.2).

Annex F of the Hong Kong Ministerial Declarationi introducedthree SDT provisions which will expire by 2020:First, LDCs were allowed to maintain TRIMs-inconsistentmeasures for a (new) period of seven years, if notified by18 January 2008. Second, this transition period may be8

Country responseNotification of TRIMs inconsistent with theTRIMs AgreementBangladesh has never notified the WTO of any TRIMs

inconsistent with the TRIMs Agreement.Introduction of TRIMs inconsistent with theTRIMs AgreementBangladesh did not introduce any new measure deviatingfrom the obligations of the TRIMs Agreement.

F. Agreement on Implementation of Article VIIof the GATT 1994 (Customs Valuation)Country response


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Resort to SDT provisions7Bangladesh delayed the implementation of the Agreementon Customs Valuation for five years (Article 20.1)since it was not party to the Tokyo Round CustomsValuation Code, without notifying the WTO. The

country did not request an extension of the five-yeardelay period (Annex III, paragraph 1).The country also delayed the application of thecomputed value method (Article 20.2). Furthermore,the country made reservations concerning: minimumvalues (Annex III, paragraph 2), reversal of sequentialorder of Articles 5 and 6 (Annex III, paragraph 3), andapplication of Article 5.2 whether or not the importer sorequests (Annex III, paragraph 4).87 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 (seeprevious footnote), Bangladesh has officially not resorted toAnnex III, paragraph 2.

The Agreement on Customs Valuation permitted developingcountry Members not party to the Tokyo RoundCustoms Valuation Code to delay application of the provisionsof this Agreement an initial transitional period of fiveyears (Article 20.1), which could be extended if requestedand justified (Annex III.1).Pursuant to Article 20.2, developing country Memberscould delay application of the computed value methodfor a period not exceeding three years following their

application of all other provisions of this Agreement.Annex III.2 allowed developing countries which valuedgoods on the basis of officially established minimum values[...] to make a reservation to enable them to retain such valuesextended by the Council for Trade in Goods under theexisting procedures set out in the TRIMs Agreement,taking into account the individual financial, trade, and developmentneeds of the Member in question. Third, LDCswere given the right to introduce new TRIMs-inconsistentmeasures for five years, if notified within six months aftertheir adoption.h Governments that accepted the WTO Agreement after 1 January 1995 had aperiod 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 TRIMsnotified under Article 5.1 being governed by reference to the date of entry into forceof 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 conditionsas may be agreed to by the Members.

Annex III.3 allowed developing countries to make a reservationconcerning the sequential order of Articles 5 and 6.Members who made a reservation under Article III.4 are


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allowed to use the prices applicable in the importing countries,whether or not the importer agrees to it.These two provisions are permanent exceptionsif Members consented to the reservation, in contrastwith the special provisions under Articles 20.1 and 20.2,

Annex III.1 and Annex III.2.j

The 2001 Doha Ministerial Decision on ImplementationrelatedIssues and Concerns urges the Council for Tradein Goods to give positive consideration to requests thatmay be made by least-developed country members under

paragraphs 1 and 2 of Annex III of the Customs ValuationAgreement or under Article IX.3 of the WTO Agreement, as wellas to take into consideration the particular circumstances ofleast-developed countries when setting the terms and conditionsincluding time-frames.jAs 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 LicensingProcedures provides that in allocating non-automatic

licences, consideration shall also be given to ensuring areasonable distribution of licences to new importers. [] Inthis regard, special consideration should be given to those importersimporting products originating in developing countryMembers and, in particular, the least-developed countryMembers.

G. Agreement on Import Licensing ProceduresCountry responseParticipation in the Committee on Import LicensingRepresentatives of Bangladesh have not attended theregular meetings of the Committee on Import Licensing.Further, the country has not brought any issues regarding

the application of import licenses by another Member tothe attention of the Committee on Import Licensing.

H. Agreement on Subsidies andCountervailing Measures (ASCM)Country responseExport subsidiesExport 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%).The exports benefiting from such subsidies havenot been subject to countervailing measures. Further,Bangladesh indicated that none of the products receivingexport subsidies achieved export competitivenesswithin the meaning of Article 27.6 of the Agreement.

