Bangladesh and the Bali Package

At the Ninth WTO Ministerial Conference held in Bali, Indonesia, from December 3 to 7 20I3, ministers adopted the "Bali Package", a series of decisions aimed at streamlining trade. The package provides for, among others, more options for food security of the developing countries, facilitations for boosting the least developed countries' (LDC) trade, and a road map towards implementation of the Doha development agenda (DDA). Bali Package incorporates four main matters- trade facilitation, agriculture and food security in developing world, proposal for developing and least developed countries' trade, and cotton export.
Among the development issues four documents remained unchanged from their Geneva versions such as: (1) Duty-free Quota-free access for LDCs to developed markets. Many countries have already implemented this, and the decision says countries that have not done so far at least 97 per cent of products 'shall keep to' expand the products base.  (2) Simplifying preferential rules of origin for LDCs, making it easier for these countries to identify products as their own goods, and qualifying for preferential treatment in importing countries. (3) A 'services waiver' allowing the LDCs for preferential access to developed countries. (4) A 'monitoring mechanism' consisting of meetings and other methods for monitoring special treatment given, to developing countries.
Bangladesh demanded four facilities for the LDCs. The most important demand was for Duty Free and Quota Free PRQF) access and waiver of export services to the US market. Relaxation, of rules of origin got priority as well, which will help 49 LDCs to identify products as their own and ensure quality in importing countries. Though GSP facility was for non-apparel products like tobacco, sporting equipment, and plastic products, it reduced cost of business to the US. Bangladesh paid $2 million duty on $35million worth of goods under GSP in 2012 while 15.3 per cent duty has to be paid for garment products to the US market. The problem is that Bangladesh will not get DFQF facility in garments to the US due to the 97 per cent product coverage of the existing DFQF that excludes apparels.
Subsidising in agricultural products is an important achievement. Every developing country, including India, can subsidise any product to boost up agricultural production to ensure food security. This will continue for the next four years and will expand, if needed, in future.
There is one year to materialise the Bali Package. In the meantime, Bangladesh needs to take preparations in this regard. First of all, it should maintain contact with the other 48 LDCs to create pressure on rich countries to follow the decisions of Bali Package. Secondly, Bangladesh needs to regain GSP facilities to enhance trade. Another crucial challenge is to ensure secure workplace for garment workers to avoid accidents like Rana Plaza and Tazreen Fashions to get facilities in the US and EU markets. The Bali Package is expected to bring in a number of positives for Bangladesh as much as it will for other member countries.
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