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
efectiveness 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 specifc 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 Afairs (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, fndings, interpretations, and conclusions as expressed in this summary refect 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 ofcial 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 na-
tional rules and regulations, or the modifcation of exist-
ing national rules and regulations as per provisions of the
various WTO Agreements.
Market-access commitments were aimed at tarif
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 anti-
dumping laws and regulations, and countervailing and
safeguard measures.
Bangladesh reported that it was in a position to com-
ply with market-access committments in most of the
cases, but faced great difculties in terms of complying
with some other obligations. For example, despite hav-
ing 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-of-
payments 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.
Te country was not allowed to invoke Article XVIII:C,
but Members agreed that Bangladesh maintained restric-
tions, 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, re-
quested an extension of the time frame for complying with
TRIPS and TRIMs obligations. An extension of the tran-
sitional 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 exist-
ing TRIMs and introduce new measures until 2020.
Bangladesh anticipated difculties in ensuring compli-
ance 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 mea-
sures. However, faced with complaints over compliance,
Bangladesh may be unable to justify its scientifc ratio-
nale, due to inadequate human resources and skills.
Tere are some instances and indications of products
beings dumped into Bangladesh market. But the private
sectors lack of capacity to furnish evidence on the exist-
ence of such dumping practices, and on the alleged in-
jury caused to the domestic industry by such dumping,
which are two prerequisites for initiating any investiga-
tion, does not permit any investigation with respect to
antidumping and countervailing procedures.
Recognizing that the LDCs may face difculty in meeting
the rules set out by the WTO, the Decision on Measures
in Favour of Least-developed Countries
a
had foreseen the
need to ensure their efective participation in the world
trading system and to improve their trading opportuni-
ties. A great number of Multilateral Trade Agreements
(MTAs) provide Special and Diferential 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
fnancial 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
diferential treatment to developing countries, including
concerns such as food security, and the possible negative
efects of reform implementation on LDCs and Net Food-
Importing Developing Countries (NFIDCs).
Article 15.2 of the AoA provides LDCs with an overall ex-
emption from undertaking reduction commitments, and
a more specifc exemption from bound agricultural tarif
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 rep-
resent an additional fexibility 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 Efects of the Reform Programme on Least-
Developed and Net Food-Importing Developing Countries
(Article 16.2 AoA). In this decision, trade ministers agreed,
inter alia, (i) to adopt guidelines to ensure that an increas-
ing proportion of basic foodstufs is provided to LDCs and
NFIDCs in fully grant form and (ii) to give full consideration
to requests for the provision of technical and fnancial as-
sistance to LDCs and NFIDCs to improve their agricultural
productivity and infrastructure. In 1995, the Committee
established notifcation requirements under which donor
Members are required to submit data on quantity of food
aid and technical and fnancial assistance to improve agri-
cultural productivity provided to LDCs and NFIDCs.
b Twenty-ve WTO Members can subsidize exports, but only for products on which
they have commitments to reduce subsidies. 34 WTO Members have commitments
to reduce their trade-distorting domestic supports in the amber box (i.e to reduce the
total aggregate measurement of support or AMS).
www.wto.org/english/tratop_e/agric_e/negs_bkgrnd08_export_e.htm
www.wto.org/english/tratop_e/agric_e/negs_bkgrnd08_domestic_e.htm
Country response
Domestic support
Bangladesh is not required to undertake any reduc-
tion commitment; when the country became a 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). Te country has not so far
provided any agricultural export subsidies.
Bangladesh ofers domestic support in the form of
subsidies (input and output subsidies, for example, sub-
sidized fertilizer and seed procurement).
LDCs as Net food Importers
1
Food aid. After 1995, Bangladesh continued to receive
food aid and project aid in agriculture, but the country
reported that infows in food aids have gradually de-
creased 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 fnancial as-
sistance to enhance agricultural output, productivity,
crop diversifcation 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. Te country
gave examples in the following areas:
Market access. In the Uruguay Round, all countries,
including LDCs, had to withdraw all quantitative re-
strictions and bind duties on all agricultural 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 Efects of the Reform Programme
on Least-Developed and Net Food-Importing Developing
Countries, 15 October 2010.