I. General Agreement on Tradein Services (GATS)

According to Annex VII to the Agreement on Subsidies


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and Countervailing Measures, LDCs are not subject to theprohibition on export subsidies as set out in Article 3.1(a) ofthat Agreement (Article 27.2(a)). However, their subsidizedexports are potentially liable for countervailing duties (if thesubsidies 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 forthat product for two consecutive calendar years. Legally,export competitiveness only exists if the LDC notifies theWTO or if the WTO Secretariat performs the calculation onrequest 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 ImplementationrelatedIssues and Concerns, it was decided that the eightyear

period in Article 27.5 within which a least-developedcountry Member must phase out its export subsidies in respectof a product in which it is export-competitive begins from the

date export competitiveness exists within the meaning ofArticle 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 developingcountry Members in world trade shall be facilitatedthrough negotiated specific commitments [...] relating to:(a) the strengthening of their domestic services capacity andits efficiency and competitiveness, inter alia through accessto technology on a commercial basis; (b) the improvementof their access to distribution channels and information networks;and (c) the liberalization of market access in sectorsand modes of supply of export interest to them.In 2003, Members decided to develop appropriatemechanisms with a view to achieving full implementation of

Article IV:3 of the GATS and facilitating effective access of LDCsservices and service suppliers to foreign markets. Membersalso decided that targeted and coordinated technical assistanceand capacity building programmes shall continue to be

provided to LDCs in order to strengthen their domestic servicescapacity, build institutional and human capacity, and enablethem to undertake appropriate regulatory reforms.kTelecommunicationsIn the GATS Annex on Telecommunications,l paragraph 6(d),

it is agreed that Members shall give special consideration toopportunities for the least-developed countries to encourageforeign suppliers of telecommunications services to assist in thetransfer of technology, training and other activities that supportthe development of their telecommunications infrastructureand expansion of their telecommunications services trade.k See WTO document TN/S/13, 5 September 2003, Modalitiesfor the special treatmentfor 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 responseExtension of transition periodA 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 TRIPS on the Extension of the transition periodunder article 66.1 of the TRIPS Agreement for leastdevelopedcountry Members, Bangladesh provided informationon its individual priority needs for technicaland financial cooperation.99 WTO document IP/C/W/546, 23 March 2010.

Country responsePriority service sectors in national development policiesBangladesh reported that no service sector has been prioritizedin its national development policies.Technical assistanceThe 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 servicesSince 1995, a number of telecommunication companiesproviding mobile telephone services have been operatingin Bangladesh. In order to raise the efficiency of their employeesand provide quality service, they have providedtraining programmes on a commercial basis. These programmes,along with telecom business operations runin the country, have facilitated technology transfer. Theprogrammes were not undertaken to meet any specificcommitment under the WTO, but were part of normalbusiness practice, to cater for the human resources needsof multinational companies.

J. Agreement on Trade-Related Aspects ofIntellectual Property Rights (TRIPS)LDCs were not required to implement the provisionsof the TRIPS Agreement, other than

Articles 3, 4 and 5, for a period of 10 years from1 January 1996 (Articles 65.1 and 66.1). An extension of the

transition period (par. 1) was granted for LCD members foranother 7.5 years, until 1 July 2013.m In addition, LDCs werenot obliged to provide or enforce patents or exclusivemarketing rights on pharmaceutical products until1 January 2016.n

Article 67 stipulates that developed country Membersshall provide, on request and on mutually agreed terms andconditions, technical and financial cooperation in favour of developingand least-developed country Members. According


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to paragraph 2 of the Decision on the Extension of theTransition Period under Article 66.1 for LDCs, all the LDCMembers will provide to the Council for TRIPS as much informationas possible on their individual priority needs fortechnical and financial cooperation in order to get properassistance to implement the TRIPS Agreement, preferably

by 1 January 2008. Developed country Members were requestedto furnish technical and financial cooperation infavour of LDCs in order to effectively address these needs.Under Article 66.2 of the TRIPS Agreement, developedcountry Members shall provide incentives to enterprises andinstitutions in their territories for the purpose of promotingand encouraging technology transfer to least-developedcountry Members in order to enable them to create a soundand viable technological base.A mechanism for ensuringthe monitoring and full implementation of the obligationsunder Article 66.2 was established by the TRIPS Council.oParagraph 6 of the Doha Ministerial Declaration on theTRIPS Agreement and Public Healthp recognized that

