Agenda for UN Conference on LDCs
Saturday, 7 May 2011
Manzur Ahmed
Bangladesh, Sri Lanka, the Maldives, Vietnam, and the Pacific islands are most vulnerable to sea rises, typhoons, cyclones and other weather phenomena and are going to be disproportionately affected by climate change. Most of them are low-income countries, and the adaptation costs are huge. So the international community must provide adequate support for those severely affected low-income countries. Rich countries' offers of funds to the least developed countries ((LDCs) for measures to mitigate or adapt to climate change remain insufficient. As of now the figures committed by the developed world are still insufficient and must be substantially increased over the years to come. To settle the account in favour of LDCs most vulnerable countries (MVCs), the first and worst victims of accelerated climate change caused by the industrialized countries, Bangladesh as the current leader of the World Trade Organisation (WTO) LDC Group, may submit in the fourth UN Conference on the LDCs to be held Turkey from May 09-13, a number of concrete suggestions. Pay-back Fund from high duty imports from LDCs: The developed countries should pay back to the respective LDCs-MVCs duties collected during the last 10 years against goods imported from them against the commitment of duty- and quota-free market access for goods originating from LDCs agreed under the first WTO Ministerial conferences in Geneva in 1996 through to the Paragraph 36 of Hong Kong Ministerial Declaration and also the implementation agenda under WTO LDC works programme. Disburse annually a fixed percentage of trade distorting domestic subsides paid to agricultural and manufactured products to the Climate Change Fund for MVCs-LDCs. The amount accounted for last three years should constitute as the initial fund. Disburse annually a fixed percentage of total value of global market share to the Climate Change Fund for MVCs-LDCs. The amount accounted for last the three years should constitute as the initial fund. The debt servicing obligation of MVCs-LDCs have compelled them to use limited resources to finance debt repayments and this, in turn, prevents them from financing trade, production, infrastructure and capacity building activities for development. The amount payable as debt servicing by MVCs-LDCs should, therefore, be converted into additional annual fund as grant. Additional funding under the UN Millennium Development Goal (MDG) initiative: Disburse annually 0.7 per cent of gross national product (GNP), as committed, to open markets and transfer technology to help MVCs-LDCs to realize their agenda for poverty reduction and sustainable development. The amount accounted for last three years should constitute as the initial fund. As declared in the United Nations Resolution 2626 of October 24, 1970: "Each economically advanced country will progressively increase overseas development assistance (ODA) to the developing countries." More specifically, the rich countries committed to making their "best efforts to reach a minimum amount of 0.7 per cent of GNP at market prices by the middle of the Decade of the 1970s". But almost all rich nations have failed to honour this pledge. At the end of 2008 -- 38 years after the year in which fulfillment of the pledge was originally promised, only 0.3 per cent of the rich countries gross national income (GNI), (which totaled approximately $120 billion at 2007 prices) was actually given. This total was short by $260 billion at 2007 prices, as the 0.7 per cent figure originally pledged would have totaled $380 billion. In 2006, the European Union (EU) redefined its pledge at 0.56 per cent of gross national income (GNI) by 2015. Separate funding under WTO Aid for Trade Initiative: Unlock the growth potential of MVCs-LDCs hindered by insufficient capacity or specific constraints by additional funding in grant form on predictable and regular basis for the following: Domestic, regional and global connectivity; accredited product and services quality management; capacity building for sustainable trade facilitation; and global trade rules compliance measures. Virtual funding by 'Rightful Global Trade': The share of the LDCs in world trade in goods at its present level of 1.8 per cent is disturbingly low. The LDCs' share in world trade in services remains at only 0.5 per cent. Moreover, WTO obligations are imposing increasing costs on the least developed countries. Trading barriers within regions and with global markets should be reduced to stimulate the supply-side response of the LDCs-MVCs with immediate opening of markets. Declaring complete support with the concluding remarks of WTO, its Director General (DG) Pascal Lamy delivered in the informal meeting of the April 29, 2011 WTO Trade Negotiations Committee--- "We need a new approach that goes beyond 'business as usual', and that leads to results this year." And also in total agreement with several speakers - representing the WTO member-countries -- repeated concerns that have been expressed in the April 29, 2011 WTO TNC meeting, saying that "the deadlock prevents the least-developed and smaller developing countries in particular from enjoying the gains that are already promised such as duty-free, quota-free market access for least-developed countries