4
reduction commitments, this fexibility was ofset by the
tarif liberalization process initiated by Bangladesh un-
der 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 produc-
tion; hence, Bangladesh was not required to make any
reduction commitment through taking advantage of
the relevant SDT provision. Terefore, the SDT provi-
sion relating to exemption from reducing amber box
subsidies has not been of any beneft 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 coun-
tries provided exports subsidies, and were required, as
such, to undertake reduction commitment. No LDC
was included in this list. Since Bangladesh did not pro-
vide 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
infow have been on the decline over the past years.
Bangladesh indicated that one of the reasons for this
could be that its agriculture has been performing re-
markably well in recent times, with the country gradu-
ally moving towards food self-sufciency.
C. Agreement on the Application of Sanitary
and Phytosanitary Measures (SPS)
The SPS Agreement has several SDT provisions for LDCs:
When preparing or applying sanitary or phytosanitary
(SPS) measures, Members shall take account of the special
needs of developing country Members, and in particular of
the least-developed country Members (Article 10.1). In or-
der to operationalize Article 10.1, the SPS Committee set
out a Procedure to Enhance Transparency of Special and
Diferential Treatment in Favour of Developing Country
Members.
c
If a developing country identifes signifcant
difculties with the proposed or fnal measure, the im-
porting Member would examine whether and how the
identifed 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
diferential treatment. Such a decision has to be notifed
to the SPS Committee. As of 2012, no country has utilized
this procedure.
Under Article 10.4, Members should encourage and facil-
itate the active participation of developing country Members
in the relevant international organizations, that is the
FAO/WHO Codex Alimentarius, the World Organization for
Animal Health (OIE) and the International Plant Protection
Convention (IPPC). The 2001 Doha Ministerial Decision
on Implementation-related Issues and Concerns urges
the Director-General to continue his cooperative eforts with
these organizations and institutions in this regard, including
with a view to according priority to the efective participation
of least-developed countries and facilitating the provision of
technical and fnancial assistance for this purpose (par. 3.5).
As a result, trust funds have been established to increase
participation of developing countries in the three stand-
ard-setting bodies.
d
Under Article 9, Members agree to facilitate the provision
of technical assistance to other Members [...] inter alia, in the
areas of processing technologies, research and infrastructure,
including in the establishment of national regulatory bodies
[...] to allow such countries to adjust to, and comply with, sani-
tary or phytosanitary measures necessary to achieve the ap-
propriate level of sanitary or phytosanitary protection in their
export markets. The 2001 Doha Ministerial Decision on
Implementation-related Issues and Concerns urges mem-
bers to ensure that technical assistance is provided to least-
developed countries with a view to responding to the special
problems faced by them in implementing the Agreement
on the Application of Sanitary and Phytosanitary Measures
(par. 3.6). In 2002, the Standards and Trade Development
Facility (STDF) was established to assist developing coun-
tries to enhance their expertise and capacity to analyze
and implement international SPS standards, and thus their
ability to gain and maintain market access.
e
c See WTO documents G/SPS/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 organizations
2
Bangladesh indicated that it did not have any representa-
tive 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. Te coun-
try is a member of these three standard-setting bodies.
Participation in the SPS Committee
Capital-based ofcials have had the opportunity to at-
tend some of the regular meetings of the SPS Committee.
Non-compliance with SPS measures of importing Members
Bangladesh experienced difculties in meeting the SPS
requirements of importing countries for some of its ex-
ports (see Annex Table 2):
Government action. Generally, exporters facing prob-
lems in meeting SPS requirements applied by import-
ing countries bring their case to the attention of the
Government. Te Government then takes the initiative
to resolve the problem through bilateral discussions with
the government of the country concerned, and under-
takes corrective measures.
In the case of shrimps, the European Union (EU)
imposed an import ban in 1997, which was later lifted
by the EU authorities. In 2009, the EU rejected entry for
at least 50 container loads of shrimps in which the pres-
ence of the banned antibiotic nitrofuran was detected.
Tese 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 diculties with proposed SPS measures of
other WTO Members
Bangladesh does not have a regular system to monitor
SPS measures notifed to the WTO and evaluate their
impact on trade. For this reason, Bangladesh does not
notify the WTO when it faces potential difculties with
proposed SPS regulations by importing Members.