WTO Members with insufficient or no manufacturing capacitiesin the pharmaceutical sector could face difficulties inmaking 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 issuecompulsory licences to suppliers in exporting countriesunder specific conditions. It is assumed that LDCs haveinsufficient or no manufacturing capacities. Subsequently,on 6 December 2005, a Protocol amending the TRIPS

Agreement from giving this provision a permanent legalstatus was submitted for signature by Members.qm 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 66.2of 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 cooperationThe country has received technical cooperation fromdeveloped country Members to assist in the implementationof the TRIPS Agreement. The European Unionhas supported a project in the Department of Patents,Designs and Trademarks, with the objective to introducenew 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 TRIPScompliance.Use of the Paragraph 6 System10The country has accepted the Protocol Amending theTRIPS Agreement on 15 March 2011. Bangladesh hasnot yet imported pharmaceutical products produced


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under compulsory license.New patents on pharmaceutical productsAlthough Bangladesh as an LDC is exempted from TRIPSobligations 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 hasrecently discontinued the practice to grant patent onpharmaceutical products.

K. Dispute Settlement10 http://www.wto.org/english/tratop_e/trips_e/amendment_e.htm

Country responseParticipation in WTO dispute settlementBangladesh has been involved in two dispute settlementcases, as follows (see Annex Table 3).Bangladesh has never requested the good offices ofthe Director General or the Chairman of the DSB.

L. Trade Policy ReviewsCountry responseBangladesh underwent two Trade Policy Reviews sincethe establishment of the WTO, respectively in 2000 and2006. Its first Trade Policy Review (under GATT) wascarried out in 1992.Technical assistance from the WTO SecretariatBangladesh took appropriate preparations for the tradepolicy reviews of 2000 and 2006 without having requestedtechnical assistance from the WTO.

Article 24 of the Dispute Settlement Understandingsets out Special Procedures Involving Least-DevelopedCountry Members under which particular considerationshall be given to the special situation of LDCs. At all stagesof the determination of the causes of a dispute and of disputesettlement procedures, Members shall exercise duerestraint both in raising matters involving LDCs, and in askingfor compensation or seeking authorization to suspendconcessions or other applicable obligations.In dispute settlement cases involving an LDC, theDirector-General or the Chairman of the DSB shall, uponrequest by a LDC offer their good offices, conciliation and mediationwith a view to assisting the parties to settle the dispute,

before a request for a panel is made.The Trade Policy Review Mechanism (TPRM) providesthat smaller trading countries will be reviewed every sixyears, except that a longer interval may be fixed for LDCs.Particular account shall be taken of difficulties presentedto LDCs in compiling their reports. The Secretariat shallmake available technical assistance on request to developingcountry Members, and in particular to the leastdeveloped country Members.


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Trade Policy Review URL2000 www.wto.org/english/tratop_e/tpr_e/tp132_e.htm2006 www.wto.org/english/tratop_e/tpr_e/tp269_e.htm12

Country responseBangladesh has not yet submitted any proposal for

support under the Aid for Trade initiative. However,efforts have been initiated to identify possible areas andprojects, through the DTIS process,11 to be subsequentlysubmitted for support under Aid for Trade.