in richer markets, and cuts in cotton subsidies in rich countries." Bangladesh, on behalf of the LDCs, should, therefore, propose the following: All WTO Doha Development Agenda (DDA) agenda related to the LDCs including duty- and quota-free market access in goods and services (mode 1, 3 and 4) under Paragraph 36 of HKMD and GATS modalities exclusively for the LDCs should be immediately operationalised outside the single undertaking package to facilitate LDCs to meet the twin challenges of attaining the millennium development goals and meeting the onslaught of climate change with increased, predictable and sustainable trade in goods and services. The LDC Agenda in the Doha Round, bundled in a single undertaking package, are in fact one of the contractual obligations of the implementation agenda under the WTO LDC work programme. Free transfer of technology: Implementation of Article 66.2 of the TRIPS Agreement should be given effect to and the commitment made in the Doha Ministerial Conference declaration in paragraph 11.2 of the Decision on Implementation-Related Issues and Concerns should be notified annually to put in place a mechanism for ensuring the monitoring and full implementation of the obligations of providing incentives for transfer of technology to the LDCs under grants and or concessional terms. TRIPS "Transfer of Technology" and "Compulsory Licensing" measures should focus, among others, on areas such as gasification of coal, clean and renewable energy, biotechnology, pharmaceuticals, environmental protection and pollution control. Environmental technology, machinery and equipments, goods and services must be made available to the LDCs-MVCs, as grant, to facilitate adoption and implementation of adaptation projects, purchase of goods, the implementation of projects, the acquisition and transfer of technologies, and the contracting of environmental services. Funding mechanisms or modalities should provide for simple and time-bound procedures to be followed for disbursing such fund and support to be accessed, and should also identify the financial and technical assistance resources that they are going to make available and notify annually. Donors should report and notify annually on funds dedicated respectively under Climate Change, MDG and WTO Aid for Trade schemes, how they intend to meet the recipient country's need-based projects, and their progress in mainstreaming and fostering the LDC trade into their aid programming. The writer is Adviser, Federation of the Bangladesh Chambers of Commerce & Industry or FBCCI, and Chairman, FBCCI Standing Committee on WTO and regional trade agreements. He can be reached at e-mail: mahmed019@hotmail.com
Bangladesh, Sri Lanka, the Maldives, Vietnam, and the Pacific islands are most vulnerable to sea rises, typhoons, cyclones and other weather phenomena and are going to be disproportionately affected by climate change. Most of them are low-income countries, and the adaptation costs are huge. So the international community must provide adequate support for those severely affected low-income countries. Rich countries' offers of funds to the least developed countries ((LDCs) for measures to mitigate or adapt to climate change remain insufficient. As of now the figures committed by the developed world are still insufficient and must be substantially increased over the years to come. To settle the account in favour of LDCs most vulnerable countries (MVCs), the first and worst victims of accelerated climate change caused by the industrialized countries, Bangladesh as the current leader of the World Trade Organisation (WTO) LDC Group, may submit in the fourth UN Conference on the LDCs to be held Turkey from May 09-13, a number of concrete suggestions. Pay-back Fund from high duty imports from LDCs: The developed countries should pay back to the respective LDCs-MVCs duties collected during the last 10 years against goods imported from them against the commitment of duty- and quota-free market access for goods originating from LDCs agreed under the first WTO Ministerial conferences in Geneva in 1996 through to the Paragraph 36 of Hong Kong Ministerial Declaration and also the implementation agenda under WTO LDC works programme. Disburse annually a fixed percentage of trade distorting domestic subsides paid to agricultural and manufactured products to the Climate Change Fund for MVCs-LDCs. The amount accounted for last three years should constitute as the initial fund. Disburse annually a fixed percentage of total value of global market share to the Climate Change Fund for MVCs-LDCs. The amount accounted for last the three years should constitute as the initial fund. The debt servicing obligation of MVCs-LDCs have compelled them to use limited resources to finance debt repayments and this, in turn, prevents them from financing trade, production, infrastructure and capacity building activities for development. The amount payable as debt servicing by MVCs-LDCs should, therefore, be converted into additional annual fund as grant. Additional funding under the UN Millennium Development Goal (MDG) initiative: Disburse annually 0.7 per cent of gross national product (GNP), as committed, to open markets and transfer technology to help MVCs-LDCs to realize their agenda for poverty reduction and sustainable