Technical assistance
In 1997, the EU provided fnancial and technical assis-
tance to help Bangladesh comply with Hazard Analysis
Critical Control Point (HACCP) requirements, a
food safety management system. In the last fve years,
Bangladesh has received technical and fnancial as-
sistance from the EU and UNIDO under the project
titled Bangladesh Quality Support programme. Te
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 Assistance
3
Te Government of Bangladesh is yet to receive any sup-
port from the STDF, which will be considered after the
completion of the Diagnostic Trade Integration Study
(DTIS) under the Enhanced Integrated Framework
(EIF). Te World Bank has been entrusted with the
DTIS and is currently engaged in the study.
Additional comments
Te main reasons for not appropriately taking advantage
of the SDT provisions under the SPS Agreement are re-
lated to inadequate human resources within the govern-
ment 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 meet-
ings of the TBT Committee. Between 1995 and 2010,
the country did not make any notifcation to the TBT
Committee.
4

Tere is lack of capacity to regularly examine TBT-
related notifcations 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 Specifc Trade Concerns regarding techni-
cal regulations and standards.
Non-compliance with technical regulations or standards
of importing Members
Some consignments of Bangladesh major export prod-
ucts, 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 specifed, time-limited exceptions in
whole or in part from obligations under the TBT Agreement.
When considering such requests, the Committee shall, in
particular, take into account the special problems of the least-
developed country Members (Article 12.8).
When providing advice and technical assistance to
other WTO Members, Members shall give priority to the
needs of the least-developed country Members. (Article 11.8).
Also, in determining the terms and conditions of the techni-
cal assistance, account shall be taken of the stage of devel-
opment of the requesting Members and in particular of the
least-developed country Members. (Article 12.7).
Technical assistance may include: advice on the prepara-
tion of technical regulations (Article 11.1); the establishment
of national standardizing bodies, and participation in the
international standardizing bodies (Article 11.2); the estab-
lishment of conformity assessment bodies (Article 11.3 and
11.4); advise regarding the steps that should be taken by
producers from developing countries if they wish to have
access to systems for conformity assessment operating
within the territory of the importing Member (Article 11.5);
advice regarding the establishment of the institutions and
legal framework which would enable them to fulfl the ob-
ligations of membership or participation in international
or regional conformity assessment systems (Article 11.6
and 11.7).
The 2001 Doha Ministerial Decision on Implementation-
related Issues and Concerns (i) urges members to provide,
to the extent possible, the fnancial and technical assistance
necessary to enable least-developed countries to respond
adequately to the introduction of any new TBT measures
which may have signifcant negative efects on their trade;
and (ii) urges members to ensure that technical assistance is
provided to least-developed countries with a view to respond-
ing to the special problems faced by them in implementing
the Agreement on Technical Barriers to Trade (par 5.4). In
2002, the WTO Secretariat submitted a questionnaire for
a survey to assist developing country Members to identify
and prioritise their specifc needs in the TBT feld.
f
In 2000, the TBT Committee decided that tangible
ways of facilitating developing countries participation in
international standards development should be sought. The
impartiality and openness of any international standard-
ization process requires that developing countries are not
excluded de facto from the process. With respect to improv-
ing participation by developing countries, it may be ap-
propriate to use technical assistance, in line with Article 11 of
the TBT Agreement.
g
The 2001 Doha Ministerial Decision
on Implementation-related Issues and Concerns urges
the Director-General to continue his cooperative eforts with
these organizations and institutions, including with a view to
according priority to the efective participation of least-devel-
oped countries and facilitating the provision of technical and
fnancial 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 fshing.
Government action. In the event of a non-compliance
issue, the Government of Bangladesh takes up the dis-
pute with the importing country to resolve the dispute
through mutual discussion and also by taking corrective
measures.
Identication of technical assistance needs
5
In 2002, Bangladesh responded to a survey by the WTO
Secretariat which aimed at assisting developing country
Members to identify and prioritise their technical as-
sistance needs.
6
Te country prioritised the following
TBT-related technical assistance, technical cooperation
and capacity building needs:
y Technical Mission by the WTO for raising aware-
ness about the TBT and providing training to con-
cerned ofcials with a view to enabling them to fulfl
the requirement of the TBT Agreement;
y Technical and fnancial assistance to upgrade the
Bangladesh Standards and Testing Institution (BSTI);
y Financial assistance to participate in international
standard-setting activities as well as in annual and
triennial reviews of the TBT Agreement;
y Technical assistance regarding access to systems for
conformity assessment operated by the developed
countries.