N. General recommendations to improveeffectiveness of WTO Special SupportMeasuresIn many LDCs, there is a lack of capacity to (a) absorbthe technical notifications from the WTO, (b) assesstheir implications on offensive as well as defensive interests,(c) take follow-up actions to safeguard the countrys

offensive and defensive interests, and (d) design proposalsfor concrete technical, advisory, and financial capacitybuilding support from the WTO or developmentalpartners. In this regard, there is a need for (a) setting upWTO focal points in key ministries, (b) greater interministerialcoordination, and (c) building up greatercapacity to (i) articulate and (ii) prepare projects for support,in various agencies and ministries. Enhancing thecapacity of Chambers of Commerce in WTO-relatedmatters is also important.11A diagnostic trade integration study (DTIS) evaluates internal

and external constraints on a countrys integration into theworld economy. It is the first step for funding under theEnhanced 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 contributionto reducing their supply-side constraints. One of themain components of the Enhanced Integrated Framework(EIF) process includes the preparation of a Diagnostic TradeIntegration Study (DTIS) to recognize constraints to traders,distinguish sectors of greatest export potential, andidentify an action matrix, a plan of action that would allow

a better integration of LDCs into the international tradingsystem. This would enable LDCs to formulate trade-relatedprojects and to access Aid for Trade.

Aid for Trade is development assistance targeted athelping developing countries to take advantage of tradeopportunities. In December 2005, the Sixth MinisterialConference in Hong Kong created a new WTO workprogramme on Aid for Trade. Ministers directed the WTOto coordinate its efforts with donors and relevant agencies


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to significantly increase aid for trade-related technical assistanceand capacity building (Annex F of the Hong KongMinisterial Declaration).rr SeeAid for Trade.

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SECTION II.

SPECIAL SUPPORT MEASURES RELATED TOPREFERENTIAL MARKET ACCESS

A. Non-reciprocal preference arrangementsof developed countriesCountry responseEligibility and product coverageBangladesh is eligible for all Generalised Systems ofPreferences (GSP) schemes maintained by developedcountries. In FY 2009-10, the top three export destinationswere 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 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. About5% of Bangladeshs exports to the US market were Most Favored Nation (MFN) zero-duty exports, whilst theGSP scheme covered only about 2% of exports.Main impediments to fully utilizing preferencesBangladesh has listed the following constraints to fullyutilize preferences, ranked in descending importance,ranging from the highest to the lowest inhibiting factors:For non-tariff measures, please refer to Section I.Con the SPS Agreement and Section I.D on the TBTAgreement.1. Rules of originRules 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 thereforeunable to fully utilize preferences in woven appareldue to two-stage transformation requirements.For other products, rules of origin present a less significantbarrier. 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 generous


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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, either

through bilateral or multilateral programmes. However,the EU has recently undertaken a project for introducinga GSP certification system in Bangladesh whichwill improve Bangladeshs administrative capacity withNon-reciprocal market access preferences entitle exportersfrom LDCs to pay lower tariffs or to have duty- andquota-free access to third country markets. Many of thesetrade preferences are granted under the GeneralizedSystem of Preferences (GSP).Developed Members, and developing countryMembers declaring themselves in a position to do so,agreed to provide duty-free and quota-free market accesson a lasting basis, for all products originating from all LDCs by2008 or no later than the start of the implementation periodin a manner that ensures stability, security and predictability.Members who face difficulties to provide duty-free andquota-free (DFQF) market access immediately committhemselves to provide duty-free and quota-free market accessfor at least 97 per cent of products originating from LDCs,defined at the tariff line level, by 2008 or no later than the startof the implementation period (Annex F of the 2005 HongKong Ministerial Declaration).

Although LDCs may be granted duty-free treatmentfor all or most of their exports to some of their tradingpartners, these preferences are far from being fully utilized,

and many exports eligible for preferential treatmentdo not actually receive it, and are eventually submitted toduties.1 Rules of origin2 Supply-side problems3 Non-tariff measures4 Lack of awareness of eligibility to preferential treatment5 Lack of awareness of preferences6 Low preferential margins14

regard to rules of origin.2. Supply-side constraintsBangladesh mentioned the following major supply constraints

to the countrys exports:3. Low-preference marginsBangladeshs major export products are woven and knitgarments, 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.


