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Bangladesh to enjoy trade benefits beyond 2026
24 October, 2023, 10:10 pm
Last modified: 24 October, 2023, 10:14 pm
Two foreign-flagged vessels departed the Chittagong port on Tuesday (24 October) with 50% cargo capacity owing to complications over obtaining mandatory waiver certification. Representational image: TBS
Bangladesh will be able to enjoy trade benefits beyond its graduation from the least-developed country (LDC) bracket in November 2026 after the World Trade Organization (WTO) decided to extend support measures for graduating countries.
The decision was made at a meeting of the WTO General Council on 23 October. Senior officials gathered at the WTO headquarters in Geneva on 23-24 October for a meeting aimed at making preparations for the 13th WTO Ministerial Conference, scheduled for February 2024 in Abu Dhabi.
"This is a very important decision for Bangladesh and fellow LDC graduates," said Prof Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue (CPD) and an expert in trade matters. He said the decision will facilitate a seamless and sustainable transition for graduated LDCs.
Initially, Bangladesh sought a 12-year extension of duty-free market access from the WTO following its anticipated graduation from the LDC status in 2026. This extended period was intended to facilitate a seamless transition for LDCs, ensuring the continuation of LDC-specific preferences and provisions within WTO agreements post-graduation.
Subsequently, the proposal was revised to a range of 9 to 12 years. Also, Chad, a central African nation, put forth a more condensed proposal, suggesting a transition period of 6 to 9 years.
LDC graduation refers to the point when an LDC meets certain United Nations development criteria and is no longer defined as an LDC. As the most vulnerable members of the international community, LDCs are accorded special treatment at the WTO, such as enhanced market access opportunities and flexibility in adopting WTO rules.
The decision encourages WTO members that remove countries from their duty-free and quota-free preference programmes upon graduation from the LDC list to provide a smooth and sustainable transition period for the withdrawal of these preferences after graduation. It marks an important contribution to the implementation of the Doha Programme of Action for LDCs for the period 2022-2031.
Welcoming this achievement, WTO Director-General Ngozi Okonjo-Iweala said: "LDC graduation is an important sign of development progress. Today, WTO members reaffirmed their commitment to helping smooth this process for graduating LDCs to prevent any loss of the economic growth and development momentum that had propelled them to graduation.
"This decision is a significant step towards addressing the particular challenges graduating LDCs face, and will help people from these countries tap into the opportunities that international trade brings. It also is another welcome sign that the wider WTO membership is responding to LDC priorities."
The chair of the General Council, Ambassador Athaliah Lesiba Molokomme of Botswana, said: "I would like to congratulate all members, in particular the LDCs, on this successful outcome. Let me also express my appreciation to all members, as well as the current and former LDC Group Coordinators and the Focal Point for LDC Graduation, for their tireless efforts and pragmatism to bring this issue to a close. This is commendable and inspiring, and hopefully puts the work and discussions that lie ahead of us, today and tomorrow, on a positive trajectory."
Ambassador Kadra Ahmed Hassan of Djibouti, coordinator of the WTO Group of LDCs, said the decision will provide "some measure of predictability and trust for those of our members on the road to graduation and further integrating into the trading system."
There are currently 46 LDCs, of which 16 are at different stages of the graduation process. Of these, ten are WTO members (Angola, Bangladesh, Cambodia, Djibouti, Lao People's Democratic Republic, Myanmar, Nepal, Senegal, Solomon Islands and Zambia) and four (Bhutan, Comoros, Sao Tomé and Principe, and Timor-Leste) are negotiating their terms of entry into the WTO.
The other two LDCs on the graduation path are Kiribati and Tuvalu. The Doha Programme of Action for LDCs calls for 15 more LDCs to meet the graduation criteria by the end of the decade.