Technical assistance
Bangladesh has benefted from the technical and fnan-
cial support of the EU, the United Nations Industrial
Development Organization (UNIDO), and Japan Debt
Cancellation Fund (JDCF). Projects funded and imple-
mented 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 specifc needs in the TBT-feld,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 & infra-
structure, 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 pre-
pared to make use of the relevant SDT provisions, if
a particular institution, such as the Bangladesh Tarif
Commission (BTC), was entrusted with the responsi-
bility to regularly monitor the notifcations, 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 pe-
riod to phase out measures inconsistent with the TRIMs
Agreement, if they were notifed 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 difculties to bring these mea-
sures in conformity with the TRIMs Agreement (Article 5.3).
The 2001 Doha Ministerial Decision on Implementation-
related Issues and Concerns, urges the Council for Trade
in Goods to consider positively requests that may be made
by least-developed countries under Article 5.3 of the TRIMs
Agreement or Article IX.3 of the WTO Agreement, as well as to
take into consideration the particular circumstances of least-
developed countries when setting the terms and conditions
including time-frames (par. 6.2).
Annex F of the Hong Kong Ministerial Declaration
i
in-
troduced three SDT provisions which will expire by 2020:
First, LDCs were allowed to maintain TRIMs-inconsistent
measures for a (new) period of seven years, if notifed by
18 January 2008. Second, this transition period may be
8
Country response
Notication of TRIMs inconsistent with the
TRIMs Agreement
Bangladesh has never notifed 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 deviat-
ing 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 provisions
7
Bangladesh delayed the implementation of the Agreement
on Customs Valuation for fve years (Article 20.1)
since it was not party to the Tokyo Round Customs
Valuation Code, without notifying the WTO. Te
country did not request an extension of the fve-year
delay period (Annex III, paragraph 1).
Te 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 ofcially not resorted to
Annex III, paragraph 2.
The Agreement on Customs Valuation permitted devel-
oping country Members not party to the Tokyo Round
Customs Valuation Code to delay application of the provi-
sions of this Agreement an initial transitional period of fve
years (Article 20.1), which could be extended if requested
and justifed (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 ofcially 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 fnancial, trade, and de-
velopment needs of the Member in question. Third, LDCs
were given the right to introduce new TRIMs-inconsistent
measures for fve years, if notifed 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 notications foreseen in Article 5.1, with the period for the elimination of TRIMs
notied 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/nal_annex_e.htm#annexf
on a limited and transitional basis under such terms and con-
ditions as may be agreed to by the Members.
Annex III.3 allowed developing countries to make a res-
ervation concerning the sequential order of Articles 5 and 6.
Members who made a reservation under Article III.4 are
allowed to use the prices applicable in the importing coun-
tries, whether or not the importer agrees to it.
These two provisions are permanent exceptions
if Members consented to the reservation, in contrast
with the special provisions under Articles 20.1 and 20.2,
Annex III.1 and Annex III.2.
j
The 2001 Doha Ministerial Decision on Implementation-
related Issues and Concerns urges the Council for Trade
in Goods to give positive consideration to requests that
may be made by least-developed country members under
paragraphs 1 and 2 of Annex III of the Customs Valuation
Agreement or under Article IX.3 of the WTO Agreement, as well
as to take into consideration the particular circumstances of
least-developed countries when setting the terms and condi-
tions including time-frames.
j As of 2009, there is no single Member to have beneted 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 im-
porters 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%).
Te exports benefting from such subsidies have
not been subject to countervailing measures. Further,
Bangladesh indicated that none of the products receiv-
ing 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 competitive-
ness, a share of at least 3.25 per cent in world trade for
that product for two consecutive calendar years. Legally,
export competitiveness only exists if the LDC notifes the
WTO or if the WTO Secretariat performs the calculation on
request of another Member (Article 27.6).
LDCs can beneft from a phase-out period of eight
years after reaching export competitiveness (Article 27.5).
In the 2001 Doha Ministerial Decision on Implementation-
related Issues and Concerns, it was decided that the eight-
year period in Article 27.5 within which a least-developed
country Member must phase out its export subsidies in respect
of a product in which it is export-competitive begins from the
date export competitiveness exists within the meaning of
Article 27.6.