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Woven and knit garments are subject to high dutiesin all countries, an average MFN duty of 15%, andtariff peaks pose formidable challenge to Bangladeshiexporters.The following major export products have lowpreference

margins:4. Security of accessThe country considered that the lack of security of preferentialaccess acted as a deterrent to export-orientedinvestment. A good example of that was the petitionfiled by a sleeping bag manufacturer in the United Statesrequiring the withdrawal of GSP facilities on sleepingbags. The Government of Bangladesh as well as otherBangladeshi stakeholders sent their written submissionson the petition when the Office of United States TradeRepresentative (USTR) initiated the review. The request

was eventually denied by the USTR.Duty-free and quota-free (DFQF) access grantedwithin the framework of the WTO seems to be morepredictable and secure. The WTO DFQF market accessinitiative 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 oforigin. Therefore, a universal and comprehensive DFQFtreatment, as stipulated in the Hong Kong MinisterialDeclaration, is a preferred option.

B. Non-reciprocal preference arrangements

of developing countriesSupply-side constraintsinhibiting exportsProducts affectedPhysical infrastructure All sectorsHuman resources All sectors, particularly thoserequiring skilled workersHigh cost of capital All sectorsCapacity constraints in complyingwith SPS and TBT standards ofimporting countriesAll sectorsBorder infrastructure All sectors

ImportingmarketProduct DutyUnited States Shrimps, jute and juteproducts, fertilizersMFN duty-freeEuropean Union Jute and jute products,leather, fertilizersMFN duty-freeor low-duty


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Canada Shrimps, fertilizers, leather,jute and jute products(excluding jute bags)MFN duty-freeJapan Jute and jute products(excluding jute fabrics)MFN duty-freeJapan Shrimps Very low-duty(lower than 5%)

Under Annex F of the Hong Kong Ministerial Declaration,developing countries declaring themselves in a positionto do so, agreed to follow suit in providing duty-free andquota-free (DFQF) treatment to LDC products.sThe Global System of Trade Preferences amongDeveloping Countries (GSTP) is a preferential tradeagreement signed on 13 April 1988, aiming at increasingtrade between developing countries in the framework ofUNCTAD. Pursuant to Article 17.3 of the GSTP Agreement,LDCs shall notbe required to make concessions on a reciprocal

basis, and such participating least-developed countryshall benefit from the extension of all tariff, para-tariff andnon-tariff concessions exchanged in the bilateral/plurilateralnegotiations which are multilateralized. ts Members who face difficulties to provide DFQF market access immediatelycommit themselves to provide duty-free and quota-free market access for at least97 per cent of products originating from LDCs, defined at the tariff line level, by2008 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 responseEligibility and product coverageBangladesh indicated eligibility for the preference

schemes of the following countries:yy Republic of Korea, with Rules of Origin requirementof 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 covering80% 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 preferencesThe main impediments to utilizing preferences inschemes made available by developing countries primarilyrelate to product coverage and rules of origin:yy For Bangladesh, the Duty Free and Tariff Preferencescheme (DFTP) offered by India in 2008 is lessattractive than tariff concessions granted by India


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under the South Asian Free Trade Agreement(SAFTA), both in terms of coverage and extensionof tariff concessions. While all products covered underDFTP Scheme are duty-free since January 2008under the SAFTA, these are yet to be made duty-free

under the DFTP scheme.yy The 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. The coverage of the duty-freescheme accorded by the Republic of Korea to itsimports from Bangladesh is not significant. Rulesof origin require 50% value addition. Therefore, itwill not be easy for Bangladesh to benefit from thisparticular scheme.yy The duty-free scheme granted by China has come

into effect only on 1 July 2010. Therefore, 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 Trade Preferences (GSTP).However, Bangladesh is not participating in the ongoingthird round of trade negotiations under the GSTP.

C. Reciprocal trade arrangementsCountry responseBenefits of Reciprocal trade agreements (RTAs)The government considered that being a party to reciprocal

trade agreements has provided additional benefitsover those enjoyed from LDC status under the WTO(see Annex Table 5).yy SAFTA: India is currently providing duty-free accessto a majority of export products from Bangladeshunder the South Asian Free Trade Agreement(SAFTA), which do not benefit from such a treatmentunder Indias DFTP scheme for LDCs.yyAPTA: The global initiative of the Republic of Koreahas been so far less lucrative than the preferencesEvery LDC WTO Member is a party to at least one FreeTrade Agreement (FTA), customs union or limited preferentialagreement. Such agreements, when entered intowith other developing countries, often provide LDCs withpreferential access to markets that they would otherwisenot receive.In FTAs with developed countries, which are committedto grant DFQF treatment, additional benefits can beprovided by improvements in rules of origin or greateraccess to financial and technical assistance to overcomeNon-Tariff Measures (NTMs) such as SPS. On the other hand,


