BD to support revised EU move to grant duty waiver to Pakistan

Bangladesh will not raise any objection to the European Union (EU) move to allow duty-free access to 75 Pakistani products incorporating tariff rate quota on six garment items for a period of two years, reports BSS. "EU indicates its readiness to incorporate tariff rate quota for Pakistan on six items for two years. We would have no objection to the move," Commerce Secretary M Ghulam Hussain, told a press briefing at the Secretariat in the city Tuesday. Among others, Foreign Secretary Mohamed Mijarul Quayes, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) M Shafiul Islam Mohiuddin, director general of the WTO Cell Amitava Chakraborti, senior Vice-president Siddiqur Rahman, second vice-president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) M Hatem were present at the briefing. Hussain said Bangladesh has agreed to the indication of the EU and will convey its decision to the WTO headquarters in Geneva by today (Tuesday). "Bangladesh is trying to safeguard its industry's interest. We've succeeded in that effort," he said. Echoing the commerce secretary, Mijarul said, "We have again reiterated our decision as before regarding EU's move to provide Pakistan with tariff facility." He said Bangladesh might not have any objection to a revised proposal if formally submitted to the WTO. Last year Pakistan pleaded for the duty-waiver for its 75 products when the country faced devastating floods consecutively. However, a bdnews24.com report said: Bangladesh will not support any international move on 'aid for trade' which hampers national interest, says the commerce minister. "Our position is clear. One should not mix aid with trade," M Faruk Khan told the news agency after the Climate Vulnerable Forum meeting at a city hotel on Monday. He was referring to the recent European Union (EU) move to extend duty-free access for Pakistan textile products to the market. While Pakistan, as a developing country, is not entitled to duty-free access to the market, the EU is considering it as the South Asian country was ravaged by floods in 2010. "We understand the Pakistan situation and we also provided aid to them but trade facilitation altogether is a different issue." Khan said. "Our position is clear. We do not support any aid for trade programme for a country which is our competitor." "We have formulated our strategy under which we oppose duty-free access of eight products because it will expose our exporters to competition," he explained. "Exports worth over $100 million will be affected if the privilege is extended to Islamabad," he said, "even after that if the EU extends the facility to Pakistan we suggested it should be for two years and not for unlimited period". The commerce minister pointed out that Pakistan, as a cotton-producing country, would enjoy a competitive advantage over Bangladesh, should that happen. Asked about the Nov 7 WTO meeting in Geneva where Bangladesh opposed the EU's proposal, he said, "Brazil, Argentina and Peru also opposed it." Under the multilateral trade regime, privilege of duty-free access to a certain developing country must be endorsed by all World Trade Organisation member countries. An FE report adds: Bangladesh, the second biggest textile goods exporters to the EU, enjoys duty- and quota-free market access to the market. The country earned about $18 billion by exporting readymade garment products in the last fiscal. The issue was expected to be addressed in the meeting of the WTO's Council for Trade in Goods on November 7 in Geneva. However, it could not be addressed there due to objection raised by some other countries like Indonesia, Brazil and Peru. In the meeting, Vietnam said its concerns had been addressed through bilateral talks and it has thus no reservation now on the tariff concession. Morocco said it could support the EU's request while noting that it would have preferred prior consultation with the EU since the waiver request covers textiles, a major sector of its economy. Bangladesh, Indonesia, Peru and Argentina said they are still studying the revised request and preferred more consultations with the EU on the issue. Brazil expressed reservation about the request and asked the EU for consultation on its possible effects on Brazilian exports. The Council took note of the statements and agreed to forward the issue for its next meeting that may take place within three to four months. The issue of Bangladesh's raising objection to the EU's tariff concession offer to Pakistan was discussed on the sidelines of the recent South Asian Association for Regional Cooperation (SAARC) Summit in the Maldives, as Pakistani Prime Minister Yusuf Raza Gilani raised it during his meeting with Prime Minister Sheikh Hasina. Bangladesh's Foreign Secretary Mizarul Kayes told the media in the Maldives that he would check the issue with Geneva to get the latest position and see what could be done about it.