The GATS provides that special priority shall be given to 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 de-
veloping country Members in world trade shall be facilitated
through negotiated specifc commitments [...] relating to:
(a) the strengthening of their domestic services capacity and
its efciency and competitiveness, inter alia through access
to technology on a commercial basis; (b) the improvement
of their access to distribution channels and information net-
works; and (c) the liberalization of market access in sectors
and modes of supply of export interest to them.
In 2003, Members decided to develop appropriate
mechanisms with a view to achieving full implementation of
Article IV:3 of the GATS and facilitating efective access of LDCs
services and service suppliers to foreign markets. Members
also decided that targeted and coordinated technical assis-
tance and capacity building programmes shall continue to be
provided to LDCs in order to strengthen their domestic services
capacity, build institutional and human capacity, and enable
them to undertake appropriate regulatory reforms.
k

Telecommunications
In the GATS Annex on Telecommunications,
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 treat-
ment for Least-Developed Country Members in the negotiations on trade in services.
l http://www.wto.org/english/tratop_e/serv_e/12-tel_e.htm.
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 least-
developed country Members, Bangladesh provided in-
formation on its individual priority needs for technical
and fnancial 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 pri-
oritized in its national development policies.
Technical assistance
Te 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 efciency of their em-
ployees and provide quality service, they have provided
training programmes on a commercial basis. Tese pro-
grammes, along with telecom business operations run
in the country, have facilitated technology transfer. Te
programmes were not undertaken to meet any specifc
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 pro-
visions of the TRIPS Agreement, other than
Articles 3, 4 and 5, for a period of 10 years from
1 January 1996 (Articles 65.1 and 66.1). An extension of the
transition period (par. 1) was granted for LCD members for
another 7.5 years, until 1 July 2013.
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 fnancial cooperation in favour of de-
veloping and least-developed country Members. According
to paragraph 2 of the Decision on the Extension of the
Transition Period under Article 66.1 for LDCs, all the LDC
Members will provide to the Council for TRIPS as much in-
formation as possible on their individual priority needs for
technical and fnancial cooperation in order to get proper
assistance to implement the TRIPS Agreement, preferably
by 1 January 2008. Developed country Members were re-
quested to furnish technical and fnancial cooperation in
favour of LDCs in order to efectively 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 Health
p
recognized that
WTO Members with insufcient or no manufacturing ca-
pacities in the pharmaceutical sector could face difculties in
making efective 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 specifc conditions. It is assumed that LDCs have
insufcient 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
Te country has received technical cooperation from
developed country Members to assist in the implemen-
tation of the TRIPS Agreement. Te European Union
has supported a project in the Department of Patents,
Designs and Trademarks, with the objective to intro-
duce new laws or modify existing laws in the area of
patent designing, trademarks and geographical indica-
tions. Te project also stipulated the training of police,
customs ofcials, lawyers and judges in areas of TRIPS
compliance.
Use of the Paragraph 6 System
10
Te 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 ofces 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 frst 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 re-
quested 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 dis-
pute settlement procedures, Members shall exercise due
restraint both in raising matters involving LDCs, and in ask-
ing for compensation or seeking authorization to suspend
concessions or other applicable obligations.
In dispute settlement cases involving an LDC, the
Director-General or the Chairman of the DSB shall, upon
request by a LDC ofer their good ofces, conciliation and me-
diation with a view to assisting the parties to settle the dispute,
before a request for a panel is made.
The Trade Policy Review Mechanism (TPRM) provides
that smaller trading countries will be reviewed every six
years, except that a longer interval may be fxed for LDCs.
Particular account shall be taken of difculties presented
to LDCs in compiling their reports. The Secretariat shall
make available technical assistance on request to devel-
oping country Members, and in particular to the least
developed country Members.