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membership in these Agreements may require LDCs tomake reciprocal concessions which they are not requiredto make in the WTO or even accept more stringent disciplineson other trade issues (so-called WTO plus). LDCscould also face higher duties than their competitors whenthey do not sign FTAs with major export markets.u

u See Strengthening International Support Measures for the Least DevelopedCountries, Policy Note, Committee for Development Policy, p. 9.

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granted under the Asia Pacific Trade Agreement(APTA), as APTA covers many items of export interestto Bangladesh.yyBIMSTEC: Bangladesh also receives additionalmarket access under the BIMSTEC-FTA fromThailand. BIMSTEC stands for Bay of BengalInitiative for Multi-Sectoral Technical and EconomicCooperation.12Important export products from Bangladesh face

higher tariffs than those of competitors in main marketsdue to FTAs, customs unions or other limited preferentialschemes.

D. Recommendations to improveinternational support measures related topreferential market accessThe following suggestions were provided:yyProduct coverage of DFQF. In order to improvepreferential 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 WTO.12 http://www.bimstec.org/about_bimstec.html

yyRules of origin. Rules of origin should be formulatedin such a way so that countries eligible for preferentialtreatment can effectively take advantage of suchpreferences.yy Supply-side constraints and export diversification.One of the major concerns relate to supply-side constraints.Greater international support in buildingsupply-side capacities towards export diversification

is key to realising the potential benefits of preferentialmarket access. Besides, initiatives towards encouragingForeign Direct Investment (FDI) in LDCs fromdeveloped and developing countries (through additionalincentives for these countries), more energeticsupport for capacity-building in SPS-TBT areas, andtechnology transfer could enable LDCs to improvetheir supply-side capacities. The WTO Agreement


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on Trade Facilitation also stipulates that necessarysupport will be accorded to LDCs in identified areasof capacity needs. The support envisaged under theAid for Trade initiative should also be expedited andenhanced.17

AnnexTable 1: Food aid and project aid in agriculture received by Bangladesh after 1995US$ millionPeriod (FY = financial year) Food aid Project aid in agriculture TotalFY 1990/91FY 1994/95 882.1 363.5 1 245.6FY 1995/96FY1999/00 304.1 651.1 955.2FY 2000/01FY 2004/05 198.6 278.1 476.7Source: Bangladesh Ministry of Finance, External Relations Division

Table 2: Non-compliance with SPS measures of importing MembersExport product Importing partner Grounds for rejectionShrimps European Union Import ban after EU inspections of Bangladeshs seafood processing plants which found serious deficiencies in infrastructure and hygiene conditions in processingestablishments and lax quality control by Bangladesh government inspectorsHilsa fish India Mandatory testing requirement of each and every consignment of all processedfood and sanitary permit requirement for import of hilsa fish

Table 3: Bangladesh, participation in WTO dispute settlementCase number Case name Capacity Initiation dateDS243 United States of AmericaRules of Origin forTextiles and Apparel Productsthird party 11 January 2002DS306 IndiaAnti-Dumping Measure on Batteries fromBangladeshcomplainant 28 January 2004

Table 4: Bangladesh major product exclusionsUS$ millionImporting country Product excluded Value of exports

Value of exports as percentage oftotal exports to country concernedRepublic of Korea Shrimps, leather, petroleum by-products 84.7 69.5China No major export items 11.0 8.3India Betel nuts, garments 22.7 8.0Brazil Information not available

Table 5: Bangladesh Benefits of RTAsBenefit(s)South Asian Free Trade Agreement(SAFTA)Asia Pacific Trade Agreement(APTA)Greater security of access X X

Preferential treatment that would not otherwise beavailable X XWider product coverage XMore flexible rules of origin X XProvisions for dealing more effectively with NTMsAdditional technical and financial assistance X X

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