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TBS Report24 October, 2023, 10:10 pm
Last modified: 24 October, 2023, 10:14 pm
WTO agrees to aid LDCs with duty-free benefits after graduation
Two foreign-flagged vessels departed the Chittagong port on Tuesday (24 October) with 50% cargo capacity owing to complications over obtaining mandatory waiver certification. Representational image: TBS
Two foreign-flagged vessels departed the Chittagong port on Tuesday (24 October) with 50% cargo capacity owing to complications over obtaining mandatory waiver certification. Representational image: TBS
Bangladesh will be able to enjoy trade benefits beyond its graduation from the least-developed country (LDC) bracket in November 2026 after the World Trade Organization (WTO) decided to extend support measures for graduating countries.
The decision was made at a meeting of the WTO General Council on 23 October. Senior officials gathered at the WTO headquarters in Geneva on 23-24 October for a meeting aimed at making preparations for the 13th WTO Ministerial Conference, scheduled for February 2024 in Abu Dhabi.
"This is a very important decision for Bangladesh and fellow LDC graduates," said Prof Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue (CPD) and an expert in trade matters. He said the decision will facilitate a seamless and sustainable transition for graduated LDCs.
However, Prof Mustafiz noted that the decision of the WTO General Council did not provide a definitive timeframe regarding the duration of duty and other benefits for LDCs following graduation. He guessed that this issue might find clarity during the Abu Dhabi conference.
Initially, Bangladesh sought a 12-year extension of duty-free market access from the WTO following its anticipated graduation from the LDC status in 2026. This extended period was intended to facilitate a seamless transition for LDCs, ensuring the continuation of LDC-specific preferences and provisions within WTO agreements post-graduation.
Subsequently, the proposal was revised to a range of 9 to 12 years. Also, Chad, a central African nation, put forth a more condensed proposal, suggesting a transition period of 6 to 9 years.
LDC graduation refers to the point when an LDC meets certain United Nations development criteria and is no longer defined as an LDC. As the most vulnerable members of the international community, LDCs are accorded special treatment at the WTO, such as enhanced market access opportunities and flexibility in adopting WTO rules.
The decision encourages WTO members that remove countries from their duty-free and quota-free preference programmes upon graduation from the LDC list to provide a smooth and sustainable transition period for the withdrawal of these preferences after graduation. It marks an important contribution to the implementation of the Doha Programme of Action for LDCs for the period 2022-2031.
Welcoming this achievement, WTO Director-General Ngozi Okonjo-Iweala said: "LDC graduation is an important sign of development progress. Today, WTO members reaffirmed their commitment to helping smooth this process for graduating LDCs to prevent any loss of the economic growth and development momentum that had propelled them to graduation.
"This decision is a significant step towards addressing the particular challenges graduating LDCs face, and will help people from these countries tap into the opportunities that international trade brings. It also is another welcome sign that the wider WTO membership is responding to LDC priorities."
The chair of the General Council, Ambassador Athaliah Lesiba Molokomme of Botswana, said: "I would like to congratulate all members, in particular the LDCs, on this successful outcome. Let me also express my appreciation to all members, as well as the current and former LDC Group Coordinators and the Focal Point for LDC Graduation, for their tireless efforts and pragmatism to bring this issue to a close. This is commendable and inspiring, and hopefully puts the work and discussions that lie ahead of us, today and tomorrow, on a positive trajectory."
Ambassador Kadra Ahmed Hassan of Djibouti, coordinator of the WTO Group of LDCs, said the decision will provide "some measure of predictability and trust for those of our members on the road to graduation and further integrating into the trading system."
There are currently 46 LDCs, of which 16 are at different stages of the graduation process. Of these, ten are WTO members (Angola, Bangladesh, Cambodia, Djibouti, Lao People's Democratic Republic, Myanmar, Nepal, Senegal, Solomon Islands and Zambia) and four (Bhutan, Comoros, Sao Tomé and Principe, and Timor-Leste) are negotiating their terms of entry into the WTO.
The other two LDCs on the graduation path are Kiribati and Tuvalu. The Doha Programme of Action for LDCs calls for 15 more LDCs to meet the graduation criteria by the end of the decade.
Bangladesh to enjoy trade benefits beyond 2026
WTO agrees to aid LDCs with duty-free benefits after graduation