Trade Policy Review URL
2000
www.wto.org/english/tratop_e/tpr_e/tp132_e.htm
2006
www.wto.org/english/tratop_e/tpr_e/tp269_e.htm
12
Country response
Bangladesh has not yet submitted any proposal for
support under the Aid for Trade initiative. However,
eforts 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
eectiveness of WTO Special Support
Measures
In many LDCs, there is a lack of capacity to (a) absorb
the technical notifcations from the WTO, (b) assess
their implications on ofensive as well as defensive inter-
ests, (c) take follow-up actions to safeguard the countrys
ofensive and defensive interests, and (d) design propos-
als for concrete technical, advisory, and fnancial capac-
ity 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 inter-
ministerial coordination, and (c) building up greater
capacity to (i) articulate and (ii) prepare projects for sup-
port, 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 frst step for funding under the
Enhanced Integrated Framework (EIF).
M. Enhanced Integrated Framework (EIF)
Bangladesh country profle is posted on the EIF website.
LDCs have highlighted the importance of their own contri-
bution to reducing their supply-side constraints. One of the
main components of the Enhanced Integrated Framework
(EIF) process includes the preparation of a Diagnostic Trade
Integration Study (DTIS) to recognize constraints to trad-
ers, distinguish sectors of greatest export potential, and
identify an action matrix, a plan of action that would allow
a better integration of LDCs into the international trading
system. This would enable LDCs to formulate trade-related
projects and to access Aid for Trade.
Aid for Trade is development assistance targeted at
helping developing countries to take advantage of trade
opportunities. In December 2005, the Sixth Ministerial
Conference in Hong Kong created a new WTO work
programme on Aid for Trade. Ministers directed the WTO
to coordinate its eforts with donors and relevant agencies
to signifcantly increase aid for trade-related technical assis-
tance and capacity building (Annex F of the Hong Kong
Ministerial Declaration).
r
r See Aid for Trade.
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 destina-
tions were the European Union (50.7%), the United States
(24.4%) and Canada (4.1%). Te Everything But Arms
(EBA) scheme of the EU and GSP schemes of a 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-tarif 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 signifcant impediment to the
full utilization of LDC preferences. Bangladeshs major
item of export is apparel. Bangladeshi apparel frms in
the woven-Ready Made Garment (RMG) segment have
to import a signifcant quantity of fabrics and are there-
fore unable to fully utilize preferences in woven apparel
due to two-stage transformation requirements.
For other products, rules of origin present a less sig-
nifcant 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 gener-
ous 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 introduc-
ing a GSP certifcation system in Bangladesh which
will improve Bangladeshs administrative capacity with
Non-reciprocal market access preferences entitle export-
ers from LDCs to pay lower tarifs 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 difculties to provide duty-free and
quota-free (DFQF) market access immediately commit
themselves to provide duty-free and quota-free market ac-
cess for at least 97 per cent of products originating from LDCs,
defned at the tarif line level, by 2008 or no later than the start
of the implementation period (Annex F of the 2005 Hong
Kong Ministerial Declaration).
Although LDCs may be granted duty-free treatment
for all or most of their exports to some of their trading
partners, these preferences are far from being fully uti-
lized, and many exports eligible for preferential treatment
do not actually receive it, and are eventually submitted to
duties.
1 Rules of origin
2 Supply-side problems
3 Non-tarif 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 con-
straints 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
tarif peaks pose formidable challenge to Bangladeshi
exporters.
Te following major export products have low-
preference margins:
4. Security of access
Te country considered that the lack of security of pref-
erential access acted as a deterrent to export-oriented
investment. A good example of that was the petition
fled by a sleeping bag manufacturer in the United States
requiring the withdrawal of GSP facilities on sleeping
bags. Te Government of Bangladesh as well as other
Bangladeshi stakeholders sent their written submissions
on the petition when the Ofce of United States Trade
Representative (USTR) initiated the review. Te 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. Te 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. Terefore, 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 aected
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 recip-
rocal basis, and such participating least-developed country
shall beneft from the extension of all tarif, para-tarif and
non-tarif concessions exchanged in the bilateral/plurilateral
negotiations which are multilateralized.
t
s Members who face diculties 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, dened at the tari 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:
y Republic of Korea, with Rules of Origin requirement
of 50% value addition;
y China, with Rules of Origin requirement of 40%
value addition or Change of Tarif Heading (CTH);
y India, with Rules of Origin requirement of 30%
value addition, plus CTH (DFQF within fve years);
y Brazil has granted Bangladesh DFQF access cover-
ing 80% of all tarif 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
Te main impediments to utilizing preferences in
schemes made available by developing countries primar-
ily relate to product coverage and rules of origin:
y For Bangladesh, the Duty Free and Tarif Preference
scheme (DFTP) ofered by India in 2008 is less
attractive than tarif concessions granted by India
under the South Asian Free Trade Agreement
(SAFTA), both in terms of coverage and extension
of tarif concessions. While all products covered un-
der DFTP Scheme are duty-free since January 2008
under the SAFTA, these are yet to be made duty-free
under the DFTP scheme.
