BANGLADESH鈥橲 graduation to developing countries from least developed countries is only about 32 months away. During this transition period, active participation in the Multilateral Trading System under the World Trade Organisation is important to gain trade benefits and keep up its share in global trade. Reliant on a single product that too depends on imported materials, it is important to dig up details about its potential competencies and efficiently use domestic resources to sustain itself as a global player. The 13th Ministerial Conference held in Abu Dhabi from February 26鈥揂pril 2 was one of the vital forums to raise related concerns. The Bangladesh delegation used its best source of power to play strongly to negotiate its issues throughout the whole run-up to the ministerial, although the achievements of LDCs were not up to the requirements.
More than 60 countries will have their elections in 2024. Our neighbouring country, India, tried to establish its case on Public Stock Holding and was not going to take any risk from its farmers, while the USA was not going to yield on a newly minted appellate body. It is difficult to get consensus among 166 member countries, but the WTO can still do a lot if it performs properly.
The Abu Dhabi Ministerial Declaration, adopted on March 2 and circulated on March 4, marked the 30th anniversary of the World Trade Organisation, emphasised meeting the objectives of the Marrakesh Agreement to address concerns of WTO members at different levels of economic development, and achieved important progress. It reaffirmed its commitment made in the 12th Ministerial Conference for necessary reforms in the functioning of WTO councils, committees, and negotiating groups to enhance its efficiencies, effectiveness, and facilitation of members鈥� participation in WTO work.
It is, however, worrisome when dispute settlement mechanisms remain an unresolved concern for many years. This is a vicious cycle. Many more MCs may be required to address these unresolved issues. Meaning the stalemate in the two-tier WTO dispute settlement process continues. The MC13 could not lay out any concrete path forward for the restoration of the appellate mechanism; thus, the WTO reform has been made questionable. There were vast differences of opinion that it could not create any benefit.
One relief for Bangladesh, as per Trade Facilitation Article 20.2-3 (Understanding Rules and Regulations of Dispute Resolution Body), is a grace period of three years, and preferential tariff treatment for LDCs up to June 30, 2029, has been agreed. So for Bangladesh, the next 5 years are very crucial to complete preparation to face difficult situations after graduation.
The Abu Dhabi Ministerial Declaration has expressed its commitment to preserve and strengthen the ability of MTS, with the WTO at its core, to respond to the current trade challenges. It also places importance on transparency, including information sharing and promoting the resilience of global supply chains. Bangladesh has to take a lot of preparation in that respect; there are a number of pending time-bound issues and commitments under the TF agreement waiting for implementation by 2024, and information disclosure is one of them.
It is also true that, despite the commitment to strengthen the ability of MTS, a number of plurilateral and joint statement initiatives progressed and gained momentum. However, small gains, such as; investment facilitation for development, cannot be agreed upon to be included in the WTO rule book, which has the extensive support of about 123 members.
Similar is the case with domestic regulation of services. Two-thirds of global economic output and jobs are generated from services. Disciplines on services domestic regulation entered into force in February 2024 are committed to implementing these new disciplines. Bangladesh could not avail of any benefit from the service waiver. Services trade is increasing globally; we are lagging in confirmed data; goods exports were at $62 billion; the target for services was set at $10 billion in 2023鈥�24; this means that services are contributing significantly to export trade. We also need transparency and information on the service trade as well as the goods trade.
The declaration also reiterated the development dimension in the work of the WTO and expressed a strong desire for the full integration of developing members and LDCs for their economic development using the MTS. It continued with their will to improve the application of special and different treatments in the Committee on Trade and Development.
The G-90 (75 per cent of WTO developing country members) document on Trade and Development identified 10 Agreement Specific S&DT Proposals (ASPs): giving importance to TRIMS policy support, GATT 1994 (Article XVIII-Retaliation), balance of payment, SPS and TBT issues most (longer time), subsidies and countervailing, customs valuation have specific importance in the context of Bangladesh, and need to work extensively for incremental benefits. These issues are mandated to be resolved by the year 2024.
The declaration recognises the role of trade and the transfer of technology and continues to work, in that respect, with other relevant international organisations. Article 66.1 on Implementation of the TRIPS other than Art. 3, 4, and 5 is extended until July 1, 2034, and Art. 66.2 entails technology transfer. Bangladesh is the largest manufacturer of medicines in the LDCs. Now that bi-similar and bio-tech drugs are gaining more attention and need larger molecules than chemical drugs, we have no alternative but to try for an extension of the TRIPS exemption. Reverse engineering of bio-similar products is difficult. Extensive R&D and the establishment of Technology Transfer Units in the important universities for industry-academic collaboration are vital to supporting the pharma sector after graduation.
Several supportive schemes, such as the Aid for Trade Initiative for developing countries technical assistance, the Enhanced Integrated Framework for trade-related capacity building by the United Nations Office for Project Services, and similar other available programmes, need to be utilised as much as possible for capacity building.
The Declaration put emphasis on the need for small economies and land-locked developing countries to implement the Trade Facilitation Agreement and the Sustainable Development Agenda and underscored the importance of trade and sustainable development in its three pillars, such as economic, social, and environmental issues. It also recognises the need for women鈥檚 economic development.
The Declaration agreed on some specific issues. These are at different stages of negotiation and will come as decisions in the upcoming ministerial conferences. They are the work programmeme on small economies, WTO Smooth Transition Support Measures in favour of countries graduated from LDC status, strengthening regulatory cooperation to reduce technical barriers to trade, the precise, effective, and operational implementation of special and differential treatment provisions of the agreement on the application of sanitary and phytosanitary measures and the agreement on TBT, dispute settlement reforms, the work programmeme on e-commerce and TRIPS non-violation, and situation complaints. Bangladesh needs to closely follow the updates on the negotiations and contribute.
Fisheries subsidies (Article 8, Footnote 13) are an important concern for Bangladesh and developing countries, with an annual share of the global volume of marine capture production not exceeding 0.8 per cent. The notification of the additional information in this subparagraph may need to be made every four years. Bangladesh should advocate for extended time and should work carefully about the threshold limit. Specific data on marine catch is not available to qualify the case that Bangladesh鈥檚 marine catch is below the threshold of 0.8 per cent. A small artisanal, exclusive economic zone would need exemption from actions based on Articles 3.1 and 10 of this Agreement.
The work programme on e-commerce, included in the declaration and adopted on March 2, 2024, has special importance to Bangladesh. Further discussions and examinations of additional empirical evidence will be needed to understand the scope, definition, and impact that a moratorium on customs duties on electronic transmissions might have on development and how to level the playing field for developing countries and LDC members to advance their digital industrialisation. The MC3 agreed to maintain the current practice of not imposing customs duties on electronic transmissions until the 14th session of the MC or March 31, 2026, whichever is earlier. Bangladesh is not very active in global e-commerce; however, the moratorium on duties has helped the country gradually take control of some issues. An extension of the e-commerce moratorium will work positively for the country, and by this time, strong preparation for investment by start-ups and large companies would be required. Country-to-country agreements may pave the way for the sector to flourish.
Over and above, Bangladesh needs to better prepare and negotiate trade benefits through the WTO mechanisms.
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Ferdaus Ara Begum is chief executive officer of BUILD, a public-private dialogue platform that works for private-sector reforms.