development. The amount accounted for last three years should constitute as the initial fund. As declared in the United Nations Resolution 2626 of October 24, 1970: "Each economically advanced country will progressively increase overseas development assistance (ODA) to the developing countries." More specifically, the rich countries committed to making their "best efforts to reach a minimum amount of 0.7 per cent of GNP at market prices by the middle of the Decade of the 1970s". But almost all rich nations have failed to honour this pledge. At the end of 2008 -- 38 years after the year in which fulfillment of the pledge was originally promised, only 0.3 per cent of the rich countries gross national income (GNI), (which totaled approximately $120 billion at 2007 prices) was actually given. This total was short by $260 billion at 2007 prices, as the 0.7 per cent figure originally pledged would have totaled $380 billion. In 2006, the European Union (EU) redefined its pledge at 0.56 per cent of gross national income (GNI) by 2015. Separate funding under WTO Aid for Trade Initiative: Unlock the growth potential of MVCs-LDCs hindered by insufficient capacity or specific constraints by additional funding in grant form on predictable and regular basis for the following: Domestic, regional and global connectivity; accredited product and services quality management; capacity building for sustainable trade facilitation; and global trade rules compliance measures. Virtual funding by 'Rightful Global Trade': The share of the LDCs in world trade in goods at its present level of 1.8 per cent is disturbingly low. The LDCs' share in world trade in services remains at only 0.5 per cent. Moreover, WTO obligations are imposing increasing costs on the least developed countries. Trading barriers within regions and with global markets should be reduced to stimulate the supply-side response of the LDCs-MVCs with immediate opening of markets. Declaring complete support with the concluding remarks of WTO, its Director General (DG) Pascal Lamy delivered in the informal meeting of the April 29, 2011 WTO Trade Negotiations Committee--- "We need a new approach that goes beyond 'business as usual', and that leads to results this year." And also in total agreement with several speakers - representing the WTO member-countries -- repeated concerns that have been expressed in the April 29, 2011 WTO TNC meeting, saying that "the deadlock prevents the least-developed and smaller developing countries in particular from enjoying the gains that are already promised such as duty-free, quota-free market access for least-developed countries in richer markets, and cuts in cotton subsidies in rich countries." Bangladesh, on behalf of the LDCs, should, therefore, propose the following: All WTO Doha Development Agenda (DDA) agenda related to the LDCs including duty- and quota-free market access in goods and services (mode 1, 3 and 4) under Paragraph 36 of HKMD and GATS modalities exclusively for the LDCs should be immediately operationalised outside the single undertaking package to facilitate LDCs to meet the twin challenges of attaining the millennium development goals and meeting the onslaught of climate change with increased, predictable and sustainable trade in goods and services. The LDC Agenda in the Doha Round, bundled in a single undertaking package, are in fact one of the contractual obligations of the implementation agenda under the WTO LDC work programme. Free transfer of technology: Implementation of Article 66.2 of the TRIPS Agreement should be given effect to and the commitment made in the Doha Ministerial Conference declaration in paragraph 11.2 of the Decision on Implementation-Related Issues and Concerns should be notified annually to put in place a mechanism for ensuring the monitoring and full implementation of the obligations of providing incentives for transfer of technology to the LDCs under grants and or concessional terms. TRIPS "Transfer of Technology" and "Compulsory Licensing" measures should focus, among others, on areas such as gasification of coal, clean and renewable energy, biotechnology, pharmaceuticals, environmental protection and pollution control. Environmental technology, machinery and equipments, goods and services must be made available to the LDCs-MVCs, as grant, to facilitate adoption and implementation of adaptation projects, purchase of goods, the implementation of projects, the acquisition and transfer of technologies, and the contracting of environmental services. Funding mechanisms or modalities should provide for simple and time-bound procedures to be followed for disbursing such fund and support to be accessed, and should also identify the financial and technical assistance resources that they are going to make available and notify annually. Donors should report and notify annually on funds dedicated respectively under Climate Change, MDG and WTO Aid for Trade schemes, how they intend to meet the recipient country's need-based projects, and their progress in mainstreaming and fostering the LDC trade into their aid programming. The writer is Adviser, Federation of the Bangladesh Chambers of Commerce & Industry or FBCCI, and Chairman, FBCCI Standing Committee on WTO and regional trade agreements. He can be reached at e-mail: mahmed019@hotmail.com