y Te Republic of Korea introduced the duty-free
scheme for LDCs on 1 January 2008 and product
coverage was further extended frst in January 2009,
then in January 2010. Te coverage of the duty-free
scheme accorded by the Republic of Korea to its
imports from Bangladesh is not signifcant. Rules
of origin require 50% value addition. Terefore, it
will not be easy for Bangladesh to beneft from this
particular scheme.
y Te duty-free scheme granted by China has come
into efect only on 1 July 2010. Terefore, it is too
early to make an assessment of its efectiveness.
Generalized System of Trade Preferences (GSTP)
Bangladesh enjoys tarif preferences granted for LDCs
under the Global System of Trade Preferences (GSTP).
However, Bangladesh is not participating in the on-
going third round of trade negotiations under the GSTP.
C. Reciprocal trade arrangements
Country response
Benets of Reciprocal trade agreements (RTAs)
Te government considered that being a party to recip-
rocal trade agreements has provided additional benefts
over those enjoyed from LDC status under the WTO
(see Annex Table 5).
y 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 beneft from such a treat-
ment under Indias DFTP scheme for LDCs.
y APTA: Te 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 prefer-
ential agreement. Such agreements, when entered into
with other developing countries, often provide LDCs with
preferential access to markets that they would otherwise
not receive.
In FTAs with developed countries, which are commit-
ted to grant DFQF treatment, additional benefts can be
provided by improvements in rules of origin or greater
access to fnancial and technical assistance to overcome
Non-Tarif Measures (NTMs) such as SPS. On the other hand,
membership in these Agreements may require LDCs to
make reciprocal concessions which they are not required
to make in the WTO or even accept more stringent disci-
plines on other trade issues (so-called WTO plus). LDCs
could also face higher duties than their competitors when
they do not sign FTAs with major export markets.
u
u See Strengthening International Support Measures for the Least Developed
Countries, Policy Note, Committee for Development Policy, p. 9.
16
granted under the Asia Pacifc Trade Agreement
(APTA), as APTA covers many items of export in-
terest to Bangladesh.
y BIMSTEC: Bangladesh also receives additional
market access under the BIMSTEC-FTA from
Tailand. BIMSTEC stands for Bay of Bengal
Initiative for Multi-Sectoral Technical and Economic
Cooperation.
12
Important export products from Bangladesh face
higher tarifs than those of competitors in main markets
due to FTAs, customs unions or other limited preferen-
tial schemes.
D. Recommendations to improve
international support measures related to
preferential market access
Te following suggestions were provided:
y Product coverage of DFQF. In order to improve
preferential market access, coverage of such 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
y Rules of origin. Rules of origin should be formulated
in such a way so that countries eligible for preferen-
tial treatment can efectively take advantage of such
preferences.
y Supply-side constraints and export diversifcation.
One of the major concerns relate to supply-side con-
straints. Greater international support in building
supply-side capacities towards export diversifcation
is key to realising the potential benefts of preferential
market access. Besides, initiatives towards encourag-
ing Foreign Direct Investment (FDI) in LDCs from
developed and developing countries (through addi-
tional 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. Te WTO Agreement
on Trade Facilitation also stipulates that necessary
support will be accorded to LDCs in identifed areas
of capacity needs. Te 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 = fnancial 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 defciencies in infrastructure and hygiene conditions in processing
establishments and lax quality control by Bangladesh government inspectors
Hilsa fsh India Mandatory testing requirement of each and every consignment of all processed
food and sanitary permit requirement for import of hilsa fsh
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 Benets of RTAs
Beneft(s)
South Asian Free Trade Agreement
(SAFTA)
Asia Pacifc Trade Agreement
(APTA)
Greater security of access X X
Preferential treatment that would not otherwise be
available X X
Wider product coverage X
More fexible rules of origin X X
Provisions for dealing more efectively with NTMs
Additional technical and fnancial assistance X X